Assurance Statement

Independent Assurance Statement

To, The Management and Board of Directors Kirloskar Brothers Limited, Pune 411045 India

Scope We have been engaged by Kirloskar Brothers Limited to perform a Limited Assurance, as defined by International Standards on Assurance Engagements (ISAE 3000), hereafter referred to as the engagement, for Kirloskar Brothers Limited’s Integrated Annual Report FY 23, prepared as per The International Integrated Reporting Council (IIRC framework) and GRI Standard (the “Subject Matter”) for the period from
1^st April 2022 to 31^st March 2023.

Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did not perform assurance procedures on the remaining information included in the Report, and accordingly, we do not express a conclusion on this information.

Criteria applied by Kirloskar Brothers Limited In preparing the integrated report, Kirloskar Brothers Limited applied, The International Integrated Reporting Council (IIRC framework), and Global Reporting Initiative (GRI) Standards. The GRI Standards criteria were specifically designed for Integrated Report FY 23; As a result, the subject matter information may not be suitable for another purpose.

Kirloskar Brothers Limited’s Responsibilities Kirloskar Brothers Limited’s management is responsible for selecting the Criteria, and for presenting the Integrated Report FY23 in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records, and making estimates that are relevant to the preparation of the subject matter, such that it is free from material misstatement, whether due to fraud or error.

EY’s Responsibilities Our responsibility is to express an opinion on the presentation of the Subject Matter based on the evidence we have obtained.

We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000’). The terms of reference for this engagement as agreed with Kirloskar Brothers Limited on 22^nd November 2022. Those standards require that we plan and perform our engagement to obtain reasonable assurance about whether, in all material respects, the Subject Matter is presented in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risk of material misstatement, whether due to fraud or error.

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

Our Independence and Quality Control We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, and have the required competencies and experience to conduct this assurance engagement

EY also applies International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements.

Description of procedures performed. Procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.

Although we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.

A limited assurance engagement consists of making inquiries, primarily of persons responsible for preparing the integrated report and related information and applying analytical and other appropriate procedures

Our procedures included:

• Conducted interviews with select personnel at various units and corporate teams to understand the process for collecting, collating, and reporting the subject matter as per Global Reporting Initiative (GRI) standards;
• Checked that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the Criteria;
• Undertook analytical review procedures to support the reasonableness of the data through consultations with the site team and sustainability team;
• Review of relevant data, on a selective test basis, for the following units/ locations, through consultations at the Company’s Corporate Office & Global Headquarter, Pune:
  • The Company’s manufacturing unit at Dewas, Kaniyur, Kirloskarvadi, Sanand, Shirwal
  • The Company’s Subsidiaries:
    • Kirloskar Ebara Pumps Limited (KEPL)
    • Kirloskar Corrocoat Pvt Limited (KCPL)
    • Karad Projects and Motors Limited (KPML)
    • The Kolhapur Steel Limited
• Review of data on a sample basis, at the above-mentioned locations, pertaining to the following disclosures of the GRI Standards:
  • Environmental Topics: Materials (301-1); Energy (302-1,302-3); Water and Effluents (303-3,303-4,303- 5); GHG Emissions (305-1,305-2,305-4,305-7) ; Waste (306-5);
  • Social Topics: General Disclosures (2-7), Employment (401-1, 401-3), Labour and Management Relationship (402-1), Occupational Health and Safety (403-9, 403-10), Training and Education (404-1 to 404-3), Diversity & Equal Opportunity (405-2) and Local Communities (413-1, 413-2);
• Execution of an audit trail of claims and data streams, on a selective test basis, to determine the levelof accuracy in the collection, transcription, and aggregation processes followed.
• Review of the Company's plans, policies, and practices, pertaining to their social, environmental, and sustainable development, to be able to make comments on the fairness of sustainability reporting;
• Review of the Company's approach towards materiality assessment disclosed in the Integrated Report to identify relevant issues;
• Review of select qualitative statements in ESG sections of the Integrated Report FY 23.

We also performed such other procedures as we considered necessary in the circumstances

The assurance scope excludes:

• Data and information outside the defined reporting period (1^st April 2022 to 31^st March 2023)
• Data and information on the economic and financial performance of the Company
• Data, statements, and claims already available in the public domain through Annual Report, Sustainability Report, or other sources available in the public domain
• The Company's statements that describe the expression of opinion, belief, inference, aspiration, expectation, aim, or future intention provided by the Company
• The Company’s compliance with regulations, acts, and guidelines with respect to various regulatory agencies and other legal matters

Our Conclusion

Based on our procedures and the evidence obtained, we are not aware of any material modifications that should be made to Integrated Report FY’2022-23 for the period from 01st April 2022 to 31^st March 2023, in order for it to be in accordance with the The International Integrated Reporting Council (IIRC framework), and Global Reporting Initiative (GRI) Standards Criteria.

Restricted use: This report is intended solely for the information and use of Kirloskar Brothers Limited and is not intended to be and should not be used by anyone other than Kirloskar Brothers Limited.

For and on behalf of Ernst & Young Associates LLP

Chaitanya Kalia
June 30, 2023
Mumbai, India

Ernst & Young Associates LLP is a Limited Liability Partnership with LLP identity No. AAB-4321
Regd. Office : 6th Floor, Worldmark – 1, Asset Area 11, Hospitality District, Indira Gandhi International Airport, New Delhi – 110037, India.