Report on

Corporate Governance
The Directors present the Company’s Report on ethical corporate citizenship, empowerment & accountability
Corporate Governance pursuant to the Securities and and control. ITC believes that the practice of each of
Exchange Board of India (Listing Obligations and these creates the right corporate culture that fulfils the
Disclosure Requirements) Regulations, 2015 (Listing true purpose of Corporate Governance.
Regulations 2015). Trusteeship recognises that large corporations, which
ITC Limited has been one of the frontrunners in India to represent a coalition of interests, namely those of the
have put in place a formalised system of Corporate shareholders, other providers of capital, business
Governance. Its governance framework enjoins the associates and employees, have both an economic and
highest standards of ethical and responsible conduct of a social purpose, thereby casting the responsibility on
business to create value for all stakeholders. the Board of Directors to protect and enhance shareholder
value, as well as fulfil obligations to other stakeholders.
THE COMPANY’S GOVERNANCE PHILOSOPHY Inherent in the concept of trusteeship is the responsibility
ITC defines Corporate Governance as a systemic process to ensure equity, namely, that the rights of all
by which companies are directed and controlled to shareholders, large or small, are protected.
enhance their wealth-generating capacity. Since large Transparency means explaining the Company’s policies
corporations employ a vast quantum of societal and actions to those to whom it has responsibilities.
resources, ITC believes that the governance process Externally, this means maximum appropriate disclosures
should ensure that these resources are utilised in a without jeopardising the Company’s strategic
manner that meets stakeholders’ aspirations and societal interests and internally, this means openness in the
expectations. This belief is reflected in the Company’s Company’s relationship with its employees and in the
deep commitment to contribute to the “triple bottom line”, conduct of its business. ITC believes transparency
namely conservation and development of the nation’s enhances accountability.
economic, social and environmental capital. Ethical Corporate Citizenship means setting exemplary
ITC’s Corporate Governance structure, systems and standards of ethical behaviour, both internally within the
processes are based on two core principles: organisation, as well as in external relationships. ITC
(i) Management must have the executive freedom believes that unethical behaviour corrupts organisational
to drive the enterprise forward without undue culture and undermines stakeholder value. Governance
restraints, and processes in ITC continuously reinforce and help realise
the Company’s belief in ethical corporate citizenship.
(ii) This freedom of management should be exercised
Empowerment is a process of unleashing creativity
within a framework of effective accountability.
and innovation throughout the organisation by truly
ITC believes that any meaningful policy on Corporate vesting decision-making powers at the most appropriate
Governance must empower the executive management levels and as close to the scene of action as feasible,
of the Company. At the same time, Governance should thereby helping actualise the potential of its employees.
create a mechanism of checks and balances to ensure Empowerment is an essential concomitant of ITC’s
that the decision-making powers vested in the executive first core principle of governance that management
management are used with care and responsibility to must have the freedom to drive the enterprise forward.
meet stakeholders’ aspirations and societal expectations. ITC believes that empowerment combined with
From this definition and core principles of Corporate accountability provides an impetus to performance
Governance emerge the cornerstones of ITC’s and improves effectiveness, thereby enhancing
governance philosophy, namely trusteeship, transparency, shareholder value.

The cornerstones of ITC’s governance philosophy are

trusteeship, transparency, ethical corporate citizenship,
empowerment & accountability and control.

10 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

Control ensures that freedom of management is ROLES OF VARIOUS ENTITIES

exercised within a framework of checks and balances Board of Directors (Board): The primary role of the
and is designed to prevent misuse of power, facilitate Board is that of trusteeship to protect and enhance
timely management of change and ensure effective shareholder value through strategic supervision of ITC,
management of risks. ITC believes that control is a its wholly owned subsidiaries and their wholly owned
necessary concomitant of its second core principle of subsidiaries. As trustees, the Board ensures that the
governance that freedom of management should Company has clear goals aligned to shareholder value
be exercised within a framework of appropriate checks and its growth. The Board sets strategic goals and seeks
and balances. accountability for their fulfilment. The Board also provides
direction and exercises appropriate control to ensure
THE GOVERNANCE STRUCTURE that the Company is managed in a manner that fulfils
The practice of Corporate Governance in ITC takes stakeholders’ aspirations and societal expectations. The
place at three interlinked levels: Board, as part and parcel of its functioning, annually
reviews its role and also evaluates the performance of
Strategic supervision by the Board of Directors the Directors and the Board Committees.
Strategic management by the Corporate Management Board Committees: The roles of the Board Committees
Committee are determined by the Board from time to time, details
of which are provided below, under the heading
Executive management by the Divisional Chief Executive ‘Committees of the Board’.
assisted by the Divisional
Management Committee Corporate Management Committee (CMC): The
primary role of the CMC is strategic management of
The three-tier governance structure ensures that: the Company’s businesses within Board approved
direction / framework and realisation of Company goals.
(a) Strategic supervision (on behalf of the Shareholders), The CMC also assesses the performance of the
being free from involvement in the task of strategic businesses and allocates resources, and operates under
management of the Company, can be conducted by the strategic supervision and control of the Board.
the Board with objectivity, thereby sharpening Divisional Management Committee (DMC): The
accountability of management; primary role of the DMC is executive management of
(b) Strategic management of the Company, uncluttered the business to realise tactical and strategic objectives
by the day-to-day tasks of executive management, in accordance with Board approved plan.
remains focused and energised; and The Executive Committee for Business Vertical within
the Division is responsible to deliver comprehensive
(c) Executive management of the divisional business business results under the overall direction and
free from collective strategic responsibilities for supervision of the Divisional Chief Executive supported
ITC as a whole, remains focused on enhancing the by the DMC.
quality, efficiency and effectiveness of the business
Chairman: The primary role of the Chairman of the
to achieve best-in-class performance.
Company is to provide leadership to the Board. As the
The core roles of the key entities flow from this structure. Chairman of the Board, he presides over its meetings
These roles, in turn, determine the core responsibilities and leads and assists the Board in setting and realising
of each entity. In order to discharge such responsibilities, the Company’s strategic vision and related short and
each entity is empowered formally with requisite powers. long term goals. He is responsible, inter alia, for the
working of the Board, for its balance of membership
The structure, processes and practices of governance (subject to Board and Shareholder approvals) and for
are designed to support effective management of multiple ensuring that all Directors are enabled and encouraged
businesses while retaining focus on each one of them. to play a full part in the activities of the Board. The
The Governance Document that sets out the structure, Chairman ensures that relevant issues are on the Board
policies and practices of governance within the agenda and the Board is kept informed on all matters
organisation is available on the Company’s corporate of importance. He also presides over General Meetings
website www.itcportal.com. of Shareholders.

ITC Limited REPORT AND ACCOUNTS 11

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Report on Corporate Governance

Managing Director: The Managing Director carries total the DMC in its task of executive management of the
responsibility for the strategic management of the business and the Verticals within the Division.
Company and provides leadership to the CMC for The Chief Operating Officer - Business Vertical is
realising Company goals in accordance with the charter responsible for providing leadership to the Vertical and
approved by the Board. He is responsible, inter alia, realising the tactical and strategic objectives of the
for the working of the CMC, for ensuring that all relevant respective business area.
issues are on the agenda and that all CMC Members
are enabled and encouraged to play a full part BOARD OF DIRECTORS
in its activities. In terms of the Company’s Corporate Governance Policy,
all statutory and other significant and material information
The present Managing Director, Mr. S. Puri, has
are placed before the Board to enable it to discharge its
been appointed also as the Chairman of the Company
responsibility of strategic supervision of the Company
with effect from 13th May, 2019. as trustees of Shareholders.
Non-Executive Director: Non-Executive Directors,
Composition
including Independent Directors, play a critical role in
imparting balance to the Board processes by bringing The ITC Board is a balanced Board, comprising
independent judgement on issues of strategy, Executive and Non-Executive Directors. The
performance, resources, standards of Company Non-Executive Directors include independent
conduct etc. professionals. At least one-third of the total strength
of the Board was required to comprise Independent
Executive Director: The Executive Director assists the Directors, as on 31st March, 2019.
Board in realising its role of strategic supervision of the
The Governance Policy of the Company, inter alia,
Company in pursuit of its purpose and goals. As a
requires that Non-Executive Directors be drawn from
member of the CMC, the Executive Director contributes amongst eminent professionals, with experience in
to the strategic management of the Company’s business / finance / law / public administration and
businesses within Board approved direction / framework. enterprises. The Board Diversity Policy of the Company
An Executive Director accountable to the Board for a requires the Board to have balance of skills, experience
business, assumes overall responsibility for its and diversity of perspectives appropriate to the Company.
strategic management, including governance processes The skills, expertise and competencies of the Directors
and top management effectiveness. Similarly, as as identified by the Board, are provided in the Annexure
Director accountable to the Board for a corporate forming part of this Report. These skills, expertise and
function, the overall strategic responsibility for its competencies are available in the present mix of the
performance forms part of the Executive Director’s role. Directors of the Company.
In the context of the multi-business character of the In terms of the Articles of Association of the Company,
Company, an Executive Director is in the nature of a the strength of the Board shall not be fewer than five
Managing Director for those businesses and functions nor more than eighteen. The present strength of the
reporting to him. Board is thirteen, including the Chairman & Managing
Director, three other Executive Directors and six
CMC Member: The CMC Member contributes to the
Non-Executive Independent Directors, of which two
strategic management of the Company’s businesses
are Women Directors.
within Board approved direction / framework. A CMC
Member accountable for a business, assumes Composition of the Board as on 31st March, 2019:
responsibility for its strategic management, including
Category No. of Percentage to
governance processes and top management Directors total no. of Directors
effectiveness. Similarly, where accountable for a
corporate function, the overall strategic responsibility for Executive Directors 4 29
its performance forms part of the CMC Member’s role. Non-Executive Independent Directors 6 42
Divisional Chief Executive: The Divisional Chief Other Non-Executive Directors 4 29
Executive for a business has the executive responsibility
for its day-to-day operations and provides leadership to Total 14 100

12 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

Director Category No. of No. of Membership(s) / Board Agenda

other Chairmanship(s) of Meetings are governed by a structured agenda. The
Directorship(s)* Audit Committee / Board members, in consultation with the Chairman, may
Stakeholders bring up any matter for the consideration of the Board.
Relationship All major agenda items are backed by comprehensive
Committee of other background information to enable the Board to take
Indian public limited
companies informed decisions. Agenda papers are generally circulated
seven to fourteen days prior to the Board meeting.
Y. C. Deveshwar # Chairman & 6 Nil
Non-Executive Director Information placed before the Board
S. Puri $ Managing Director 4 Nil In addition to matters required to be placed before the
N. Anand Executive Director 8 1 Board under the Governance Policy of the Company,
the following are also tabled for the Board’s periodic
B. Sumant Executive Director 1 Nil
review / information:
R. Tandon Executive Director & 9 3
• Annual operating plans & budgets and periodic review
Chief Financial Officer [all as
Chairman] of the Company’s businesses.
S. Banerjee Independent Director Nil Nil • Quarterly performance including business-wise

A. Duggal Independent Director 6 5 financials.

[including 3 • External Audit Management Reports (through the
as Chairman] Audit Committee).
S. B. Mathur Independent Director 9 8 • Status of safety and legal compliance.
[including 2 • Status and effectiveness of risk management plans.
as Chairman]
• Succession to senior management (through the
N. Rao Independent Director 2 1
Nomination & Compensation Committee).
S. S. H. Rehman Independent Director Nil Nil
• Statutory compliance reports from business
M. Shankar Independent Director 3 2 units / corporate functions.
H. Bhargava Non-Executive Director - 14 Nil • Show cause / demand / prosecution / adjudication
Representative of Life
notices, if any, from revenue authorities which are
Insurance Corporation of
India as Investor considered materially important, including any
exposure that exceeds 1% of the Company’s net
J. Pulinthanam Non-Executive Director - 1 Nil
worth, and their outcome.
Representative of General
Insurers’ (Public Sector) • Significant court judgement or order passing strictures,
Association of India as if any, on the conduct of the Company or a subsidiary
Investor of the Company or any employee, which could
D. R. Simpson Non-Executive Director - 3 Nil negatively impact the Company’s image.
Representative of • Product liability claims of a substantial nature, if any.
Tobacco Manufacturers • Default, if any, in payment of dues to any major
(India) Limited, a
subsidiary of British
creditor.
American Tobacco p.l.c. • Write-offs / disposals (fixed assets, inventories,
as Investor receivables, advances etc.) on a half-yearly basis.
# Passed away on 11th May, 2019. • Significant development in Human
$ Appointed also as the Chairman of the Company with effect from 13th May, 2019. Resources / Industrial Relations.
* Details with respect to other Directorships of the Directors are provided under the • Material non-compliance of any regulatory or listing
section ‘Your Directors’ in the Report and Accounts, other than for Mr. Y. C. Deveshwar
requirements and in relation to shareholders’ services.
who amongst others was an Independent Director of Air India Limited, debt securities of
which are listed on recognised stock exchange(s). • All other matters required to be placed before
the Board for its review / information under the
Meetings and Attendance Listing Regulations 2015 and other statutes.
The Company’s Governance Policy requires the Board Post-meeting follow-up system
to meet at least five times a year. The intervening period The Governance processes in the Company include an
between two Board meetings was well within the maximum effective post-meeting follow-up, review and reporting
gap of 120 days prescribed under the Listing Regulations process for action taken / pending on decisions of the
2015. The tentative annual calendar of meetings is Board, the Board Committees, the CMC and the DMCs.
broadly determined at the beginning of each year.

ITC Limited REPORT AND ACCOUNTS 13

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Report on Corporate Governance

Details of Board Meetings during the financial year COMMITTEES OF THE BOARD
During the financial year ended 31st March, 2019, Currently, there are five Board Committees – the Audit
eight meetings of the Board were held, as follows: Committee, the Nomination & Compensation Committee,
the Securityholders Relationship Committee, the CSR
Sl. Date Board No. of and Sustainability Committee and the Independent
No. Strength Directors Directors Committee. The terms of reference of the
present Board Committees are determined by the Board from
1 13th April, 2018 12 11 time to time, other than the Independent Directors
Committee the terms of reference of which have been
2 16th May, 2018 12 11 adopted as prescribed under law. Meetings of
3 26th July, 2018 12 12 Board Committees are convened by the respective
Committee Chairman. Matters requiring the Board’s
4 27th July, 2018 12 11
attention / approval, as emanating from the Board
5 10th August, 2018 13 12 Committee meetings, are placed before the Board with
clearance of the Committee Chairman. All the
6 26th October, 2018 13 11
recommendations made by Board Committees during
7 15th November, 2018 13 12 the year were accepted by the Board. Minutes of Board
8 23rd January, 2019 14 13
Committee meetings are placed before the Board for its
information. The role and composition of these
Attendance at Board Meetings and at Annual General Committees, including the number of meetings held
Meeting (AGM) during the financial year during the financial year and the related attendance, are
provided below.
Director No. of Board Attendance at last
meetings attended AGM I. AUDIT COMMITTEE
The Audit Committee of the Board provides reassurance
Y. C. Deveshwar 1 8 Yes to the Board on the existence of an effective internal
S. Puri 8 Yes control environment that ensures:
• efficiency and effectiveness of operations, both
N. Anand 8 Yes domestic and overseas.
B. Sumant 2 1 N.A. • safeguarding of assets and adequacy of provisions
for all liabilities.
R. Tandon 8 Yes
• reliability of financial and other management
S. Banerjee 8 Yes information and adequacy of disclosures.
H. Bhargava 3 4 N.A. • compliance with all relevant statutes.
The role of the Committee includes the following:
A. Duggal 8 Yes
(a) To oversee the Company’s financial reporting process
S. B. Mathur 8 Yes and the disclosure of its financial information to
ensure that the financial statements are correct,
J. Pulinthanam 4 2 No sufficient and credible;
N. Rao 6 Yes (b) To recommend the appointment, remuneration and
removal of Statutory and Cost Auditors;
S. S. H. Rehman 8 Yes
(c) To approve transactions of the Company with related
M. Shankar 8 Yes parties;
D. R. Simpson 8 Yes (d) To evaluate the Company’s internal financial controls
and risk management systems;
S. B. Mainak 5 0 N.A.
(e) To review with the management the following:
1. Passed away on 11th May, 2019. (i) Annual financial statements and Auditor’s Report
2. Appointed Executive Director w.e.f. 16th November, 2018.
3. Appointed Non-Executive Director w.e.f. 28th July, 2018.
thereon before submission to the Board for
4. Appointed Non-Executive Director w.e.f. 16th May, 2018. approval;
5. Resigned as Non-Executive Director w.e.f. 24th July, 2018.

14 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

(ii) Quarterly financial statements before submission Committee are financially literate; three members,
to the Board for approval; including the Chairman of the Committee, have
accounting and financial management expertise.
(f) To review the following:
(i) Management discussion and analysis of financial The names of the members of the Audit Committee,
including its Chairman, are provided under the section
condition & results of operations, and
‘Board of Directors and Committees’ in the Report
matters required to be included in the
and Accounts.
Directors’ Responsibility Statement;
(ii) Adequacy of internal control systems and the Meetings and Attendance
Company’s statement on the same prior to Details of Audit Committee Meetings during the
endorsement by the Board, such review to be financial year
done in consultation with the management,
During the financial year ended 31st March, 2019,
Statutory and Internal Auditors;
eight meetings of the Audit Committee were held,
(iii) Adequacy of internal control systems for as follows:
compliance with the provisions of the Securities
and Exchange Board of India (Prohibition of Sl. Date Committee No. of
Insider Trading) Regulations, 2015; No. Strength Members
present
(iv) Reports of Internal Audit and discussion with
Internal Auditors on any significant findings and 1 3rd May, 2018 4 3
follow-up thereon;
(v) Statutory Auditors’ independence and 2 16th May, 2018 4 3
performance, and effectiveness of the
3 26th July, 2018 3 3
audit process;
(vi) System for storage, retrieval, security etc. 4 11th October, 2018 4 4
of books of account maintained in the
electronic form; 5 26th October, 2018 4 4
(vii) Functioning of Whistleblower mechanism
in the Company; 6 14th January, 2019 4 4

(viii) Financial statements, including investments, of

7 23rd January, 2019 4 4
unlisted subsidiary companies;
(ix) Utilisation of loans and / or advances and 8 14th March, 2019 4 4
investments by the Company to / in the
subsidiary companies.
Attendance at Audit Committee Meetings during the
Composition financial year

The Audit Committee presently comprises four Member No. of meetings attended
Non-Executive Directors, three of whom are Independent
S. B. Mathur 8
Directors. The Chairman of the Committee is an
Independent Director. The Executive Director & Chief
H. Bhargava 1 5
Financial Officer, the Head of Internal Audit and
the representative of the Statutory Auditors are Invitees
A. Duggal 8
to meetings of the Audit Committee. The Head of
Internal Audit is the Coordinator and the Company S. S. H. Rehman 8
Secretary is the Secretary to the Committee.
The representatives of the Cost Auditors are invited to S. B. Mainak 2 0
meetings of the Audit Committee whenever matters
relating to cost audit are considered. All members of the 1. Appointed Member w.e.f. 28th July, 2018.
2. Ceased to be Member w.e.f. 24th July, 2018.

ITC Limited REPORT AND ACCOUNTS 15

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Report on Corporate Governance

II. NOMINATION & COMPENSATION COMMITTEE Remuneration Policy

The Nomination and Remuneration Committee of the ITC’s Remuneration Policy aims at attracting and retaining
Board, under the nomenclature ‘Nomination & high calibre talent. The Remuneration Policy, therefore,
Compensation Committee’, inter alia, identifies persons is market-led and takes into account the competitive
qualified to become Directors and formulates criteria for
circumstance of each business so as to attract and retain
evaluation of performance of the Directors and the
Board as a whole. The Committee’s role includes quality talent and leverage performance significantly.
recommending to the Board the appointment, remuneration The Company adopts a comprehensive approach to
and removal of the Directors and senior management. remuneration in order to support a superior quality of
The Committee also has the responsibility for administering personal and work life, combining both cash and
the Employee Stock Option Schemes of the Company. non-cash components / benefits, in a manner which
judiciously balances short term and long term priorities.
Composition
The Nomination & Compensation Committee presently The Company’s Policy on remuneration of Directors,
comprises three Independent Directors and the Chairman Key Managerial Personnel and other employees, as
of the Company. The Chairman of the Committee is an approved by the Board, may be accessed on its corporate
Independent Director. The Company Secretary is the website at https://www.itcportal.com/about-itc/
Secretary to the Committee. policies/remuneration-policy.pdf. There has been no
The names of the members of the Nomination & change in the Policy during the year.
Compensation Committee, including its Chairman, are
provided under the section ‘Board of Directors and Remuneration of Directors
Committees’ in the Report and Accounts.
Remuneration of the Managing Director and the other
Meetings and Attendance Executive Directors is determined by the Board, on the
recommendation of the Nomination & Compensation
Details of Nomination & Compensation Committee
Meetings during the financial year Committee, subject to the approval of the Shareholders.
The Managing Director and the other Executive Directors
During the financial year ended 31st March, 2019,
are entitled to performance bonus for each financial year
six meetings of the Nomination & Compensation
Committee were held, as follows: up to a maximum of 300% and 200% of their
basic / consolidated salary, respectively, as may be
Sl. Date Committee No. of determined by the Board, on the recommendation of the
No. Strength Members Nomination & Compensation Committee; such
present
remuneration is linked to the performance of the Company
1 16th May, 2018 5 4 inasmuch as the performance bonus is based on various
2 26th July, 2018 4 4 qualitative and quantitative performance criteria.
3 10th August, 2018 4 4
Non-Executive Directors, including Independent Directors,
4 26th October, 2018 4 4 are entitled to remuneration by way of commission for
5 15th November, 2018 4 4 each financial year, ranging between ` 70,00,000/- and
6 23rd January, 2019 4 4 ` 1,00,00,000/- individually, as approved by the
Shareholders. Non-Executive Directors’ commission is
Attendance at Nomination & Compensation determined by the Board, based inter alia on Company
Committee Meetings during the financial year
performance and regulatory provisions and is payable
Member No. of meetings attended on a uniform basis to reinforce the principle of collective
S. Banerjee 6 responsibility. Mr. Y. C. Deveshwar, in view of his enlarged
Y. C. Deveshwar 1 6 role, was entitled to additional remuneration and benefits
S. S. H. Rehman 6 as approved by the Shareholders. Non-Executive
M. Shankar 6 Directors are also entitled to sitting fees for attending the
meetings of the Board and its Committees. The sitting
S. B. Mainak 2 0
fees as determined by the Board are ` 1,00,000/- for
1. Passed away on 11th May, 2019.
each meeting of the Board, ` 50,000/- for each meeting
2. Ceased to be Member w.e.f. 24th July, 2018.

16 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

of the Audit Committee, Nomination & Compensation Employee Stock Option Schemes
Committee, CSR and Sustainability Committee and The Company granted 6,88,425 Options during the
Independent Directors Committee, and ` 10,000/- for financial year to certain eligible employees and Directors
each meeting of the Securityholders Relationship of the Company, other than Independent Directors.
Committee. Non-Executive Directors are also entitled Each Option entitles the holder thereof to apply for and
to coverage under Personal Accident Insurance. be allotted ten Ordinary Shares of the Company of ` 1/-
each upon payment of the exercise price during the
Details of Remuneration paid to the Directors during exercise period. The exercise period commences from
the financial year ended 31st March, 2019 the date of vesting of the Options and expires at the end
(` in Lakhs) of five years from the date of such vesting.
Director Basic/ Perquisites / Performance Sitting Total Options granted vest as per the following schedule:
Consolidated other Bonus / Fees On completion of 12 months from
Salary / Benefits Commission the date of grant of the Options : 30% vests
Remuneration
On completion of 24 months from
Y. C. Deveshwar 1 1200.00 389.80 60.00 12.50 1662.30 the date of grant of the Options : 30% vests
S. Puri 144.00 40.00 432.00 - 616.00 On completion of 36 months from
N. Anand 101.87 68.70 192.00 - 362.57 the date of grant of the Options : 40% vests
B. Sumant 2 36.00 9.30 - - 45.30 # Shares and Options of Directors
R. Tandon 96.00 32.22 192.00 - 320.22 Director No. of Ordinary Shares No. of Options granted
S. Banerjee - - 60.00 11.50 71.50 of ` 1/- each held during the
(singly / jointly) financial year
H. Bhargava 3 - - - 7.00 * 7.00
as on 31st March, 2019
A. Duggal - - 60.00 12.50 72.50
Y. C. Deveshwar # 4,45,950 10,000
S. B. Mathur - - 60.00 12.50 72.50
J. Pulinthanam 4 - - - 2.60 * 2.60 S. Puri 87,500 2,16,000

N. Rao - - 60.00 7.50 67.50 N. Anand Nil 1,08,000

S. S. H. Rehman - - 60.00 16.50 76.50 B. Sumant 2,08,057 39,400 *
M. Shankar - - 60.00 13.00 73.00 R. Tandon 1,83,750 1,08,000
D. R. Simpson - - 60.00 9.50 69.50
S. Banerjee Nil Nil
Z. Alam 5 - - 58.03 * - 58.03
H. Bhargava Nil Nil
S. B. Mainak 6 - - 60.00 * - 60.00
A. Duggal Nil Nil
A. Malik 7 - - 18.41 * - 18.41
P. B. Ramanujam 8 - - 20.05 @ - 20.05 S. B. Mathur 1,70,500 Nil

# Subject to J. Pulinthanam Nil Nil

the approval of the Shareholders.
* Paid to the Public Financial Institution the Director represents / represented. N. Rao Nil Nil
@ Paid to Mrs. S. Ramanujam, spouse of Late P. B. Ramanujam.

1. Passed away on 11th May, 2019. S. S. H. Rehman 32,790 Nil

2. Appointed Executive Director w.e.f. 16th November, 2018.
3. Appointed Non-Executive Director w.e.f. 28th July, 2018. M. Shankar Nil Nil
4. Appointed Non-Executive Director w.e.f. 16th May, 2018.
D. R. Simpson Nil Nil
5. Resigned as Non-Executive Director w.e.f. 20th March, 2018.
# Passed
6. Resigned as Non-Executive Director w.e.f. 24th July, 2018. away on 11th May, 2019.
7. Appointed Non-Executive Director w.e.f. 11th April, 2017 and resigned w.e.f. 1st August, 2017. * Options granted prior to appointment as Executive Director.
8. Resigned as Non-Executive Director w.e.f. 1st August, 2017. Note: Options were granted at ‘market price’ as defined under the Securities and Exchange Board
Note: Disclosure with respect to Non-Executive Directors - Pecuniary relationship or transaction: None. of India (Share Based Employee Benefits) Regulations, 2014.

The structure, processes and practices of governance are

designed to support effective management of multiple
businesses while retaining focus on each one of them.

ITC Limited REPORT AND ACCOUNTS 17

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Report on Corporate Governance

Service Contract, Severance Fee and Notice Period Meetings and Attendance
The appointment of the Managing Director and the other Details of Securityholders Relationship Committee
Executive Directors is governed by resolutions passed Meetings during the financial year
by the Board and the Shareholders of the Company, During the financial year ended 31st March, 2019,
which cover the terms and conditions of such appointment nineteen meetings of the Securityholders Relationship
read with the service rules of the Company. A separate Committee were held, as follows:
Service Contract is not entered into by the Company
with those elevated to the Board from the management Sl. Date Committee No. of
cadre, since they already have a Service Contract with No. Strength Members
the Company. Letters of appointment have been issued present
by the Company to the Independent Directors,
1 13th April, 2018 3 3
incorporating their roles, duties, responsibilities etc.,
which have been accepted by them. 2 3rd May, 2018 3 3
There is no separate provision for payment of severance 3 16th May, 2018 3 3
fee under the resolutions governing the appointment of
4 13th June, 2018 3 2
Executive Directors who have all been drawn from
amongst the management cadre. The statutory provisions 5 16th July, 2018 3 2
will however apply. With respect to notice period of
6 26th July, 2018 3 3
Directors, the statutory provisions will also apply.
7 2nd August, 2018 4 3
Performance Evaluation
Performance evaluation of the Board, the Board 8 10th August, 2018 4 3
Committees and the individual Directors was carried out 9 24th September, 2018 4 3
by the Board in accordance with the Policy approved by
the Nomination & Compensation Committee in this 10 10th October, 2018 4 3
regard; brief details of the same are provided in the 11 26th October, 2018 4 3
‘Report of the Board of Directors & Management
Discussion and Analysis’, forming part of the 12 15th November, 2018 4 4
Report and Accounts. 13 21st November, 2018 4 3

III. SECURITYHOLDERS RELATIONSHIP COMMITTEE 14 6th December, 2018 4 2

The Stakeholders Relationship Committee of the Board, 15 19th December, 2018 4 2

under the nomenclature ‘Securityholders Relationship 16 23rd January, 2019 4 3
Committee’, oversees redressal of shareholder and
investor grievances and, inter alia, approves transmission 17 14th February, 2019 4 3
of shares, sub-division / consolidation / renewal of share 18 14th March, 2019 4 4
certificates, issue of duplicate share certificates etc. and
allotment of shares upon exercise of Options under the 19 19th March, 2019 4 2
Company’s Employee Stock Option Schemes.
Attendance at Securityholders Relationship
Composition
Committee Meetings during the financial year
The Securityholders Relationship Committee
presently comprises four Directors. The Chairman of the Member No. of meetings attended
Committee is an Independent Director. The Company S. S. H. Rehman 10
Secretary is the Secretary to the Committee.
J. Pulinthanam 1 6
The names of the members of the Securityholders
Relationship Committee, including its Chairman, are S. Puri 19
provided under the section ‘Board of Directors and R. Tandon 19
Committees’ in the Report and Accounts.
1. Appointed Member w.e.f. 28th July, 2018.

18 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

IV. CSR AND SUSTAINABILITY COMMITTEE Attendance at CSR and Sustainability Committee
Meetings during the financial year
The role of the CSR Committee of the Board, under the
nomenclature ‘CSR and Sustainability Committee’, is Member No. of meetings attended
inter alia to review, monitor and provide strategic direction Y. C. Deveshwar 1 3
to the Company’s CSR and sustainability practices
H. Bhargava 2 1
towards fulfilling its triple bottom line objectives. The
3
Committee seeks to guide the Company in integrating J. Pulinthanam 0
its social and environmental objectives with its business N. Rao 2
strategies and assists in crafting unique models to support M. Shankar 3
creation of sustainable livelihoods. The Committee
D. R. Simpson 3
formulates & monitors the CSR Policy and recommends
to the Board the annual CSR Plan of the Company. S. B. Mainak 4 0
1. Passed away on 11th May, 2019.
Composition 2. Appointed Member w.e.f. 28th July, 2018.
3. Appointed Member w.e.f. 16th May, 2018.
The CSR and Sustainability Committee presently 4. Ceased to be Member w.e.f. 24th July, 2018.
comprises the Chairman of the Company and
five Non-Executive Directors, two of whom are
V. INDEPENDENT DIRECTORS COMMITTEE
Independent Directors. The Chairman of the Company
is the Chairman of the Committee. The Company The statutory role of the Independent Directors Committee
of the Board is to review the performance of the
Secretary is the Secretary to the Committee.
non-Independent Directors, including the Chairman of
The names of the members of the CSR and the Company, and the Board, and also to assess the
Sustainability Committee, including its Chairman, are quality, quantity and timeliness of flow of information
provided under the section ‘Board of Directors and between the Company management and the Board.
Committees’ in the Report and Accounts. Composition
Meetings and Attendance The Independent Directors Committee comprises all
the Independent Directors of the Company, whose names
Details of CSR and Sustainability Committee are provided under the section ‘Board of Directors
Meetings during the financial year and Committees’ in the Report and Accounts.
During the financial year ended 31st March, 2019, Meetings and Attendance
three meetings of the CSR and Sustainability Committee
Details of Independent Directors Committee Meeting
were held, as follows: during the financial year

Sl. Date Committee No. of During the financial year ended 31st March, 2019,
No. Strength Members one meeting of the Independent Directors Committee
present was held, as follows:

1 13th April, 2018 5 4 Sl. Date Committee No. of

No. Strength Members
2 16th May, 2018 5 4 present
3 26th October, 2018 6 4 1 13th April, 2018 6 6

The CSR and Sustainability Committee provides strategic

direction to the Company’s CSR and Sustainability practices
towards fulfilling its Triple Bottom Line objectives.

ITC Limited REPORT AND ACCOUNTS 19

2019
Report on Corporate Governance

Attendance at Independent Directors Committee Details of Corporate Management Committee

Meeting during the financial year Meetings during the financial year
During the financial year ended 31st March, 2019,
Member No. of meeting attended forty one meetings of the CMC were held, as follows:
S. Banerjee 1
Sl. Date Committee No. of
A. Duggal 1 No. Strength Members
present
S. B. Mathur 1
1 2nd April, 2018 9 8
N. Rao 1
2 30th April, 2018 9 9
S. S. H. Rehman 1 3 11th May, 2018 9 7
M. Shankar 1 4 14th & 15th June, 2018 9 9
5 11th, 12th ,13th & 16th July, 2018 9 8
6 24th July, 2018 9 9
CORPORATE MANAGEMENT COMMITTEE 7 7th August, 2018 9 9
8 18th August, 2018 9 9
The primary role of the CMC is strategic management
9 22nd & 23rd August, 2018 9 8
of the Company’s businesses within Board approved
10 13th September, 2018 9 9
direction / framework and realisation of Company 11 25th, 26th & 27th September, 2018 9 9
goals. The CMC, inter alia, formulates the Company’s 12 12th October, 2018 9 8
business plans and organisational policies, systems & 13 15th October, 2018 9 7
processes, reviews business performance against 14 10th November, 2018 9 8
approved plans and operates under the strategic 15 22nd & 23rd November, 2018 9 8
supervision and control of the Board. 16 17th & 18th December, 2018 9 9
17 15th January, 2019 9 8
Composition 18 5th February, 2019 8 8
19 5th February, 2019 8 8
The CMC presently comprises all the Executive Directors
20 6th February, 2019 8 8
and four senior members of management. The
21 11th February, 2019 8 7
Chairman & Managing Director of the Company is the
22 11th February, 2019 8 7
Chairman of the Committee. The composition of the 23 12th February, 2019 8 8
CMC is determined by the Board on the recommendation 24 15th February, 2019 8 8
of the Nomination & Compensation Committee. The 25 21st February, 2019 8 7
Company Secretary is the Secretary to the CMC. 26 21st & 22nd February, 2019 8 8
27 22nd February, 2019 8 8
The names of the members of the CMC, including
28 26th & 27th February, 2019 8 8
its Chairman, are provided under the section
29 27th February, 2019 8 6
‘Board of Directors and Committees’ in the Report
30 4th, 5th, 11th, 12th, 13th & 26th March, 2019 8 8
and Accounts. 31 5th March, 2019 8 7
32 11th March, 2019 8 8
Meetings and Attendance
33 13th March, 2019 8 8
Matters requiring the Board’s attention / approval are 34 18th March, 2019 8 7
placed in the form of notes from the relevant 35 18th March, 2019 8 7
Executive Director / CMC Member, backed by 36 20th March, 2019 8 6
comprehensive background information, along with 37 20th March, 2019 8 6
DMC’s recommendation / approval, where applicable. 38 22nd March, 2019 8 8
39 25th March, 2019 8 8
Minutes of CMC meetings are placed before the Board
40 29th March, 2019 8 8
for its information.
41 29th March, 2019 8 8

20 ITC Limited REPORT AND ACCOUNTS

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 Report on Corporate Governance

Attendance at Corporate Management Committee Attendance at Risk Management Committee

Meetings during the financial year Meetings during the financial year

Member No. of meetings attended Member No. of meetings attended

S. Puri 41 S. Puri (Chairman) 3
N. Anand 37 N. Anand 3
B. Sumant 38 B. Sumant 3
R. Tandon 40 R. Tandon 3
C. Dar 38 S. Sivakumar 3
S. K. Singh 36 Invitee No. of meetings attended
S. Sivakumar 39 M. Ganesan 1 3
K. S. Suresh 37 S. K. Singh 3
1
R. Sridhar 16 R. Parasuram 2 N.A.
1. Ceased to be Member on retirement w.e.f. 5th February, 2019. 1. Invitee to the Committee w.e.f. 4th May, 2018.
2. Ceased to be Invitee on retirement w.e.f. 4th May, 2018.
RISK MANAGEMENT COMMITTEE
The role of the Risk Management Committee, constituted SUBSIDIARY COMPANIES
pursuant to the Listing Regulations 2015, is inter alia to All subsidiaries of the Company are managed by their
approve the strategic risk management framework of
respective Board of Directors in the best interest of those
the Company, and review the risk mitigation strategies
and results of risk identification, prioritisation & mitigation companies and their shareholders. Pursuant to the
plans for all business units / corporate functions, as also Listing Regulations 2015, the minutes of Board meetings
the measures taken for cyber security. of the subsidiary companies and details of significant
Composition transactions and arrangements entered into by them
The Risk Management Committee presently comprises are placed before the Board of Directors of the Company.
all the Executive Directors and some senior members The financial statements of the subsidiary companies
of management. The Chairman & Managing Director of are reviewed by the Audit Committee of the Company.
the Company is the Chairman of the Committee. The Performance review reports of wholly owned subsidiaries
Head of Internal Audit is an Invitee to meetings of the are also placed before the Board of Directors of the
Committee and the Chief Risk Officer is the Secretary
Company on a half-yearly basis.
to the Committee.
The names of the members of the Risk Management The Company does not have any material subsidiary.
Committee, including its Chairman, are provided below. The Company’s Policy for determination of a material
Meetings and Attendance subsidiary, as approved by the Board, may be accessed
Details of Risk Management Committee Meetings on its corporate website at https://www.itcportal.com/
during the financial year about-itc/policies/policy-on-material-
During the financial year ended 31st March, 2019, subsidiaries.aspx.
three meetings of the Risk Management Committee
were held, as follows: FAMILIARISATION PROGRAMME FOR
Sl. Date Committee Strength No. of Members DIRECTORS
No. (including Invitees) & Invitees
present
ITC believes that a Board, which is well informed /
familiarised with the Company and its affairs, can
1 13th August, 2018 7 7
contribute significantly to effectively discharge its role of
2 24th December, 2018 7 7 trusteeship in a manner that fulfils stakeholders’
3 6th March, 2019 7 7 aspirations and societal expectations. In pursuit of this,

ITC Limited REPORT AND ACCOUNTS 21

2019
Report on Corporate Governance

the Directors of the Company are updated on handling investor grievances. The website has entire
changes / developments in the domestic / global sections dedicated to ITC’s profile, history and
corporate and industry scenario including those pertaining evolution, its core values, corporate governance and
to statutes / legislations & economic environment and leadership. An exclusive section on ‘Shareholder
on matters affecting the Company, to enable them to Value’ serves to inform and service Shareholders,
take well informed and timely decisions. Visits to enabling them to access information at their
Company facilities are also organised for the Directors. convenience. The entire Report and Accounts as well
Further details may be accessed on the Company’s as the quarterly, half-yearly and annual financial
corporate website at https://www.itcportal.com/about- results are available in downloadable formats under
itc/leadership/images/directors-familiarisation-
the section ‘Shareholder Value’ on the Company’s
programme.pdf.
corporate website as a measure of added convenience
to the investors. The ‘Media Centre’ section includes
MEANS OF COMMUNICATION
all major media releases from the Company and
Timely disclosure of consistent, comparable, relevant relevant media reports.
and reliable information on corporate financial
performance is at the core of good governance. • The Report of the Board of Directors, forming part of
Towards this end - the Report and Accounts, includes all aspects of
Management Discussion and Analysis as required
• The quarterly financial results of the Company
under the Listing Regulations 2015.
were announced within a month from the end of the
quarter. Audited annual results along with the results
for the fourth quarter were announced within
ITC CODE OF CONDUCT
sixty days from the end of the financial year. Extract The ITC Code of Conduct, adopted by the Board of
of these results were published, inter alia, in Directors, is applicable to Directors, senior management
‘The Times of India’ and ‘Aajkal’ / ‘Bartaman’ from and employees of the Company. The Code is derived
Kolkata, and on an all India basis in major from three interlinked fundamental principles, viz. good
newspapers, and also in ‘Luxemburger Wort’, corporate governance, good corporate citizenship and
Luxembourg; annual results were also published in exemplary personal conduct in relation to the Company’s
‘Financial Times’, London. Further, quarterly results, business and reputation. The Code covers ITC’s
shareholding pattern and other material events & commitment to CSR and sustainable development,
important information relating to the Company were
concern for occupational health, safety and environment,
submitted to the Stock Exchanges through NSE
a gender friendly workplace, transparency and auditability,
Electronic Application Processing System (NEAPS)
legal compliance and the philosophy of leading by
and BSE Listing Centre, for dissemination on their
personal example. The Code is available on the
respective websites. The Company publishes its
Company’s corporate website.
quarterly, half-yearly and annual financial results and
also posts such results on its corporate website
www.itcportal.com. The Company’s presentations Declaration as required under the Listing
on the results, quarterly results updates along with Regulations 2015
FAQs are also made available on the said website.
All Directors and senior management of the Company
• The Company’s corporate website provides have affirmed compliance with the ITC Code of Conduct
comprehensive information on ITC’s portfolio of for the financial year ended 31st March, 2019.
businesses, CSR and sustainability initiatives, EHS
performance, shareholding pattern, key Company S. Puri
Policies, and contact details of the Company’s Chairman &
Gurugram, 13th May, 2019. Managing Director
employees responsible for assisting investors &

22 ITC Limited REPORT AND ACCOUNTS

2019
 Report on Corporate Governance

WHISTLEBLOWER POLICY • None of the Directors of the Company has been

Synopsis of the Whistleblower Policy of the Company debarred or disqualified from being appointed or
is provided in the ‘Report of the Board of Directors & continuing as a Director by SEBI / Ministry of
Management Discussion and Analysis’, forming part of Corporate Affairs / Statutory Authorities, which has
the Report and Accounts. The Whistleblower Policy is also been confirmed by Messrs. S. M. Gupta & Co.,
also available on the Company’s corporate website. Practising Company Secretaries.

POLICY ON RELATED PARTY TRANSACTIONS • Confirmation by the Board with respect to the
Independent Directors is provided in the ‘Report of
The Policy, as approved by the Board, may be accessed
the Board of Directors & Management Discussion
on the Company’s corporate website at
https://www.itcportal.com/about-itc/policies/policy- and Analysis’, forming part of the Report
on-rpt.aspx. and Accounts.
• Disclosures in relation to the Sexual Harassment
ITC CODE OF CONDUCT FOR PREVENTION OF of Women at Workplace (Prevention, Prohibition
INSIDER TRADING - 2019
and Redressal) Act, 2013 are provided in the
The ITC Code of Conduct for Prevention of Insider ‘Business Responsibility Report’, forming part of
Trading, approved by the Board of Directors, inter alia, the Report and Accounts.
prohibits trading in securities of the Company by Directors
and employees while in possession of unpublished price • Information with respect to ‘Commodity Price Risk
sensitive information in relation to the Company. or Foreign Exchange Risk and Hedging Activities’ is
provided in the ‘Report of the Board of Directors &
OTHER DISCLOSURES Management Discussion and Analysis’ and in the
• Details of non-compliances, penalties and ‘Notes to the Financial Statements’, forming part of
strictures by Stock Exchanges / SEBI / Statutory the Report and Accounts.
Authorities on any matter related to capital markets
In view of the diversified business portfolio of the
during the last three years:
Company, its exposure in none of the individual
None
commodities which are sourced either for use
• Inter-se relationships between Directors and Key as inputs in its businesses or for agri-commodity
Managerial Personnel of the Company: trading, is material in the context of its overall
None operations, and also in terms of the ‘Policy for
• Materially significant related party transactions which determination of materiality of events and
may have potential conflict with the interests of the information for disclosure to the Stock Exchanges’,
Company at large: as approved by the Board. Accordingly, the disclosure
None requirements prescribed under the SEBI Circular
• Material financial and commercial transactions of dated 15th November, 2018 are not applicable
senior management, where they may have had for the Company.
personal interest, and which had potential conflict
• The total fees paid by the Company and its
with the interests of the Company at large:
subsidiaries to Messrs. Deloitte Haskins & Sells,
None
Statutory Auditors of the Company, and all other
• Details of utilisation of funds raised through preferential
entities forming part of the same network,
allotment or qualified institutions placement:
aggregate ` 6.79 crores.
Not Applicable
• Compliance Officer under the Listing
• Credit rating(s) obtained by the Company for any debt
instrument, fixed deposit programme or any other Regulations 2015:
scheme involving mobilisation of funds: R. K. Singhi, Executive Vice President &
None Company Secretary

ITC Limited REPORT AND ACCOUNTS 23

2019
Report on Corporate Governance

DISCRETIONARY REQUIREMENTS UNDER THE 3. Shareholder Rights: The quarterly, half-yearly

LISTING REGULATIONS 2015 and annual financial results of the Company
are posted on the Company’s corporate website
The status of compliance with the discretionary
requirements under the Listing Regulations 2015 is and extract of these results are published in
provided below: newspapers on an all India basis. Significant events
are also posted on the Company’s website
1. Separate posts of Chairman and Chief Executive
under the ‘Media Centre’ section. The complete
Officer: The Company has a diversified business
Annual Report is sent to every Shareholder
portfolio, which demands that the senior
leadership has in-depth knowledge and understanding of the Company.
of the functioning of the Company, so as to enhance 4. Audit Opinion: It has always been the Company’s
the value-generating capacity of the organisation endeavour to present financial statements with
and contribute significantly to stakeholders’ aspirations
unmodified audit opinion i.e. without any qualification.
and societal expectations.
The Statutory Auditors have issued an unmodified
It may be recalled that Mr. Y. C. Deveshwar, at the audit opinion on the Company’s financial statements
request of the Nomination & Compensation
for the year ended 31st March, 2019.
Committee and the Board, had agreed to continue
as Chairman in non-executive capacity, as an interim 5. Internal Audit: The Head of Internal Audit reports to
measure, for orderly transition in a company of ITC’s the Audit Committee of the Board.
size and complexity and to provide guidance and
mentorship to the new executive management which GENERAL SHAREHOLDER INFORMATION
was planned to be put in place.
Provided in the ‘Shareholder Information’ section of the
Accordingly, as on 31st March, 2019, the Company
Report and Accounts.
had a Chairman in non-executive capacity and a
Managing Director.
CONFIRMATION OF COMPLIANCE
Consequent to the demise of Mr. Deveshwar on
11th May, 2019, the Board, on the recommendation It is confirmed that the Company has complied
of the Nomination & Compensation Committee, with the requirements prescribed under
appointed Mr. S. Puri, Managing Director, also as Regulations 17 to 27 and clauses (b) to (i) of
the Chairman of the Company with effect from sub-regulation (2) of Regulation 46 of the
13th May, 2019. Listing Regulations 2015. The Statutory Auditors’
2. Chairman’s Office: During the year ended Certificate that the Company has complied with the
31st March, 2019, Chairman’s Office was maintained conditions of Corporate Governance is annexed to the
by the Company and expenses towards performance ‘Report of the Board of Directors & Management
of the Chairman’s duties were borne by the Discussion and Analysis’, forming part of the
Company / reimbursed to him. Report and Accounts.

Notes:
1. Reference to Division / Divisional Business includes Strategic Business Unit (SBU), Business Vertical and Shared Services.
2. Reference to Divisional Management Committee includes SBU Management Committee, Shared Services Management Committee and Executive Committee for
Business Vertical.
3. Reference to Divisional Chief Executive includes Heads of SBU, Business Vertical and Shared Services.

Inherent in the concept of trusteeship is the responsibility

to ensure equity, namely, that the rights of all shareholders,
large or small, are protected.

24 ITC Limited REPORT AND ACCOUNTS

2019
 Report on Corporate Governance

ANNEXURE TO THE REPORT ON CORPORATE GOVERNANCE Ability to appreciate and critique the need for in-depth specialisation
across business critical areas such as manufacturing,
SKILLS, EXPERTISE AND COMPETENCIES OF DIRECTORS marketing, legal, information technology, public advocacy etc.,
ITC believes that it is the collective effectiveness of the Board that as well as the breadth of general management capabilities.
impacts Company performance and therefore members of the Board 4. Stakeholder Value Creation
amongst themselves should have a balance of skills, experience and
Ability to understand processes for shareholder value creation
diversity of perspectives appropriate to the Company.
and its contributory elements and critique interventions towards
Given the Company’s size, scale and diversified nature of its value creation for the other stakeholders.
businesses, the Directors should possess one or more of the following
5. Commercial Acumen
skills, expertise and competencies:
Commercial acumen to critique the Company’s financial
1. Organisational Purpose performance and evaluate the Company’s strategies and action
Ability to comprehend the socio-economic, political, regulatory plans in the context of their financial outcomes.
and competitive environment, both domestic and global, in which 6. Risk Management and Compliance
the Company is operating and insight to identify opportunities
Ability to appreciate key risks impacting the Company’s businesses
and threats for the Company’s businesses.
and contribute towards development of systems and controls
Ability to contribute towards creating an inspiring Vision for the for risk mitigation & compliance management and review and
Company with superordinate societal goals and appreciate the refine the same periodically.
Company’s triple bottom line philosophy of building synergy
7. Policy Evaluation
between serving the society and creating economic value
for the Company. Ability to comprehend the Company’s governance philosophy
and contribute towards its refinement periodically.
2. Strategic Insight
Ability to evaluate policies, systems and processes in the
Ability to evaluate competitive corporate and business strategies context of the Company’s businesses, and review the
and, based thereon, contribute towards progressive refinement same periodically.
of the Company’s strategies for fulfilment of its goals.
8. Culture Building
Ability to comprehend strategy of organisation of a diversified
Ability to contribute to the Board’s role towards promoting an
company like ITC, in the context of its unique sources of competitive
ethical organisational culture, eliminating conflict of interest,
advantage and assess its strengths and weaknesses.
and setting & upholding the highest standards of ethics,
3. Organisational Capacity Building integrity and organisational conduct.

Acumen to evaluate organisational capacity and readiness across 9. Board Cohesion

relevant parameters and provide guidance on bridging gaps in Ability to comprehend the statutory roles and responsibilities of
capacity building. a Director and of the Board as a whole.
Ability to understand the talent market and the Company’s talent Ability to encourage and sustain a cohesive working environment
quotient so as to help finetune strategies to attract, retain and and to listen to multiple views and thought processes and
nurture competitively superior talent. synergise a range of ideas for organisational benefit.

*****************

ITC Limited REPORT AND ACCOUNTS 25

2019