Tata Chemicals : Reasonable Assurance Report for BRSR 2023-24

KPMG Assurance and Consulting Services LLP	Telephone: +91	(22) 3989 6000
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N. M. Joshi Marg, Mahalaxmi

Mumbai - 400 011 India

Independent Practitioners' Reasonable Assurance Report

To the Directors of Tata Chemicals Limited

Report on the sustainability disclosures in the Business Responsibility and Sustainability Reporting (BRSR) Core Format 1 (called 'Identified Sustainability Information' (ISI) of Tata Chemicals Limited (the 'Company') for the period from 1 April 2023 to 31 March 2024. The ISI is included in the Business Responsibility and Sustainability Reporting of the Company for the period from 1 April 2023 to 31 March 2024. This engagement was conducted by a multidisciplinary team including assurance practitioners, engineers and environmental and social professionals.

Opinion

We have performed a reasonable assurance engagement on whether the Company's sustainability disclosures in the BRSR Core Format (refer to Annexure 1) for the period from 1 April 2023 to 31 March 2024 has been prepared in accordance with the reporting criteria (refer table below).

Identified

Period

Page number

Reporting criteria

Reporting boundary

Sustainability

subject

to

in the Annual

Information

assurance

Report

(ISI) subject to

assurance

BRSR

Core

From

1

April

-

Regulation

34(2)(f) of

the

Consolidated group

(refer

Annexure

2023

to

31

Securities

and

Exchange

1)

March 2024

Board

of

India

(SEBI)

Listing

Obligations

and

Disclosure

Requirements

(SEBI LODR)

- Guidance note for BRSR

format issued by SEBI

-

World

Resource

Institute

(WRI)

/ World

Business

Council

for

Sustainable

Development

(WBCSD)

Greenhouse

Gas

(GHG)

Protocol

(A

Corporate

Accounting

and

Reporting

Standards)

1 Notified by SEBI vide circular number SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12 July 2023

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In our opinion, the company's Identified Sustainability Information on pages [x] to [y] of the Annual Report for the period 1 April 2023 to 31 March 2024, subject to reasonable assurance is prepared, in all material respects, in accordance with the Regulation 34(2)(f) of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (SEBI LODR) and basis of preparation set out in notes [x] to [xx] in the section [Identify the section] of the Annual Report.

Basis for opinion

We conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board (IAASB). Our responsibilities under those standards are further described in the "Our responsibilities" section of our report.

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

Our firm applies International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, issued by the IAASB. This standard requires the firm to design, implement and operate a system of quality management, including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

Management and the Board of Directors are responsible for the other information. The other information comprises the information included in the Company's Annual Report (but does not include the BRSR Core attributes and assurance report thereon). The Company's Annual Report is expected to be made available to us after the date of this auditor's report.

Our reasonable assurance opinion on the BRSR Core attributes does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our assurance on the BRSR Core attributes, our responsibility is to read the other information identified above when it becomes available, and in doing so, consider whether other information is materially inconsistent with the BRSR Core attributes or our knowledge obtained in the assurance, or otherwise appears to be materially misstated.

Other matter

Select BRSR Core attributes of the Company for the year ended 31 March 2023 were assured by the previous assurance practitioner who had expressed an unmodified opinion on 19 May 2023.

Our opinion is not modified in respect of this matter.

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Intended use or purpose

The ISI and our reasonable assurance report are intended for users who have reasonable knowledge of the BRSR Core attributes, the reporting criteria and ISI and who have read the information in the ISI with reasonable diligence and understand that the ISI is prepared and assured at appropriate levels of materiality.

Our opinion is not modified in respect of this matter.

Responsibilities for the identified Sustainability Information (ISI)

The management of the Company acknowledge and understand their responsibility for:

• designing, implementing and maintaining internal controls relevant to the preparation of the ISI that is free from material misstatement, whether due to fraud or error;
• selecting or establishing suitable criteria for preparing the ISI, taking into account applicable laws and regulations, if any, related to reporting on the ISI, identification of key aspects, engagement with stakeholders, content, preparation and presentation of the ISI in accordance with the reporting criteria;
• disclosure of the applicable criteria used for preparation of the ISI in the relevant report/statement;
• preparing/properly calculating the ISI in accordance with the reporting criteria; and
• ensuring the reporting criteria is available for the intended users with relevant explanation;
• establishing targets, goals and other performance measures, and implementing actions to achieve such targets, goals and performance measures;
• responsible for providing the details of the management personnel who takes ownership of the ISI disclosed in the report;
• ensuring compliance with law, regulation or applicable contracts;
• making judgments and estimates that are reasonable in the circumstances;
• identifying and describing any inherent limitations in the measurement or evaluation of information subject to assurance in accordance with the reporting criteria;
• preventing and detecting fraud;
• selecting the content of the ISI, including identifying and engaging with intended users to understand their information needs;
• informing us of other information that will be included with the ISI;
• supervision of other staff involved in the preparation of the ISI

Those charged with governance are responsible for overseeing the reporting process for the Company's ISI.

Inherent limitations in preparing the ISI

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The preparation of the company's BRSR information requires the management to establish or interpret the criteria, make determinations about the relevancy of information to be included, and make estimates and assumptions that affect the reported information.

Measurement of certain amounts and BRSR Core metrics, some of which are estimates, is subject to substantial inherent measurement uncertainty, for example, GHG emissions, water footprint, energy footprint. Obtaining sufficient appropriate evidence to support our opinion/conclusion does not reduce the uncertainty in the amounts and metrics.

Our responsibilities

We are responsible for:

• Planning and performing the engagement to obtain reasonable assurance on the sustainability disclosures in the BRSR Core are free from material misstatement, whether due to fraud or error, in accordance with the Reporting Criteria in line with the section above.
• Forming an independent opinion, based on the procedures we have performed and the evidence we have obtained, and
• Reporting our reasonable assurance opinion to the Directors of Tata Chemicals Limited.

Exclusions

Our assurance scope excludes the following and therefore we will not express a conclusion on the same:

• Any form of review of the commercial merits, technical feasibility, accuracy, compliance with applicable legislation for the project, and accordingly, we will express no opinion thereon. We will also not be required to verify any of the judgements and commercial risks associated with the project, nor comment upon the possibility of the financial projections being achieved.
• Operations of the Company other than those mentioned in the "Scope of Assurance".
• Aspects of the BRSR and the data/information (qualitative or quantitative) other than the ISI.
• Data and information outside the defined reporting period i.e., 31 March 2024.
• The statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided by the Company.

Summary of the work we performed as the basis for our conclusion

We exercised professional judgment and maintained professional skepticism throughout the engagement. We designed and performed our procedures to obtain evidence that is sufficient and appropriate to provide a basis for our reasonable assurance opinion.

Reasonable assurance opinion

The nature, timing, and extent of the procedures selected depended on our judgment, including an assessment of the risks of material misstatement of the information subject to reasonable assurance, whether

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due to fraud or error. We identified and assessed the risks of material misstatement through understanding the Information subject to reasonable assurance and the engagement circumstances. We also obtained an understanding of the internal control relevant to the information subject to reasonable assurance in order to design procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of internal controls. In carrying out our engagement, we:

• assessed the suitability of the criteria used by the company in preparing the reasonable assurance information;
• evaluated the appropriateness of reporting policies, quantification methods and models used in the preparation of the information subject to reasonable assurance and the reasonableness of estimates made by the company; and
• evaluated the overall presentation of the information subject to reasonable assurance.

Shivananda Shetty

Partner

KPMG Assurance and Consulting Services LLP

Date:

Place:

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Appendix - 1

BRSR Core attributes

BRSR Indicator		GRI Linkage				Type of Assurance
P6 E1- Details of total energy consumption (in Joules		302-1-(a), (b), (c)-i, (e)
	Energy consumption within the		Reasonable
or multiples)
	organization
P6 E1- Details of total energy intensity		302-3 (a) Energy intensity		Reasonable
P6 E3- Provide details of water withdrawal by source		303-3-(a)-I,303-3-(a)-ii,303-3-		Reasonable
	(a)-iii,303-3-(a)-iv
P6 E4- Provide details of water discharged		303-1-(a),303-2-(a),303-4		Reasonable
P6 E3- Provide details of water consumption		303-5 (a)					Reasonable
P6 E7- Provide details of greenhouse gas emissions		305-1 (a), (b), (c), (d), €Direct		Reasonable
(Scope 1)		(Scope 1) GHG emissions
P6 E7- Providep details of greenhouse gas emissions		305-2 (a), (b),	(c),	Energy
	indirect	(Scope	2)	GHG		Reasonable
(Scope 2)
	emissions
P6 E7 - Provide details of greenhouse gas emissions		305-4 (a), (b), GHG emissions		Reasonable
(Scope 1 and Scope 2) intensity		intensity
P6 E9- Provide details related to waste generated by		306-3-(a)					Reasonable
category of waste		Waste generated
P6 E9 - Provide details related to waste recovered		306-4-(a),(b-i),(b-ii),(b-iii), (c-
through recycling, re-using or other recovery		i), (c-ii),(c-iii) Waste diverted		Reasonable
operations		from disposal
P6 E9- Provide details related to waste disposed by		306-5-(a),(b-i),(b-ii),(b-iii), (c-
	i), (c-ii),	(c-iii),	(c-iv)	Waste		Reasonable
nature of disposal method
	directed to disposal
P3 E11-Details of safety related incidents including		403-9-(a-i-v),	403-9-(b-i-v),
	Work-related injuries
lost time injury frequency rate, recordable work-related				Reasonable
	403-10-(a),403-10-(b-ii)
injuries, no. of fatalities
	Work-related ill health
P9 E7- Instances involving loss/breach of data of
customers as a percentage of total data breaches or		No Linkage				Reasonable
cyber security events
P5 E7- Complaints filed under the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, including complaints reported,		No Linkage				Reasonable
complaints as a % of female employees, and
complaints upheld
P1 E9-Concentration of purchases & sales done with
trading houses, dealers, and related parties Loans and		No Linkage				Reasonable
advances & investments with related parties
P1 E8- Number of days of accounts payable		No Linkage				Reasonable
P8 E5- Job creation in smaller towns		No Linkage				Reasonable

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P3 E1c- Spending on measures towards well-being of
employees and workers - cost incurred as a % of total	No Linkage	Reasonable
revenue of the company
P5 E3b- Gross wages paid to females as % of wages	No Linkage	Reasonable
paid

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