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EXECUTIVE SUMMARY

   Tobacco in India:- 

    India is the third producer of tobacco in the world after china. It produces 572
million kg of tobacco in 2002-2003. India only holds a major 0.7% share of the US
$30 billion global import – export trade in tobacco, with cigarettes/cigarette tobacco
accounting for 85% of the country, s total tobacco export.
       
The tobacco o industry holds tremendous potential for India. For the
government, it means excise duties and export revenues, and for the country in
general, it translate into huge employment opportunity. Despite being the third
largest producer, India is only the ninth largest exporter of tobacco and tobacco
products in the world. Out of total tobacco produced  in India , only 1/3 is flue/cured
tobacco suitable for cigarette manufacturing .Most of tobacco produced in suitable
for the manufacture of chewing tobacco , bides and other chip tobacco products ,
which have no demand outside the country . There is only an export demand for flue-
cured tobacco, which is used for cigarette manufacturing. 
       
The production of tobacco is integral to the economies of a number of Indian
state and regions where it is grown. Tobacco is predominantly grown in Andhra
Pradesh, Gujarat, Karnataka and Uttar Pradesh. Andhra Pradesh and Karnataka
traditionally produce flue-cured leaf. Growing of tobacco is a very lucrative owing to
its short growing session and the profitability in relation to other cash crops. 

           As can be seen from the pie chart one (below), Indian consumption of
tobacco does not follow western trends with 38% of tobacco being consumed as
bidi’s , 48% as chewing tobacco and  only 14%as cigarettes that is bidis , snuff and
chewing tobacco such as ghutka , khaini and zard form the bulk (86%) of Indians
total tobacco production . this low percentage of consumption in cigarettes of
14%compares to 90% in the rest of the world . in fact the per capita consumption of
cigarette in India nearly 1/10th of the world average .
         The unique tobacco consumption pattern is a combination of tradition and more
importunately the discriminatory tax impose on cigarette over the last two decades.
Cigarette smoker pay almost 85 %( Rs 5181crore) of the total tax revenues
generated from tobacco. This discriminatory tax is justified on the ground that it is a
“luxury” tax. This is a misnomer because it is the discriminatory tax which is causing
the difference in price between cigarette and other tobacco products.

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Company Details

COMPANY -             ITC Limited

Type-                          Public (BSE:500875)
Industry-                   Conglomerate
Founded -                  1790 (as Wills & Co.)
Founders -                 Henery Overton Wills 
Headquarters-          37, J.L. Nehru Road , Kolkata, west Bengal
Key People -             Y.C. Deveshwar, Chairman
                                  Kurush Grant, Exec. Director,
                                  P. Dhobale, Exec. Director,
                                 Nakul Anand, Exec. Director,
                                 Rajiv Tandon, CFO,
Website –                www. itcportal.com

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INTRODUCTION
ITC Limited is an Indian multinational conglomerate company
headquartered in Kolkata, West Bengal. Established in 1910 as the Imperial Tobacco
Company of India Limited, the company was renamed as the India Tobacco Company
Limited in 1970 and later to I.T.C. Limited in 1974. The company now stands renamed to ITC
Limited, where "ITC" today is no longer an acronym or an initialised form. ITC has a
diversified presence across industries such
as Cigarettes, FMCG, Hotels, Packaging, Paperboards & Special Papers and Agribusiness.
The company completed 100 years in 2010 and as of 2019–20, had an annual turnover of
US$10.74 billion and a market capitalisation of US$35 billion. It employs over 36,500 people
at more than 60 locations across India and is part of the Forbes 2000 list.

ITC Ltd (ITC) was incorporated on August 24, 1910, under the name Imperial
Tobacco Company of India Ltd. to make cigarettes and tobacco. In 1975, the
company entered the hospitality business with the acquisition of ITC–Welcome
group Hotel Chola. the name of the Company was changed to I.T.C. Limited in 1974.
In recognition of the Company's multi–business portfolio encompassing a wide range
of businesses – Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri–Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery – the full stops in the Company's name were removed
effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.

ITC is one of India's foremost private sector companies with a market capitalisation
of nearly US $ 14 billion and a turnover of over $ 5 billion. ITC is rated among the
World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine, among India's Most Respected Companies by
Business World and among India's Most Valuable Companies by Business Today.
ITC ranks among India's `10 Most Valuable (Company) Brands', in a study
conducted by Brand Finance and published by the Economic Times. ITC also ranks
among Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers, Packaging, Agri–Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other
FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri–Exports, it is
rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's
most valuable and respected corporations, ITC is widely perceived to be dedicatedly
nation–oriented.

ITC's Agri–Business is one of India's largest exporters of agricultural products. ITC is

one of the country's biggest foreign exchange earners ( $ 3.2 billion in the last
decade). The Company's 'e–Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through the
power of the Internet. This transformational strategy, which has already become the

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subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd,
provides IT services and solutions to leading global customers. ITC Infotech has
carved a niche for itself by addressing customer challenges through innovative IT
solutions.
Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
centre of the Company's existence. The Company celebrated its 16th birthday on
August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now
renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the
Company was historic in more ways than one. It was to mark the beginning of a long
and eventful journey into India's future. The Company's headquarter building,
'Virginia House', which came up on that plot of land two years later, would go on to
become one of Kolkata's most venerated landmarks. The Company's ownership
progressively Indianised, and the name of the Company was changed to I.T.C.
Limited in 1974.

The full stops in the Company's name were removed effective September 18, 2001.
The Company now stands rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily devoted to
the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the
Seventies witnessed the beginnings of a corporate transformation that would usher
in momentous changes in the life of the Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. It is today India's most sophisticated
packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC–Welcomgroup Hotel Chola'. The objective of
ITC's entry into the hotels business was rooted in the concept of creating value for
the nation. ITC chose the hotels business for its potential to earn high levels of
foreign exchange, create tourism infrastructure and generate large scale direct and
indirect employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread across
India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13,
2002 and became a Division of the Company, Bhadrachalam Paperboards Division.
In November 2002, this division merged with the Company's Tribeni Tissues Division
to form the Paperboards & Specialty Papers Division. ITC's paperboards'
technology, productivity, quality and manufacturing processes are comparable to the
best in the world. It has also made an immense contribution to the development of
Sarapaka, an economically backward area in the state of Andhra Pradesh. It is
directly involved in education, environmental protection and community
development. In 2004, ITC acquired the paperboard manufacturing facility of BILT

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Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit
allows ITC to improve customer service with reduced lead time and a wider product
range. 

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo–Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American
Tobacco and various independent shareholders in Nepal. In August 2002, Surya
Tobacco became a subsidiary of ITC Limited and its name was changed to Surya
Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing

company and a major supplier of tissue paper to the cigarette industry. The merged
entity was named the Tribeni Tissues Division (TTD). To harness strategic and
operational synergies, TTD was merged with the Bhadrachalam Paperboards
Division to form the Paperboards & Specialty Papers Division in November 2002.

 Also in 1990, leveraging its agri–sourcing competency, ITC set up the Agri Business
Division for export of agri–commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e–Choupal initiative began in
2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering
over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was
inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars'
are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar
Pradesh.
 In 2000, ITC forayed into the Greeting, Gifting and Stationery products business
with the launch of Expressions range of greeting cards. A line of premium range of
notebooks under brand “Paperkraft” was launched in 2002. To augment its offering
and to reach a wider student population.

The popular range of notebooks was launched under brand “Classmate” in 2003.
“Classmate” over the years has grown to become India’s largest notebook brand and
has also increased its portfolio to occupy a greater share of the school bag. Years
2007– 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens
and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as
the Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the “Paperkraft” Brand.
“Paperkraft” offers a diverse portfolio in the premium executive stationery and office
consumables segment. Paperkraft entered new categories in the office consumable
segment with the launch of Textliners, Permanent Ink Markers and White Board
Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the
popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills
Lifestyle became title partner of the country's most premier fashion event – Wills
Lifestyle India Fashion Week – that has gained recognition from buyers and retailers
as the single largest B–2–B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Celebration Series', taking the event forward to

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consumers. In 2007, the Company introduced 'Miss Players'– a fashion brand in the
popular segment for the young woman.

In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of India’s fastest growing global
IT and IT–enabled services companies and has established itself as a key player in
offshore outsourcing, providing outsourced IT solutions and services to leading
global customers across key focus verticals – Manufacturing, BFSI (Banking,
Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail),
THT (Travel, Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully

blending multiple internal competencies to create a new driver of business growth. It
began in August 2001 with the introduction of 'Kitchens of India' ready–to–eat Indian
gourmet dishes. In 2002, ITC entered the confectionery and staples segments with
the launch of the brands mint–o and Candyman confectionery and Aashirvaad atta
(wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered
the biscuits segment. ITC's entered the fast growing branded snacks category with
Bingo! in 2007.
In just seven years, the Foods business has grown to a significant size with over
200 differentiated products under six distinctive brands, with an enviable distribution
reach, a rapidly growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the

entire value chain found yet another expression in the Safety Matches initiative. ITC
now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega
and Aim Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis
brands include Spriha and Mangaldeep across a range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchamp.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &
body care products for men and women in July 2005. Inizio, the signature range
under Essenza Di Wills provides a comprehensive grooming regimen with distinct
lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its
tradition of bringing world class products to Indian consumers the Company
launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps
in September, October and December 2007 respectively. The Company also
launched the 'Superia' range of Soaps and Shampoos in the mass–market segment
at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in
February and Vivel range of shampoos in June 2008.

The company completed 100 years in 2010 and as of 2019–20, had an annual
turnover of US$10.74 billion and a market capitalisation of US$35 billion. It employs
over 36,500 people at more than 60 locations across India and is part of the Forbes
2000 list.

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OBJECTIVES OF THE STUDY
• To study the idea, preference towards ITC products.
• To study the purchase pattern towards ITC products.
• To study the level of satisfaction towards ITC products.
• To offer suggestion on the basis of find of the study.

Towards Indianisation and business diversification

The company was converted into a Public Limited Company on 27 October 1954.
The first step towards Indianization was taken in the same year with 6% of Indian
shareholding of the company. ITC also became the first Indian company to foray into
consumer research during this time. During the 1960s, technology was given more
focus on setting up of cigarette machinery and filter-rod manufacturing facilities
aimed at achieving self-sufficiency in cigarette-making.

Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was
crucial in building up the Indian management for the company. As the company's
ownership was progressively Indianised, under Haskar's leadership, the name of the
company was changed from "Imperial Tobacco Company of India Limited" to "India
Tobacco Company Limited" in 1970. ITC also became the first company in India to
start from the 1971 Scissor's Cup. Innovative market campaigns and electronic data
processing were started in the 1970s.
In 1973, ITC set up its integrated research center in Bangalore, aimed at
diversification and venturing into newer businesses with research and development.
With the unfolding diversification plans, the name of the company was changed to
'I.T.C. Limited' in 1974. The Indian shareholding grew further to 40% during this time.
ITC entered into the hospitality sector with hotel business in 1975 with the acquisition
renaming of ITC Welcomgroup Hotel Chola in Madras. ITC chose the hospitality
sector for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large-scale direct and indirect employment.
The shareholding went over 60% in 1976 and more hotels were started by the
company in the following years. ITC Sangeet Research Academy was set up at
Calcutta in 1977. In 1979, ITC entered the paperboards business by promoting ITC
Bhadrachalam Paperboards Limited. J N Sapru took over as the company's
chairman in 1983 and the international expansion started with the acquisition of
Surya Nepal Private Limited in 1985. The year 1986 saw vigorous moves from the
company with the opening of an Indian restaurant in the city of New York, acquisition
and renaming of Vishvarama Hotels to ITC Hotels Limited, setting up of two new
ventures – the ITC Classic Finance Limited and ITC Agro Tech Limited under its

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umbrella. ITC also entered into the edible oils industry with the launch of the
Sundrop brand of cooking oils in 1988. Tribeni Tissues Limited was acquired in
1990. K L Chugh assumed the role of chairman in 1991 and ITC Global Holding
Private limited was started as an international trading company in Singapore in 1992.
In 1994, all the hotels under the company were transferred into the listed subsidiary
company ITC Hotels Limited. ITC, through the brand Wills, sponsored the 1996
Cricket World Cup.
Y.C. Deveshwar took over as the company's chairman in 1996 and the corporate
governance structure was re-crafted to support the effective management of multiple
businesses. ITC exited from edible oils business and financial services; sold the ITC
Classic Finance Limited to ICICI Limited and handled the Sundrop business to
ConAgra Foods Limited in 1998. In the year 2000, an innovative initiative for farmers
called "e-Choupal" was started in Madhya Pradesh in 2000. The same year
witnessed the launch of ITC's Wills Sport range of casual wear with first retail outlet
in New Delhi and ITC's entry into stationery products and gifting business introducing
the 'Expressions' range of greeting cards and Classmate notebooks. A wholly owned
information technology subsidiary, ITC Infotech India Limited was also started in
2000 and the ITC Bhadrachalam Paperboards Limited was merged into ITC Limited.
The name of the company was changed to "ITC Limited" omitting the dots and
adapting the strategy "No stops for ITC" in 2001. An employee stock option scheme
was introduced for the first time and a web portal for the company was launched.
Subsidiaries for ITC Infotech were set up at United Kingdom and the USA.
On 27 July 2020, ITC has acquired 100 per cent of the equity share capital of
Sunrise Foods in a 2150 crore deal. Consequent to it, Sunrise and its two
subsidiaries, Sunrise Sheetgrah Private Ltd and Hobbits International Foods Pvt Ltd,
have become wholly owned subsidiaries of ITC, it added. Sunrise is a market leader
in eastern India in the fast-growing spices category and has a brand legacy of over
70 years.

Entry into the Hospitality Sector

The Seventies witnessed the beginnings of a corporate transformation that would

usher in momentous changes in the life of the Company. In 1975, the Company
launched its Hotels business with the acquisition of a hotel in Chennai which was
rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).
The objective of ITC's entry into the hotels business was rooted in the concept of
creating value for the nation. ITC chose the Hotels business for its potential to earn
high levels of foreign exchange, create tourism infrastructure and generate large
scale direct and indirect employment. Since then ITC's Hotels business has grown to
occupy a position of leadership, with over 100 owned and managed properties
spread across India under four brands namely, ITC Hotels - Luxury Collection,
WelcomHotels, Fortune Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with
an upcoming super premium luxury hotel in Colombo, Sri Lanka. In addition, ITC

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Hotels also recently tied up with RP Group Hotels & Resorts to manage 5 hotels in
Dubai and India under ITC Hotels' 5-star 'WelcomHotel' brand and the mid-market to
upscale 'Fortune' brand.

Milestones of ITC
 ITC was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India Limited'.

 In 1975 through its acquisition of a hotel in Chennai , the company launched

its hotel business by the name 'ITC–Welcomgroup Hotel Chola'.

 In 1979 it entered into manufacturing paperboards, packaging & printing

business.

 In 1985 it set up Surya Tobacco Co. in Nepal, now a subsidiary of ITC.

 In 1990 ITC set up the Agri Business Division for export of agri–commodities
based on partnership with farmers, for revolutionizing the rural agricultural
sector.

 In 2000, ITC launched a line of greeting cards  under the brand name
‘Expressions’.

 There has been further extension in productline with introduction of gift

wrappers, autograph books slam books and stationery.

 In 2000, it entered in lifestyle retailing business with the Wills Sport, a range of
international quality wear for men and women.

 ITC InfoTech India was set up in 2000 to provide outsourcing solutions to

manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R
(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and
Transportation) and media & entertainment.

 ITC entered food business in 2001, its product line in this segment consist of 
brands 'Kitchens of India', ‘Aashirvaad atta’, ‘Candyman’, ‘Sunfeast’ &
‘Bingo!’.

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  In 2002 it entered in marketing of matches, ITC now markets popular safety
matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

 In 2003 ITC's forayed into the marketing of Agarbattis (incense sticks),

creating brands like Mangaldeep, Spriha, Aim Metro and so on.

 ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and

bath & body care products for men and women in July 2005.

 The Company also launched the 'Superia' range of Soaps and Shampoos in
the mass–market segment at select markets in October 2007 and Vivel De
Wills & Vivel range of soaps in February and Vivel range of shampoos in June
2008.

 In 2013– ITC  Hotels  tied up with RP Group Hotels & Resorts to manage 5 
hotels in India and Dubai, under ITC Hotels’ 5–star ‘WelcomHotel’ brand and
the group’s mid–market to upscale ‘Fortune’ brand.

Achievements/ recognition:

 In 2014 –ITC has been voted among the top two  “Buzziest Brands” in the
“Corporate” category by “afaqs”, one of  the world’s largest marketing and
advertising portals.

 2013 – ITC Infotech becomes the 1st PTC Authorized Training Partner in
India
ITC Hotels ties up with RP Group Hotels & Resorts to manage 5 hotels in
India and Dubai

 Fiama Di Wills Launches Second Edition of Couture Spa Range of Gel

Bathing Bars

 In 2012– Mr Y C Deveshwar, Chairman, ITC Limited has been ranked the  7th
Best Performing CEO in the World in the global  scorecard on '100 Best
Performing CEOs in the World' published by the Harvard  Business Review
(HBR) in its January–February 2013 edition.

 ITC Bags Asian CSR Award–2012

 ITC Infotech collaborates with Oracle to develop the Oracle Airline Data
Model, partof Oracle's Passenger Data Management solution for the Airline
Industry
ITC launches its iconic hotel in Chennai

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  2011– ITC Hotels adjudged 'People's Choice – Most Trusted Hotel Brand'

 2011 –ITC Infotech launches first indigenously developed sustainability

management and reporting tool

 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter
of Cigarettes for 2008 by the Tobacco Board based on previous three years'
performance.

 Occupational Health and Safety Award 2007 for Excellence in Safety

Management to the Bengaluru, Saharanpur and Kolkata factories from the
Royal Society for Prevention of Accidents (ROSPA), U.K.

 5 Star Health and Safety Rating in 2007 from the British Safety Council to the
Bengaluru, Munger, Kolkata and Saharanpur factories and the 'Sword of
Honour' for Bengaluru & Saharanpur factories in 2006.

 Greentech Gold Award for excellence in Safety Management for the year
2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the
high level of performance that the units have achieved in Environment Health
and Safety (EHS). Saharanpur along with Kolkata and Munger factories were
honoured with the Gold award and the Bengaluru Factory with the Platinum
Award in 2006.
 Greentech Gold Award for Excellence in Environment Management 2007 to
the Bengaluru, Kolkata and Munger factories.

 Safety Innovation Award for 2007 and 2006 for Innovative Safety
Management System to the Bengaluru Factory from the Institution of
Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC
Karnataka Chapter.

 Golden Peacock Award for Occupational Health and Safety from the Institute
of Directors, New Delhi; Award for Outstanding Performance in Environment
Health and Safety from the CII and the Suraksha Puraskar Award from the
National Safety Council, Mumbai to the Kolkata factory in 2007 and the '1st
National Security Today Award ' in the category of Best Maintained Fire
Safety System in 2005.

 Occupational Health and Safety Gold Award from the ROSPA, UK; the
Winners Trophy – Safety Health and Environment Award from the CII Eastern
region; National Award for Excellence in Water Management and Innovative
Project Award Initiatives for Energy Conservation from the CII to the Munger
factory in 2007 and also the Excellence in Water Management Award from
CII–GBC for 2006.

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  All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001,
for their Environment Management Systems, OHSAS 18001 for their
Occupational Health and Safety Management Systems (OHSMS) and the ISO
9000–2000 for Quality Management Systems. The Kolkata factory is the first
cigarette factory in India to be awarded the SA 8000 Certificate for Social
Accountability by Det Norske Veritas (DNV) in June 2004.

 ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first
independent R&D centre in India to get ISO 9001 accreditation and certified
with ISO 14001 for Environment Management Systems by DNV. The R&D
Centre is also certified for the standard ISO/IEC17025:2005, by National
Accreditation Board for Testing and Calibration Laboratories (NABL). This
certification is awarded for 'General requirement for the competence of
Testing & Callibration Laboratories'.

 2010
ITC launched its handrolled cigar, Armenteros, in the Indian market.
Armenteros cigars are available exclusively at tobacco selling outlets in select
hotels, fine dining restaurants and exclusive clubs.
ITC’s Bhadrachalam Facility gets coveted Forest Stewardship Council
Certification
Vivel Launches Deo Spirit to turn the heat on! 
USIBC honours Y C Deveshwar with its Global Leadership Award
ITC Infotech Achieves Platinum Partner status in the Oracle(R)
PartnerNetwork
ITC Infotech Launches Services for Life Sciences Industry 

 2012 ITC CONFERRED WORLD BUSINESS AND DEVELOPMENT AWARD

2012

 2007– SAM/SPG Sustainability Leadership Award conferred at the

International Sustainability Leadership Symposium, Zurich.

 2006  Business Person of the Year from UK Trade & Investment, the UK
Government organisation that supports overseas businesses in that country.

 2006  Inducted into the `Hall of Pride' by the 93rd Indian Science Congress.

 2005 – Honoured with the Teacher's Lifetime Achievement Award.

 2001 – Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail trade
magazine.

 1998 – Honorary Fellowship from the All India Management Association

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  1996 – Distinguished Alumni Award from IIT, Delhi.

 1994 – Marketing Man of the Year from A&M, the leading marketing
magazine.

 1986 – Meridien Hotelier of the Year.

BUSINESSES

 Fast Moving Consumer Goods (FMCG)

 Hotels

 Paperboards & Specialty Papers

 Packaging

 Agri-Business

 Information technology

 Group Companies

Products and brands

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 Cigarettes
ITC Ltd sells 81% of the Cigarettes, Bidis in India, where 275 million people use
tobacco products and the total cigarette market is worth close to around
Rs. 757399.4 million.
ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold
Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic
(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild & Ultra
Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players,
Flake and Duke & Royal, wave.

Foods
ITC's major food brands include Aashirvaad, Sunrise Foods, Sunfeast, Bingo!,
Kitchens of India, Sunfeast YiPPee!, B Natural, mint-o, Candyman, GumOn,
Fabelle, Sunbean, Sunfeast Wonderz Milk, ITC Master Chef, Farmland. ITC is
India's largest seller of branded foods with of over Rs. 4,600 crore in 2012–13. It
is present across 6 categories in the food business including snack foods, ready-
to-eat meals, fruit juices, dairy products and confectionery.

Personal care products

ITC's personal care products line includes perfumes, haircare and skincare
categories. Major brands are Fiama Di Wills, Vivel, Savlon Soap & Handwash,
Essenza Di Wills, Superia and Engage.

Stationery
Brands include Classmate, PaperKraft and Colour Crew. Launched in 2003,
Classmate went on to become India's largest notebook brand in 2007.

Safety Matches and Agarbattis

Aim brands of safety matches and the Mangaldeep brand of agarbattis (Incense
Sticks).

Paperboard
Products such as specialty paper, graphic and other paper are sold under the ITC
brand by the ITC Paperboards and Specialty Papers Division like Classmate
product of ITC, well known for their quality.

Packaging and Printing

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 ITC's Packaging and Printing division operates manufacturing facilities
at Haridwar and Chennai and services domestic and export markets.

Information Technology
ITC operates through its fully owned subsidiary ITC Infotech India Limited.

Dairy Products
ITC also has started Dairy Products. Currently, Dairy products are marketed
under Brand name Sunfeast Wonderz Milk which are flavored milk. However,
they are not yet in the regular daily usage milk business.

ITC BISCUITS
In India the biscuit industry was started in the middle of the 19 century. In 1887,
the first bakery was set up in India. There were four factories during Second
World War. The Second World War helped the industry to prosper with an
increases need for its products both for military and civilian consumption. After
Second World War the biscuit production in India increased rapidly. The total
production of biscuit in India is estimated to be around 50 lakhs Metric Ton Now
there are more than 31 units in the organized sectors but also there are many
small-scale industries involved in biscuits productions. Biscuit making is made
adaptable to small-scale units because of the simple manufacturing process,
easy availability of raw materials and the low cost involved in its production. The
ingredients that go in its production are wheat,flour, leaving ageing, permitted,
emulsifier, and flavor and dough conditioners. India is ranked third after USA and
China amongst the global biscuits producers.

Employees

As per the Annual report of the company, it had 25,963 employees as on 31

March 2013, out of which 3,043 were women. It spent Rs. 2,145 crores on
Employee benefits during the FY 2012–13. During the same year, its attrition rate
was 12%.
ITC's Chairman Y C Deveshwar  won renowned awards and recognition
including Padma Bhushan from Govt. of India 2005–09, by Boston Consulting
Group and seventh-best-performing CEO in the world by Harvard Business
Review.

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 Meera Shankar, Indian ambassador to the USA between 2009 and 2011, joined
the board of ITC Limited in 2012 as the first woman director in its history. She is
an additional non-executive director of the company.

Customer Satisfaction Towards ITC Products

ITC has rapidly scaled up presence in its newer FMCG businesses comprising
branded packaged foods, Lifestyle, Retailing, Education and stationery products,
Personal Care products, Safety Matches and Incense sticks i.e. Agarbatti, at an
impressive pace over the last several years, crossing Rs. 7000 cores mark in the
year 2014 ITC is one of India’s foremost private sector companies with a market
capitalization of US $ 45 billion and a turnover of us $ 7 billion. ITC is rated among
the World’s Best Big companies, Asia’s ‘Fab 50’ and the World’s Most Reputable
companies by Forbes magazine and among India’s Most Valuable Companies by
Business Today. ITC ranks among India’s 10 Most Valuable (company) Brands’, in a
study conducted by Brand conducted by Brand Finance and published by the
Economics Times. ITC also ranks among Asia’s50 best performing companies
compiled by Business Week.
The competitiveness of ITC’s diverse businesses rest on the strong foundations of
institutional strengths derived from its deep consumer insights, cutting-edge
Research & Development, differentiated product development capacity, brand-
building capability, world-class manufacturing infrastructure, extensive rural linkages,
efficient trade marketing and distribution network and dedicated human resources.
ITC’s ability to leverage internal synergies residing across its diverse businesses
lends a unique source of competitive advantage to its products and services.
Today ITC is the country’s leading FMGC marketer, the clean market leader in the
Indian paperboard and Packaging industry, a globally acknowledged pioneer in
farmer empowerment through its wide-reaching Agri- Business, the second largest
Hotel Chain in India and a trailblazer in ‘green hoteliering’. ITC InfoTech, a wholly-
owned subsidiary, is one of India’s fast-growing IT companies in the mid-tier
segment. This portfolio of rapidly growing businesses considerably enhances ITC’s
capacity to generate value for the Indian economy.

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STATEMENT OF THE PROBLEM
ITC product are every liked by most of the consumers all over India. The competitive
environment problem the company to so for quality and innovative products which
can captured victory in the day to day life of the common people. It is to see the
customer prefer worthy ITC products through have are different brands with same
feature and therefore the researcher aimed to study why the customer prefer ITC
product and what are the functions do the consumers make before purchasing such
product which related in the study of consumer satisfaction towards the ITC product
is identified and the problem of the study.

LITERATURE REVIEW
As stated earlier, there has been very little research on corporate governance
particularly in India prior to 2000. Some researchers in their individual capacities
tried to explore the subject and did some findings; they did not apply it to large
organizations. Most of the earlier advancements were made in countries with
developed corporate culture like USA, UK, Germany and Japan etc. The researchers
initially were keen to see whether there is any relation between good corporate
governance and profitability or their research focused on issues related to protection
of the interest of minority shareholders. Some agree that even competition is the
best mechanism for achieving economic efficiency through minimization of the cost,
the importance of corporate governance cannot be overlooked.
1.Chatterjee Debabrata (2010) did a comparative study on Corporate Governance
and Corporate Social Responsibility – The case of Three Indian Companies ITC Ltd.,
Reliance Industries Ltd., and Infosys Technologies Ltd. He concluded that though
the corporate governance practices are exemplary, there exist differences in the way
the companies adopt the corporate governance practices. He rated Infosys better
than the other two companies.
2. Mohamad Wan Adilah Wan Izyani , Sulong Zunaidab (2010) did a
comprehensive study on Corporate Governance Mechanisms and Extent of
Disclosure: Evidence from listed companies in Malaysia has revealed that
companies with a higher percentage of family members, on the board, significantly
have lower level of disclosure in annual report. It has been suggested that regulators
like Bussa Malaysia and Securities Commission should review and impose a
minimum level of family members on the board and Malaysian regulators should
implement the same guidelines.
3. Thrikawala Sujani, et. al (2011) in their research Corporate Governance –
performance relationship in Microfinance Institutions suggested that it is important to
determine those corporate governance practices that have great impact on MFI
performance. It has also made an advanced contribution to the understanding of
corporate governance practices in MFI, identifying and developing an appropriate

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governance structure. It has also provided guidance for selecting directors for MFI
Boards based on their academic and professional qualifications.
4. Klai Nedsine & Omri Abdeluabed (2011) in the investigation conducted in
Tunisia titled Corporate Governance and Financial Reporting Quality: The case
ofTunisian Firms, the observation was that the Tunisian firms are featured by the
lack of board independence and high level of ownership concentration. It has also
concluded in it that corporate governance affects the accounting quality in the
Tunisian context. It was observed that there is a link between corporate governance
and accounting quality in corporate firms in Tunisia.
5. Kajanathan Rajendran (2012) did a study in Sri Lanka titled Effect of corporate
Governance on Capital Structure. Investigation was made on the impact of corporate
governance on capital structure of Sri Lankan manufacturing firms. It was concluded
that corporate governance has important implications on the financing decisions of
Sri Lankan manufacturing firms.
6. Bihari Suresh Chandra (2012) conducted the study Corporate Governance is
key to Better Corporate Image: A study in the Banking Sector in India. It has been
concluded that there is a need for a strong culture of compliance at the top of the
organization and necessary to consider how management can respond to ethical or
reputation concerns. The biggest challenge in India is to implement the rules of
corporate governance at the ground level. It is required to extend the principles of
good corporate governance practices to co-operatives, Non-banking Private
Companies and other financial institutions.
7. Feizizadeh Ahmed (2012), Faculty Member Of Azad Islamic University, North
Branch Tehran, Iran in his study “Corporate governance: Frameworks “concluded
that corporate social ethical and environmental performances are being viewed
increasingly by investors as indicators of management quality and proxies for
performance in other areas of the business. A good company must have good
environmental management system. The extent to which companies satisfy the
needs of a divergent group of stakeholders can also lead to the satisfaction of
ultimate objective of shareholder’s wealth maximization.
8. Mulyadi Martin Surya, Anwar Yunita and Ikbal Muhammood observed that
good corporate governance is based on the pillars of accountability, fairness,
transparency and independence in his study the importance of corporate governance
in public sector (2012) and concluded that community and citizens perceive that
public sector corporate governance is essential in determining its service quality.
Accountability, transparency and efficiency help in measuring performance of public
sector.
9. Hussin Norazian Othman Radiab (2012) in Code of Corporate Governance and
Firm Performance concluded that most of the good governance mechanisms still
seem to be insignificant in relation to firm performance which is measured by return
on assets and return on equity. It has provided evidence that an independent board
chair is an effective internal monitoring mechanism to promote better performance.

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 10. Meenu (2012) in her paper titled Need of Effective Corporate Governance and
its challenges in India acknowledged that corporate governance has been proving a
very efficient and effective system for our economy and to save the interest of
shareholders. But it requires more efficient monitoring and transparent internal audit
system which can lead to effective corporate governance.

11.Pavel Kral, Stanislav Tripes, Petr Pirozek and Pavel Pudit (2012) conducted
a mixed method research titled corporate governance against recommendations:
The case of the strong executive and the strong ownership concluded that strong
ownership is usually effective in small organizations while in larger organizations it
can lead to over exertion of owners and low performance. The result of their study
revealed that a majority of joint stock companies, (5 out of 7) are able to produce
above average Return on Assets when they have a strong executive.
12. Ramana Y. Venkata (2012), did A study on Corporate Governance issue &
development In this study he has concluded that there is still lack of awareness
about various issues regarding corporate governance like quality frequency of
financial and managerial disclosure, compliance with code of best practices, roles
and responsibilities of board of directors, shareholders’ rights etc. There have been
many scams in companies due to collusion between companies and accounting
firms, ineffective internal audits and lack of required skills by the managers. With the
integration of Indian economy with global economy, companies are being asked to
adopt better and transparent corporate practices. The degree to which companies
observe basic principle of good corporate governance is an important factor for
taking investment decisions.
13. Sharma Aparna (2012), in the paper titled Legal Framework and corporate
governance: An Indian perspective found that significant efforts have been made by
Indian regulators and the industry to overhaul corporate governance since 1990. The
current corporate governance regime in India straddles both voluntary and
mandatory requirements. For listed companies, requirements of clause 49 are
mandatory. However the non-listed companies do not come under its preview.
14. Aggarwal Krishna Gopal and Medury Yajulu (2013) in their work “Good
Governance – A tool to prevent corporate frauds” gave various suggestive measures
like ensuring appointment of independent auditor, role of professionals reviewed and
regulated by respective professional bodies, effective implementation of several
legislations, setting up of rating agencies would definitely take care to enhance the
chances of good corporate governance and by strengthening the fraud preventive
measures. Good governance process would require restructuring at political,
bureaucratic and corporate level because of corruption and malpractices involved in
the governance process.
15. Dharmastuti Christiana and Wahyudi Sugeng (2013) studied The Effectivity
of Internal and External Corporate Governance Mechanisms towards Corporate
Performance. They concluded that concentration of institutional ownership and debt
holders are more effective in influencing the corporate financial performance than

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internal corporate governance. The internal corporate governance is not showing a
significant influence towards corporate performance which means that the
independent commissioners are not really independent and they cannot act to
synchronize principal and management’s interests.
16. Khiari Wided and Karaa Adel (2013), conducted a study under the title name
Corporate Governance and Disclosure Quality: Taxonomy of Tunisian Listed Firms
Using the Decision Tree Method based Approach for all businesses. They concluded
that the overall score of disclosure may not reflect the actual strategy of disclosure of
the company. It also enables to identify corporate governance factors of its quality of
disclosure. Their study also revealed that the characteristics of corporate
governance to achieve the high quality of disclosure are not unique.
17. Kosulya P.R. Revathi D. Mohan.T (2013) studied Corporate Governance
Models around the World. They opined that corporate governance provides the
guidelines as to how the company can be directed or controlled such that it can fulfill
its goals and objectives in a manner that adds to the value of the company and is
also beneficial for all stakeholders in the long term. It is the technique by which
companies are directed and managed i.e. carrying the business as per stake
holder’s desires. Corporate governance encourages a trust worthy, moral as well as
ethical environment.
18. Ngozi ljeoma and Raymond Ezejiofor A. (2013) in ‘An appraisal of corporate
governance issues in Enhancing Transparency and Accountability in small and
medium enterprises’ concluded that Corporate Governance has contributed
significantly in ensuring accountability and transparency in order to improve the
performance of an enterprise as well as it facilitates in achieving its social
responsibilities towards the environment. It has also assisted in providing structure
through which the objectives are set and means for attaining these objectives. It is
important for a company to follow good corporate governance practices. India being
an emerging economy needs to work more on regulating the corporate governance
policies. The directors should have more defined roles and responsibilities. In the
long run, a market oriented and shareholder countered system must develop as a
new emerged system.
19. Bansal Aishvarya and Bansal Bhavya (2014) were of the view that better
governance leads to better management in their paper Corporate Governance and
Risk Management in Insurance Sector: A review of Literature. They were of the
opinion that corporate governance also includes risk management for the insurance
companies. Risk cannot be diversified and therefore the insurance business is
always at a risky stage. The study revealed that the corporate governance practices
differ according to the nature of the insurance industry, composition of board of
directors, independent directors, risk taking characteristics and other such features.
The study acknowledged the ever-growing importance of corporate governance and
risk management in the insurance sector.
20. Bhardwaj Neelam, Dr. Roao Ragharendra Batani (2014) title Corporate
Governance Practices in India- A case study, In most of the cases it is felt that
corporate governance is followed by most of the companies on paper only. In India, it

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has been observed that majority of the companies are following the mandatory
provisions and disclosing the required information as per the revised clause 79.
Some companies like Bajaj Auto, Infosys, Dr. Reddy etc., have disclosed the
information beyond the requirement of revised clause 49. Infosys got the rating done
for its corporate governance practice from ICRA and CRISIL.
21. Bistrova Julija and Tear Onavicience Manuela (2014) in their research work
titled Corporate Governance as a Crucial Factor in Achieving Suitable Corporate
Performance concluded that corporate governance discrepancies between the good
and bad companies, in terms of performance, consist of three parts: General
Evaluation of Governance, Quality of earnings assessment, Research on the
ownership influence. The study also indicates the high importance of transparency of
the company in the emerging European concern. Ownership structure analysis
proves that the type of major shareholder does not matter when one selects the
stock for the equity portfolio.
22. Chadha Shruti (2014) Corporate Governance and Research and Development:
Evidence from India asserted that boards play a crucial role in the company decision
making, which is supported by the positive relationship between R&D, intensity and
percentage of inside directors. He has concluded that a negative relationship of
sales with R&D as companies might be investing in diversification rather than R&D.
23. Chowdhary Priyanka (2014) in her research titled: Corporate Governance in
Insurance Sector, observed that adoption of good corporate governance practices
enhances transparency of insurance companies operations, ensures accountability
and improves firm’s profitability. It also helps to protect the interest of the
shareholders by aligning their interest with that of the administrators. The results also
show that generally corporate governance has positive impact on profitability of
insurance companies as well.
24. Kaur Kulbeer (2014) did an investigative comparison in her study Corporate
Governance: A comparison between India & China and remarked that Indian
companies have an edge over the Chinese in reaching international standards of
governance. There is less political interference in Indian Boards at least in the
private sector. However most of the corporate sector companies in China are state
owned enterprises or state sponsored enterprises, hence there is a lot of political
influence.
25. Machado Michele et. al (2014) in their research investigated after the
occurrence of corporate fraud in Brazilian Banks from January 2001 to December
2012, seven test hypotheses were constructed from the agency theory in their
research work, The Agency Theory and the Identification of Corporate Fraud: A
study applied to Brazilian Banks. It was concluded that larger the size of the bank
greater the corporate fraud. It is seen that low indicators of corporate governance
and provision for loan losses increase the possibility of a corporate fraud.
26. Maheshwari Meenu & Meena Sapna (2014) -Corporate Governance Standards
& Practice in State Bank of India: An Empirical Study has concluded that SBI is
showing maximum compliance towards corporate governance norms. There are

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certain positive aspects like board corporate governance philosophy, sufficient
number of board members with large number of non-executive directors which are
shown in annual report of SBI. But certain aspects like dematerialization of shares,
review of various committees and directors seeking appoints are not given in annual
reports.

27. Nasieku Tabitha et. al (2014) researched on the topic Corporate Governance &
Firm’s Earnings Quality. They concluded that good governance practices have the
way for companies to grow or attract additional investors for raising capital through
borrowings from bank. Sound corporate governance practices lead to improved
internal central system, less probability of frauds, high profitability & helps in
reducing conflicts between owners and management.
28. Opara C. Leonard and Adale Ayodele John (2014), did a study in Nigeria
titled The Legal Regime of Corporate Governance in Nigeria: A critical analysis.
Even here, the conclusion was that Good corporate governance is essential in
corporate administration as a result of its huge benefits to companies, its
shareholders. The main challenge is to ensure that the system is constantly
monitored & updated to ensure that the codes are relevant and reliable.
29. Ponduri S.B et. al (2014) in their research titled corporate governance-
Emerging Economics Fraud & Fraud Prevention, suggested that
management should pay special attention to computer incidents where fraud is
suspected and in those cases should take extra care in damage evaluation,
collection of evidence and in documentation of evidence collection etc. It was
concluded that government should update the governing policies and see that every
organization should strictly follow this rather put into paper alone. The methodology
should be extended to private companies but it can be expensive to comply with the
provisions of corporate governance.
30. Sharma Anju (2014) in her study Conceptual Corporate Governance in India- A
case study of Tata Group Concluded that concept of corporate governance depends
on transparency, integrity and accountability of management and board of directors.
In the era of globalization good corporate governance helps as a great tool for the
companies. Tata group of industries fully implemented the concept of corporate
governance to fulfill the objectives by appropriate reporting of governance. She also
concluded that governance reporting has a vital role to play in building investor
confidence in the financial statements.
31. Sharma Anshul & Gupta Pooja (2014) did the research titled Corporate
Governance in India: Evolution & ChallengesTheir conclusion was that good
governance is an ideal which is difficult to achieve. Very few countries have achieved
good governance. A failure in corporate governance is a real threat to the future of
any organization. They were quite optimistic that India is now strongly committed to
sustain and rapidly further the major economic reforms.
32. Shungu Progress et. al (2014) studied the Impact of Corporate Governance on
the performance of commercial banks in Zimbabwe and remarked that corporate

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governance has an impact on the performance of commercial banks in Zimbabwe as
it helps to restore back investors’ and depositors’ confidence. It has also highlighted
the conclusions that could be drawn based on the results displayed where corporate
governance and commercial bank performance was analyzed.
33. Velte Patrick (2014) in his article Improving Corporate Governance Quality
Through Modern Controlling Integrated Reporting in the German Two Tier System
concluded that international sector efforts provide a decision making process for
corporate management, in which target oriented central supervision is demanded. A
harmonized internal and external reporting is required for financial accounting
crossing over to IFRS.
34. Zemzem Ahmed & Kacem Oumeima (2014)-Risk Management, Board
Characteristic & Performance in the Tunisian Lending Institutions concluded that
some corporate governance mechanisms, like board of directors, affect the
performance of a firm. They have also concluded that risk management negatively
affects corporate performance in the Tunisian lending institutions. It also contributes
to the existing literature since it determines the relationship between risk
management, board characteristics and performance within Tunisian context.
35. Abbasimuoseloo Khalil ‘Moazen Javad Mohammad (2015) in their study
Enterprise Risk Management and Corporate Governance studied the enterprise risk
management and the factors which influence it. He attempted to justify the impact of
corporate governance on the non-financial performance of the enterprises.
36. Gherghina Cristian Stefan (2015) conducted an assessment of corporate
governance by the instrumentality of Ratings for a sample of 68 companies listed on
the Bucharest stock exchange in Romania. Their work was titled, Corporate
Governance Ratings and Firm Value: Empirical Evidence from the Bucharest Stock
Exchange. The study asserted that the companies listed on BSE developed a Global
rating of corporate governance as well as several specific ratings towards board
independence, ownership concentration and board diversity. However by estimating
various multivariate linear regression models it was documented that the lack of any
statistical significant relationship between the governance global rating and firm
value is shown by return on assets return on equity and earnings per share.
37. Jha Vidhu Shekharand Mehra Vikas (2015), Corporate Governance issues,
practices and concerns in the Indian context – A conceptual study addresses some
of the issues and concern faced by Indian companies on the issues of corporate
governance. All developments related to corporate governance have occurred after
liberalization in 1991. Many large companies like TCS are doing credible work with
regard to corporate governance. The ultimate objective of corporate governance is to
attain the highest standard of procedures and practices followed by corporate world
to have transparency in its functioning for achieving the aim of maximizing value of
various share holders.
38. Kumar Naresh and Singh Mahavir (2015) did an Analysis of Corporate
Governance Practices in Banking Sector with reference to State Bank of India and
HDFC Bank. It was concluded that a conceptual frame work for corporate

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governance needs to include the extent to which operating practices in banks amplify
systems risk and generate crisis. The investigation revealed that there is a gap
between implemented governance norms and required governance norms for the
efficient governance system in banking sector SBI is performing well in comparison
with HDFC Bank for selected time.
39. In the paper titled: Literature review on corporate governance structure and
performance in non-financial firms in Bangladesh, by Samaduzzaman Munshi,
Zaman Fazluz and Quazi Zahurul, (2015), it was concluded that corporate
governance is an internal system which includes policies, people and processes
which serve the needs of shareholders and other stakeholders. It is referred to as a
set of policies, regulations and rules which are framed to safeguard the interests of
the shareholders. Present corporate governance practice in Bangladesh does not
provide sufficient legal, economic and institutional motivation for the stakeholders. In
Bangladesh, the corporate governance structure is mostly managed and owned by
family members which results in hindering the level of fairness, accountability and
transparency.
40. ManafiRoghayeh, Dr. Mahmoudian Amir and Dr. Zabibi Ali (2015) concluded
in his Study of the Relationship between Corporate Governance and Financial
Performance of the Companies listed in Tehran stock exchange market that there is
negative and significant correlation between management, ownership and CEO
duality with firms’ financial performance. The institutional shareholders have a
positive and significant relationship with financial performance of the firms. 41. Saad
Maali Ben Kachour, Jarbaui Anis (2015) concluded in his study accounting
conservatism and earning time lines: Impact on corporate governance index that
accounting conservatism has actually had a significantly positive effect on corporate
governance index. It has also been studied that more conservative in the design of
financial statements of a company is more effective practice of good governance
principal.
42. Sachdeva Sativinder Kaur, Batra G.S. and Walia Nidhi (2015) under the title
Corporate Disclosure practices in selected Indian Companies asserted that there is
an increase in the average score and in corporate governance index in case of all
the companies. It is 14% in case of automobile sector whereas it is 20% in case of
financial sector, 26% in case of FMCG sector the highest one. In case of
construction sector average score is considered the lowest among all sectors.
43. Shukla Kedar (2015) in a study of structure of corporate governance in Central
Government organizations in India was of the opinion that the need of the
governance mechanism like corporate sector was indeed found for the regulation
and management in all central government organizations. The function and purpose
of the central government organizations are quite different than the corporate
purpose. The main purpose of the above paper is to understand how the governance
mechanism of the central government organization different from the corporate or
business organizations.

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 44. Singh Anurag & Prof. Gite Priyanka (2015) in the paper titled, Corporate
Governance Disclosure Practices: A Comparative Study of Selected Public and
Private Life Insurance Companies in India concluded that LIC being the only public
sector company has to be more attentive and concerned on some heads of the
corporate governance so that LIC is able to face the competition given by private life
insurance companies in fair and transparent manner.
45. Sridhar V.R (2015) Impact of corporate governance on financial performance of
companies-A study with reference to select corporate sectors concluded in his study
that in order to have moderate performance to best performance, companies should
have moderate to best corporate government practices. His study has also revealed
that best corporate governance practices ensure moderate performance to best
performance in most of the companies like RIL, Dr. Reddy, Mahindra & Mahindra
etc.

METHODOLOGY

RESEARCH METHODOLOGY
Methodology is way for systematically solving the research problems by applying
the various research techniques along with the logic behind the problem.

  SECONDARY DATA 

  Secondary data refers to data that is collected by someone other than the primary
user. Common sources of secondary data for social science include censuses,
information collected by government departments, organizational records and data
that was originally collected for other research purposes.

QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions (or other

types of prompts) for the purpose of gathering information from respondents. The
questionnaire was invented by the Statistical Society of London in 1838.

Although questionnaires are often designed for statistical analysis of the responses,
this is not always the case.

Questionnaires have advantages over some other types of surveys in that they are
cheap, do not require as much effort from the questioner as verbal or telephone
surveys, and often have standardized answers that make it simple to compile data.
However, such standardized answers may frustrate users as the possible answers
may not accurately represent their desired responses.
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Questionnaires are also sharply limited by the fact that respondents must be able to
read the questions and respond to them. Thus, for some demographic groups
conducting a survey by questionnaire may not be concretely feasible.

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