The Company administers various funds in respect
of Employees’ Retirement Benefit Schemes through duly constituted and approved
independent trusts. However, Provident Fund and Family Pension contributions in respect of
unionised staff, as required by the statutes, are statutorily deposited with the
Government.
The Company has been making dividend payments consistently over the past several years
with dividends increasing from Rs.10 per share in 2001 to Rs.31 per share in 2005. The
retained profits of the Company increased to Rs.1,309.70 crores in 2005 from Rs.1,034.02
crores in 2004.
ITC is a debt-free company with no long-term borrowings and negligible
short-term borrowings.
Cost of Goods Sold (Rs. Crores)
The monetary flows include the outlay for purchase of raw materials,
purchase of finished goods from third parties, and contract manufacturing charges, mainly
for cigarettes, agri products and other goods. The primary raw materials are
unmanufactured tobacco, agri products, waste paper and pulp, |
 |
chemicals for paperboard and paper, board, filter
rods etc. The indigenous content of raw materials consumed is upwards of 80% of the value
of consumption. The cost of goods is determined after adjusting the opening and closing
stocks of raw materials and finished goods with the purchase value of raw materials,
finished goods and contract manufacturing charges. The finished goods stock consists
mainly of cigarettes, paperboards and specialty paper, agri products etc.
Raw Materials Consumed (Rs. Crores)
The Company’s policy is to state inventories, including work-in-progress, at cost
or below. The cost is calculated on the basis of the weighted average method. Cost
comprises expenditure incurred, in the normal course of business, in bringing such
inventories to their location and includes, where applicable, appropriate overheads based
on normal level of activity. Obsolete, slow moving and defective inventories are
identified at the time of physical verification and, where necessary, provision is made
for such inventories.
Apart from raw materials, stores and spares are consumed in the normal course of
manufacture where the indigenous content in terms of value is nearly 70%.
Stores & Spares Consumed (Rs. Crores)
A large part of raw materials purchased and supplies procured are through immediate
payment or through letters of credit. The efficiency of accounting system has been
improved to enable speedy processing of payments to vendors and suppliers. |
