Statement from PricewaterhouseCoopers

Objective of Review

We were asked by the Management of ITC Limited ("ITC") to provide an "Independent Verification" for its Corporate Sustainability Report ("Report") for the period 1st April 2005 to 31st March 2006.

Responsibilities During Review

The Management of ITC is responsible for the collection and presentation of the financial and non-financial information in the Report. Our responsibility, as agreed with the Management, is to express conclusions with limited review of select data and information contained in the Report in accordance with the International Standard on Assurance Engagements 3000 ("ISAE 3000").

The Report and its contents are the responsibility of the management of ITC, while the observations made under Independent Review Report is the outcome of the professional work undertaken by PricewaterhouseCoopers Private Limited.

Limitations of Review

Our review comprised limited assurance on data and information reported against the indicators delineated under Scope of Review, below.

The data and graphs on financial performance, as specified in the Report under Economic indicators, are derived from the audited 2005 financial statements of ITC Limited and were not within the scope of our review.

Scope of Review

The scope of the review covered:

1. Review of certain statements and data relating to ITC's operations and to provision of limited review in respect of these statements and data;
2. Checking of monitoring and reporting procedures to support reliable disclosure in the Report;
3. Assessment whether the Report provides an appropriate representation of existing policies in the areas of human resources, environment and community involvement;
4. Visits to 8 units viz.

   •	Hotels: Welcomhotel Rajputana Palace Sheraton, Jaipur (Rajasthan) and ITC Hotel Sonar Bangla Sheraton and Towers, Kolkata (West Bengal)
   •	Packaging and Printing Division (PPD) and India Tobacco Division (ITD): Munger (Bihar)
   •	Leaf Processing Plant: Chirala (Andhra Pradesh)
   •	Paperboards and Specialty Papers Division (PSPD): Bhadrachalam (Andhra Pradesh), Kovai (Tamil Nadu) and Tribeni (West Bengal)

5. Checking of the data stated at the following indicators:

   •	Energy: Direct Energy use segmented by primary source, Indirect Energy use and Initiatives to use renewable energy
   •	Water: Total Water withdrawn segmented by source, Water recycled and reused, Significant Effluent discharges and Initiatives for water conservation and harvesting
   •	Air Emissions: NOx, SOx and other significant air emissions, Emissions of Ozone Depleting Substances (ODS), Significant CO2 emissions during transportation and Carbon sequestration (only for PSPD, Bhadrachalam)
   •	Solid Waste: Solid waste generated, reused and recycled
   •	Products and Services: Initiatives to mitigate environmental impacts of products and services and Percentage of products sold and their packaging materials that are reclaimed by category
   •	Accidents and Spills: Lost Day, injury, absentee rates and work related fatalities and Significant spills
   •	Employment: Employee Turnover by age group and gender
   •	Occupational Health and Safety: Education, training, counseling to assist workforce regarding serious diseases
   •	Diversity and Equal Opportunity: Ratio of basic salary of men to women
   •	Product and Service Labelling: Product and service information

Basis for Review

We planned and performed our work in accordance with the ISAE 3000 to obtain limited review. Since the Report has been prepared in line with G3, hence these Guidelines formed the basis for carrying out the review. We also referred to GRI's Reporting Framework Application Levels to ascertain the report application level self-declared by ITC.

We sought all information and explanations that we considered necessary to provide sufficient evidence for us to ascertain that the above indicators were consistent with the activities in the units for the financial period; and were documented and stated in accordance with the guidelines under their environmental and social policies.

Review Procedures Carried Out

Our work consisted of:

1. a desktop review of external economic, environmental and social issues facing ITC;
2. interviews with finance director, senior management responsible for issues related to environment, occupational health & safety, human resources, secretarial, and product packaging;
3. examination of documentation on economic, environmental and social policies, practices, performance, governance etc.;
4. an understanding and assessment of systems for data generation, collection, analysis, consolidation and reporting at business unit, divisional and group level;
5. review and sample testing at eight sites of twenty indicators and associated statements presented in the Report as stated above in light of the findings from the desktop review, site visits, and our cumulative knowledge of the industry and the Company's operations;
6. review of conclusions drawn from data and corresponding statements for select indicators in the context of completeness and reliability.

Parties Responsible for Review Engagement

Our engagement was carried out by a multi-disciplinary team of requisite skills and experience. The review engagement was led by Mr. Devinder Chawla, Executive Director with PwC. The engagement execution was coordinated by Dr. Muna Ali and executed by PwC's Sustainable Business Solutions team.

Conclusion

1. On the basis of the work undertaken, nothing has come to our attention that would cause us not to believe that:

   •	The information for the indicators stated above [at (e) under Scope of Review] in the Report has been fairly stated.
   •	The Report presents a fair and balanced account of ITC's material sustainability performance.
   •	The Report is in accordance with G3 guidelines.

2. ITC is working towards becoming a zero solid waste organisation. It has commissioned a study in one of its FMCG businesses to assess the environmental footprint of its product. This initiative is commendable.
3. Whilst ITC has made efforts to include all its units in reporting all core environmental and social indicators, there is an opportunity for further improvement with respect to expanding the Report scope to include relevant additional indicators and significant subsidiaries such as Surya Nepal Private Limited and ITC Infotech.

Devinder Chawla
Executive Director
Business Solutions
PricewaterhouseCoopers Pvt. Ltd.

Place: Mumbai, India

Date: November 3, 2006