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Annexure A to the Independent Auditor’s Report – 31 March, 2018

Report on the Internal Financial Controls under Clause (i) of Company and its subsidiary companies, which are companies
sub-section 3 of Section 143 of the Companies Act, 2013 (‘the incorporated in India.
Act’)
Meaning of Internal Financial Controls over Financial Reporting
In conjunction with our audit of the consolidated Ind AS financial A company's internal financial control over financial reporting is a
statements of the Holding Company as of and for the year ended process designed to provide reasonable assurance regarding the
31 March 2018, we have audited the internal financial controls over reliability of financial reporting and the preparation of financial
financial reporting of Tata Chemicals Limited (‘the Holding Company’) statements for external purposes in accordance with generally
and its subsidiary companies, which are companies incorporated in accepted accounting principles. A company's internal financial control
India, as of that date.
over financial reporting includes those policies and procedures
Management’s Responsibility for Internal Financial Controls that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions
The respective Board of Directors of the Holding Company and its
subsidiary companies which are companies incorporated in India, of the assets of the company; (2) provide reasonable assurance Integrated Report
are responsible for establishing and maintaining internal financial that transactions are recorded as necessary to permit preparation
controls based on the internal control over financial reporting criteria of financial statements in accordance with generally accepted
established by the respective companies considering the essential accounting principles, and that receipts and expenditures of the
components of internal control stated in the Guidance Note on company are being made only in accordance with authorisations
Audit of Internal Financial Controls over Financial Reporting issued of management and directors of the company; and (3) provide
by the Institute of Chartered Accountants of India (‘ICAI’). These reasonable assurance regarding prevention or timely detection of
responsibilities include the design, implementation and maintenance unauthorised acquisition, use, or disposition of the company's assets
of adequate internal financial controls that were operating effectively that could have a material effect on the financial statements.
for ensuring the orderly and efficient conduct of its business, including Inherent Limitations of Internal Financial Controls over
adherence to respective company’s policies, the safeguarding of Financial Reporting
its assets, the prevention and detection of frauds and errors, the Because of the inherent limitations of internal financial controls over
accuracy and completeness of the accounting records, and the timely financial reporting, including the possibility of collusion or improper
preparation of reliable financial information, as required under the management override of controls, material misstatements due to
Companies Act, 2013.
error or fraud may occur and not be detected. Also, projections of any
Auditors’ Responsibility evaluation of the internal financial controls over financial reporting to Statutory Reports
future periods are subject to the risk that the internal financial control
Our responsibility is to express an opinion on the internal financial
controls over financial reporting of the Holding Company and its over financial reporting may become inadequate because of changes
subsidiary companies, which are companies incorporated in India in conditions, or that the degree of compliance with the policies or
based on our audit. We conducted our audit in accordance with the procedures may deteriorate.
Guidance Note on Audit of Internal Financial Controls Over Financial Opinion
Reporting (the ‘Guidance Note’) issued by the ICAI and the Standards In our opinion, the Holding Company and its subsidiary companies,
on Auditing, issued by ICAI and deemed to be prescribed under which are companies incorporated in India, have, in all material
Section 143(10) of the Companies Act, 2013, to the extent applicable respects, an adequate internal financial controls system over financial
to an audit of internal financial controls, both applicable to an audit reporting and such internal financial controls over financial reporting
of Internal Financial Controls and, both issued by the ICAI. Those were operating effectively as at 31 March, 2018, based on the internal
Standards and the Guidance Note require that we comply with ethical control over financial reporting criteria established by the Holding
requirements and plan and perform the audit to obtain reasonable Company and its subsidiary companies, which are companies
assurance about whether adequate internal financial controls over incorporated in India, considering the essential components of
financial reporting was established and maintained and if such internal control stated in the Guidance Note on Audit of Internal
controls operated effectively in all material respects.
Financial Controls Over Financial Reporting issued by the ICAI. Financial Statements
Our audit involves performing procedures to obtain audit evidence Other matters
about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of Our aforesaid report under Section 143(3)(i) of the Act on the
internal financial controls over financial reporting included obtaining adequacy and operating effectiveness of the internal financial
an understanding of internal financial controls over financial reporting, controls over financial reporting in so far as it relates to two subsidiary
assessing the risk that a material weakness exists, and testing and companies, which are companies incorporated in India, is based
evaluating the design and operating effectiveness of internal control on the corresponding reports of the auditors of such companies
based on the assessed risk. The procedures selected depend on the incorporated in India.
auditor’s judgement, including the assessment of the risks of material For B S R & Co. LLP
misstatement of the financial statements, whether due to fraud or Chartered Accountants
error.
Firm’s Registration No: 101248W/W-100022
We believe that the audit evidence we have obtained and the audit
evidence obtained by the other auditors in terms of their reports Vijay Mathur
referred in to in the Other Matters paragraph below, is sufficient and Mumbai Partner
appropriate to provide a basis for our audit opinion on the internal
financial controls system over financial reporting of the Holding 18 May, 2018 Membership No: 046746
Consolidated Financial Statements 193