• Report of findings from the review/verification process ('Verification Report') to management and key internal stakeholders;

• The 8 units selected for visits and verification are as follows -

  1. ITD (Tobacco Division) - Saharanpur, Uttar Pradesh

  2. ILTD (Leaf Tobacco Division) - Chirala, Andhra Pradesh

  3. Packaging and Printing Division - Tiruvottiyur, Tamil Nadu

  4. Paperboards & Specialty Papers Division - Tribeni, West Bengal and Bhadrachalam, Andhra Pradesh

  5. Hotels Division - ITC Maurya, New Delhi

  6. Surya Nepal Private Limited - Simra, Nepal

  7. Corporate - ITC Green Centre, Gurgaon

• The selected core G3 indicators from the environment and social reporting section which were verified are -

  1. Environment

     1. Materials (EN1, EN2)

     2. Energy (EN3, EN4)

     3. CO₂ Emissions (EN16)

     4. Water (EN8, EN21)

     5. Ozone depleting substances (EN19)

     6. Air Emissions (EN20)

     7. Solid Wastes (EN22)

  2. Social

     1. Employment (LA1)

     2. Training (LA10)

     3. Occupational Health and Safety (LA7)

     4. Community development and Social & Farm Forestry initiatives (SO1)

     5. Product Responsibility (PR1)

The 'economic performance indicators' included in the Report are derived by the Company from the Company's audited financial records. We have not performed any review of these data and information.

The scope of our work for this assurance statement was limited to verification of information pertaining to environmental and social performance for the year April 2007 to March 2008. We have not performed review of the past years' information included in the Report.

Methodology of assurance

The assurance was performed by our multidisciplinary team of professionals in the field of environment, health, safety and social matters, who visited the sample sites and Corporate office of the Company for reviewing and verifying the information.

The assurance provided to the Report is in accordance with the International Standard for Assurance Engagements (ISAE3000); we have provided 'limited' assurance as per this standard.

Conclusion

Based on our scope of review and approach, nothing has come to our attention that causes us not to believe that the Company is concerned about Environment, Health & Safety (EHS) and social issues pertaining to its business activities.

Other Observations

• The Company has used GRI G3 Guidelines and relevant protocols.

• The Company has selected material issues that are of significance to its stakeholders.

• The Company has presented in a fairly balanced and complete manner, the information pertaining to EHS and social parameters on material consumption/recycling, energy, water consumption/discharge, GHG emissions, solid wastes, accidents and social programmes and practices.

• The systems and procedures applied by the Company for collection, collation and interpretation of non-financial historical data on EHS and social performance parameters for inclusion in the Report are reliable.

• The Company has done significant work in creating rainwater harvesting potential, and the Company's 'Water Positive' status is based on creation of this potential.

Our responsibility in performing our assurance activities is to the management of the Company only and in accordance with the terms of reference agreed with the Company. We do not therefore accept or assume any responsibility for any other purpose or to any other person or organisation.

Ernst & Young Private Limited

(Sudipta Das)
Partner

Kolkata, India
Dated: August 14, 2008