Sustainability Report 2010

Ernst & Young Pvt. Ltd. (EY) was retained by ITC Limited (the "Company") to provide an independent assurance on its Sustainability Report 2010 (the "Report"), limited to the social and environmental information therein. ITC’s management is responsible for the content of the report, identification of the key issues, engagement with stakeholders and its presentation. EY’s responsibility is to provide assurance on the report content, as described in the scope of assurance.

The assurance engagement was planned and performed in accordance with International Federation of Accountants’ International Standard for Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000). Our evidence-gathering procedures have been designed to obtain a limited level of assurance (as set out in ISAE 3000) on which we base our conclusions.

The scope of our work for this assurance is limited to review of information pertaining to environment and social performance for the period of 1st April 2009 to 31st March 2010, in 8 selected representative units from various businesses of the Company, which are material to the Company’s triple bottomline performance, as below:

• Hotels Division - ITC Mughal, Agra; ITC Sonar, Kolkata

• Paperboards and Specialty Papers Division - Bhadrachalam

• ITD (Tobacco Division) - Saharanpur

• ILTD (Leaf Tobacco Division) - Chirala

• Packaging & Printing Business - Haridwar

• Foods Division - Haridwar

• Personal Care Products Division - Haridwar

EY’s multidisciplinary team of professionals visited the Company’s above manufacturing units in order to gain assurance on the data and information presented in the report, on core G3 indicators listed below;

• EN 1: Raw material consumption

• EN 3: Direct energy consumption

• EN 4: Indirect energy consumption

• EN 8: Total water withdrawal

• EN 16: Total direct and indirect GHG emissions by weight

• EN 20: SO_x, NO_x and other significant air emissions by type and weight

• EN 21: Quantity and quality of water discharged by destination

• EN 22: Total weight of waste by type and disposal method

• LA 1: Total workforce

• LA 4: Unionised employees

• LA 7: Safety performance (Fatality, reportable injury and man-days lost)

• LA 10: Training manhours per employee category

• SO 1: Nature scope and effectiveness of programs that assess the impact of business on community

• PR 3: Product labeling

• PR 6: Adherence to codes and voluntary guidelines for marketing

The nature and scope of our work was based on our professional judgment and we have performed procedures deemed necessary to provide a basis for our conclusions. The approach to the assurance exercise included interaction with key personnel to identify the processes in place to capture sustainability performance data and information as per GRI 2006 (GRI-G3) guidelines. The team conducted review and verification of data collection process, measurement methodology and general review of the logic of inclusion/omission of necessary information/data, limited to:

• Review of major anomaly within the report as well as between the report and source data/information;

• Verification of the data and information reported at the manufacturing units and corporate office;

• Execution of audit trail of selected data streams and information to determine the level of accuracy in collection, transcription and aggregation processes followed;

• Review of Company’s plans, policies and practices, so as to be able to make comments on the completeness of reporting and degree to which EY believes the report provides a fair and honest representation of the Company’s activities.