ITC crossed yet another performance milestone with Post-Tax profits exceeding the Rs. 1000 crore mark, registering a substantial growth of 27%. Pre-Tax profits grew by 30% to Rs. 1600 crores. The Company continues its conservative approach to income tax provisioning relating to certain State taxes, the collection of which has been stayed by appropriate Courts. Earnings per share touched a new high of Rs.41.00 (Rs.32.29 last year). The ITC Board at its meeting on 30^th May, 2001 recommended a Dividend of Rs.10.00 per share (last year: Rs. 7.50 per share)

These impressive results were achieved, despite sluggish business conditions, through continuous value addition to products and services, quality upgradation, strengthening of the goodwill of the Company’s trademarks, improvements in productivity and continuous focus on cost management. As a result of these actions, the Company’s net trading margins have increased to 40% from 35% recorded last year. The Company continued its policy of debt retirement and completed the repayment of the balance of its foreign currency loan during the year. The full impact of the debt retirement programme, which commenced last year, reflected in a further reduction of Rs.28 crores in interest cost during the year.

The Company consolidated its leadership position in the cigarette industry by pursuing its strategy of continuous value addition, resulting in an enriched product mix. The Company’s contribution to the Exchequer grew by over 10% to nearly Rs.5100 crores during the year.

The Company’s seven-star super deluxe hotel, the 'ITC Grand Maratha Sheraton' at Mumbai opened in January, 2001. The hotel has been well received by guests. The construction of 'ITC Sonar Bangla' at Kolkata and 'ITC Grand Towers', Upper Worli in Mumbai is making steady progress. These premium Hotels are expected to open their doors to guests by the end of 2002. The Company has also acquired 8 acres of prime land in Chennai in order to tap the long-term potential of this fast growing market.

Agri exports grew by nearly 12% to Rs.362 crores in spite of a decline in India’s agri exports for the third successive year. Project 'e-Choupal', a pioneering click and mortar initiative of the International Business Division to link the Indian farmer with domestic and world markets, has been rapidly scaled up to 235 choupals covering 1000 villages in the three chosen commodities, namely soya, coffee and aqua.

The Company’s Packaging and Printing business continued to maintain its status as a premier supplier of high quality printed paperboard-based packaging for the FMCG industry, particularly for the premium packaging of cigarettes, liquor, foods and personal care products. In an acknowledgement of its world class capability, exports grew by 35%.

The newly formed Greeting Cards SBU has made rapid progress by establishing the presence of its 'EXPRESSIONS' range of cards in over 7000 outlets in around 180 towns across the country. The SBU has entered into a licensing arrangement for designs with Simon Elvin Ltd., one of UK’s leading greeting card publishers.

The 'Wills Sport' range of relaxed wear for men and women has been well received by discerning customers. The Company is currently in the process of scaling up its operations to over 50 exclusive outlets across the country by March 2002, of which around 25 outlets are scheduled to open in the next four months.

The Board of Directors, at its meeting held on 30^th May 2001 approved the audited financial results for the year ended 31^st March, 2001 which are annexed.

  Notes:

(i) The above results were taken on record at the meeting of the Board of Directors of the Company held on 30th May, 2001.

(ii) Figures of the previous year have been rearranged wherever necessary.

(iii) Provision for Taxation includes adjustments relating to previous years being excess net provision for tax Rs. 41.62 Crores (previous year Rs. 55.12 Crores).

(iv) The Board of Directors of the Company has recommended a dividend of Rs. 10.00 per Ordinary share for the financial year ended 31st March, 2001 and the dividend, if declared, will be paid on or after 6th August, 2001 to those members entitled thereto.

(v) The Register of Members of the Company will be closed for the purpose of dividend from 18th July, 2001 to 3rd August, 2001 (both days inclusive).

(vi) The 90th Annual General Meeting of the Company has been convened for 3rd August, 2001