BASF India : Annual Report 2023-2024

Message from the Managing Director

At the outset, I express my sincere gratitude for your trust, support, and confidence as we continue to successfully chart the path towards sustainable and profitable growth. I am confident that together, we will continue to navigate the future with resilience, surmounting challenges, and seizing opportunities to consistently deliver strong business outcomes for the organization.

The global macro-economic scenario during the financial year 2023-24 was another period of subdued growth marked by high inflation and interest rates, geo-political tensions, concerns of recession and supply chain constraints. Despite international economic uncertainties, India is expected to continue to be the fastest growing large economy and a preferred market to attract future investments. The team's resilience in navigating through difficult environments has led to strong business results for your Company in the financial year 2023-2024.

Your Company demonstrated strong growth and registered sales of Rs. 137,674.8 million for the financial year ended March 31, 2024. Despite a volatile market sentiment, your Company has demonstrated solid growth in the Agricultural Solutions and Materials segments. Your Company reported profit before tax (before exceptional items) of Rs. 7,589.5 million for the financial year 2023- 24 as compared to profit before tax (before exceptional items) of Rs. 5,280.9 million in the previous year. We continue to efficiently manage working capital, while growing our operations in the country. Considering the financial performance of your Company, the Board of Directors have recommended a dividend of 150% i.e., Rs. 15/- per equity share (previous year Rs. 8/- per equity share) for the financial year ended March 31, 2024.

We continue to enhance our production facilities and strengthen our development capabilities in the country. After groundbreaking ceremonies conducted last year, your Company inaugurated the Polyurethane Technical Development Center in Mumbai to support market development of polyurethanes applications in various industries, which complements the capacity expansion of Ultramid® and Ultradur® at Panoli and Thane manufacturing sites. Your Company expanded its e-coat manufacturing facility at Mangalore site, introducing the latest generation of high-performancee-coats to automotive manufacturers.

Your Company launched Efficon® Insecticide - powered by Axalion® Active, an industry first, offering a unique class of chemistry (IRAC group 36) with novel mode of action for effective control of piercing and sucking pests. Efficon® Insecticide will build on the successful launch of Exponus® enabling us to continue to make strong inroads in the important insecticide market. Our continued commitment to provide a broad range of solutions to farmers is also supported with Priaxor® in the fungicides segment and Tynzer® in the herbicides segment.

Safety remains an integral component of our business operations. We maintained a solid safety track record with zero high severity incidents across our sites. We are first in India to achieve the REDcert2 Certification for our Dispersion plants at Dahej and Mangalore sites enabling production of certified biomass-balanced acrylics dispersions, marking a significant milestone in our commitment to environmental stewardship, while supporting our customers in their low carbon footprint journey. As part of our commitment to Net Zero, your Company's manufacturing sites at Gujarat and Mangalore, significantly reduced its dependence on fossil fuels by procuring energy from renewable sources, thereby contributing to environmental sustainability.

Further, as part of our Corporate Social Responsibility initiatives, your Company successfully launched We-Chemie program with an objective to build a talent pipeline of women in the chemical industry and ChemAmaze, a platform to implement gamification pedagogy at schools and making classroom learning more engaging. We also continue to inspire the next generation for chemistry and to become climate champions with more than 2200 children from lesser privileged communities having experienced our BASF Kids' lab.

Our focus is to uphold our growth momentum, stay close to our customers, optimize asset utilization, and maintain diligent control over working capital and expenses. Simultaneously, we'll remain steadfast in pursuing our long-term strategic goals, driving forward our sustainability initiatives, promoting diversity and inclusion and fortifying our talent pipeline. Our strong commitment to maintaining safe and efficient operations will remain foundational to our sustained success.

I extend my deepest appreciation to our talented employees, valued customers, partners, and stakeholders for their continued collaboration. And to you, our esteemed shareholders, I express gratitude for your trust and support. Let us continue to create chemistry for a sustainable future!

Warm regards,

Alexander Gerding

Managing Director

Annual Report 2023-2024

80th Annual General Meeting

Wednesday, August 7, 2024 at 3.00 p.m. through Video Conferencing / Other Audio Visual Means.

Agenda

1. Presentation of Audited Standalone & Consolidated Financial Statements for the financial year ended March 31, 2024 & the Directors' / Auditors' Reports thereon.
2. Declaration of Dividend.
3. Re-appointmentof Director.
4. Appointment of Statutory Auditors

5-7 Special Business:

Notice of the Meeting is attached.

BASF India Limited

Registered Office:

The Capital, 'A' Wing, 1204-C 12th Floor, Plot No. C-70,'G'-Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051.

Telephone : [phone]

Website :www.basf.com/in

E-mailID :[e-mail]

Corporate Identification Number:

L33112MH1943FLC003972

Manufacturing Sites:

Maharashtra (Navi Mumbai)

Plot No. 12 & 13, TTC Industrial Area, MIDC, Thane-Belapur Road, Turbhe, Navi Mumbai - 400 705.

Karnataka (Mangalore)

Bala/Thokur Village, Surathkal-Bajpe Road,

Mangalore Taluka, Dakshina Kannada District,

Karnataka - 575 030.

Gujarat (Dahej)

4B, Dahej Industrial Estate, Village Dahej,

Taluka Vagra, District Bharuch, Gujarat - 392 130.

Gujarat (Panoli)

Village Umarwada,

Survey No 432/1+2,

Taluka Ankleshwar, Gujarat - 393 001.

Offices:

Ahmedabad, Bangalore, Chandigarh, Delhi, Hyderabad,

Indore, Lucknow, Mumbai, Nagpur, Navi Mumbai

and Pune.

Registrar & Share Transfer Agent:

Link Intime India Private Limited

Unit : BASF India Limited,

C-101, 1st Floor, 247 Park,

Lal Bahadur Shastri Marg,

Vikhroli (West), Mumbai - 400 083.

Tel. No. : [phone]

Fax No.: [phone]

Email : [e-mail]

Contents

	Page
Board of Directors &
Key Managerial Personnel	2
Directors' Report	4
Management Discussion and
Analysis Report	64
Report on Corporate Governance	74
Standalone Financial Statements	95
Consolidated Financial Statements	157
Highlights - At a glance	208

BASF India Limited

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Board of Directors & Key Managerial Personnel

Mr. Pradip P. Shah	Mr. Alexander Gerding	Dr. Ramkumar Dhruva	Mr. Marcelo Rocha Lu
	Chairman	Managing Director

Mrs. Shyamala Gopinath		Mr. Bahram Vakil		Ms. Sonia Singh

Mr. Narendranath J. Baliga	Mr. Anil Choudhary	Mr. Manohar Kamath
Chief Financial Officer &	Manufacturing Head &	Company Secretary
Alternate Director	Whole-time Director

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Annual Report 2023-2024

Management Committee	Bankers
Mr. Alexander Gerding	(i)	Citibank N.A.
Mr. Narendranath J. Baliga	(ii)	Deutsche Bank AG
(iii)	BNP Paribas
Mr. Anil Choudhary
(iv)	Credit Agricole CIB
Mr. Manohar Kamath
(v)	Bank of America
	(vi)	HDFC Bank Limited
	(vii) Mizuho Bank
Statutory Auditors	(viii) Standard Chartered Bank
Messrs Price Waterhouse Chartered Accountants LLP
252, Veer Savarkar Marg,	Secretarial Auditors
Shivaji Park, Dadar (West),	Messrs HSPN & Associates, LLP
Mumbai - 400 028.
206, 2	nd	Floor,
	Tantia Jogani Industrial Estate,
Cost Auditors	J. R. Boricha Marg, Opp. Lodha Excelus,
Lower Parel (E), Mumbai - 400 011.
Messrs R. Nanabhoy & Co.
Cost Accountants	Advocates & Solicitors
Jer Mansion,
Messrs Crawford Bayley & Co.
70 August Kranti Marg,
Mumbai - 400 036.	State Bank Building, 4th Floor,
	N. G. N. Vaidya Marg, Fort,
Internal Auditors	Mumbai - 400 023.
Messrs Mahajan & Aibara	Director - Legal, General Counsel (India) &
Chartered Accountants	Company Secretary
1, Chawla House,	Mr. Manohar Kamath
62, Wodehouse Road,

Colaba, Mumbai - 400 005.

German Vice Chancellor, Dr. Robert Habeck, Markus Kamieth, CEO, BASF SE and Alexander Gerding, MD, BASF India launched BASF Kids' Lab

2023 on climate change as a CSR initiative at Innovation Campus, Mumbai.

BASF India Limited

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Alexander Gerding, Managing Director, BASF India reaffirming our commitment to partnering with the Indian

Government to achieve self-reliance in manufacturing and R&D at the 17th Annual India Chemical Industry Outlook

Conference, organized by the Indian Chemical Council (ICC) in collaboration with McKinsey & Company.

Directors' Report

Your Directors have pleasure in presenting their Report for the financial year ended March 31, 2024.

Standalone Financial Results

		(Rs. in million)
Description	Year ended	Year ended
	31.3.2024	31.3.2023
Revenue from operations	1,37,674.8	1,36,447.7
Profit before exceptional items and Tax	7,589.5	5,280.9
Exceptional items	-	153.1
Profit before tax	7,589.5	5,434.0
Tax expense	1,956.0	1,405.1
Profit after tax	5,633.5	4,028.9
Dividend	649.3	346.3

Standalone Financial Performance

The revenue from operations stood at Rs. 1,37,674.8 million as compared to Rs. 136,447.7 million in the previous year. Your Company reported a Profit Before Tax (before exceptional items) of Rs. 7,589.5 million for the year ended March 31, 2024 as compared to Rs. 5,280.9 million in the previous year.

The Agricultural Solutions business of your Company registered good growth in revenues during the year under review as compared to the previous year. The growth in the Agricultural Solutions business was equally propelled by both price and volume, with substantial contribution from Exponus® in Insecticides; Priaxor® in Fungicides and Tynzer® in Herbicides. The improved profitability of the Agricultural Solutions business was mainly on account of significant price realisation and favorable product mix.

The Industrial Solutions segment of your Company comprising of the Dispersions, Resins, Additives & Performance Chemicals businesses. The revenue of the Dispersions business was marginally impacted due to lower price

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realisation; however the business witnessed higher volumes in key products like Acronal® and Styronal®. The margins of the Dispersions business improved mainly due to higher volumes and better prices on account of product mix. In case of the Performance Chemicals business, the revenues were impacted due to challenging market conditions and overall reduction in demand, however, the margins improved due to lower input prices.

The Materials segment of your Company comprising of the Performance Materials & Monomers businesses registered good growth in revenue during the year under review as compared to the previous year. The revenues of the Performance Materials business of the Company were mainly driven by high demand across all its products; led by Cellasto® and Specialty Chemicals offsetting the impact of downward price trend. The margins of the Performance Materials business also improved due to higher revenue and lower fixed cost. The Monomers business of your Company registered growth boosted by sale of new product Aniline Bulk and strong demand for Methylene diphenyl diisocyanate (MDI). Higher revenues and better margins also led to higher profits for the Monomers business.

The Surface Technologies segment of your Company comprises of the Coatings & Catalysts businesses. The revenues of the Company's Coatings business improved marginally due to higher price realisation mainly from owned enterprise manufacturers. The profits of the Coatings business also improved significantly due to better margins. The Catalysts business consisting of Process & Refinery Catalysts, registered strong market driven volume growth, however, the margins were impacted due to higher input costs.

The Nutrition & Care segment of your Company comprises of the Care Chemicals and Nutrition & Health businesses. The revenues of the Care Chemicals business of the Company were mainly impacted due to lower volumes and drop in feedstock prices. However, the margins of the Care Chemicals business improved due to softening of input costs despite lower demand. The revenues of the Nutrition & Health business improved due to higher volume in some of the key products, however squeezed margins led to lower profits.

During the year under review, the revenues of the Chemicals segment of your Company comprising of the Petrochemicals & Intermediates businesses was impacted mainly due to lower price realisation and lower volumes. However, the margins of the Chemicals segment improved due to lower input costs and favourable product mix.

Export sales stood at Rs. 3072.7 million during the year under review.

Subsidiary Company

During the year under review i.e., on December 11, 2023, your Company has incorporated BASF India Coatings Private Limited as its wholly owned subsidiary. Your Company does not have any Associate Company or Joint Venture Company as on March 31, 2024.

Pursuant to the provisions of Section 129(3) of the Companies Act, 2013, a statement containing salient features of Financial Statements of BASF India Coatings Private Limited in the prescribed Form AOC-1 is provided in Annexure Iand forming part of this Report. The Financial Statements of the subsidiary company are also available on the Company's website at www.basf.com/inand the same are also available for inspection as per the details mentioned in the Notice of 80th Annual General Meeting. Your Company will also make available these documents upon request by any Member of the Company interested in obtaining the same.

Consolidated Financial Statements

The Annual Audited Consolidated Financial Statements together with the Report of Auditors' thereon forms part of this Annual Report

Transfer of Coatings business to BASF India Coatings Private Limited, 100% Wholly Owned Subsidiary of your Company.

During the year, the Coatings business of your Company was proposed to be transferred to a wholly owned subsidiary; namely BASF India Coatings Private Limited (incorporated on December 11, 2023). The transfer of the said business is proposed to be concluded on going concern and at arm's length basis, for a consideration of Rs. 1,820 million, as determined by an Independent Valuer and approved by the Audit Committee and Board of Directors of the Company. The transfer of business will be subject to necessary adjustments, as may be required, to the consideration on the closing date, by the end of the calendar year 2024, in accordance with the conditions specified in the Business Transfer Agreement. Your Company will receive the final consideration in the form of shares of BASF India Coatings Private Limited, at closing.

Execution of Long-term Power Purchase Agreement for procurement of renewable power to Company's manufacturing site at Mangalore

Your Company has entered into a 25-yearlong-term Power Purchase Agreement ("PPA") with Clean Renewable Energy

1. 2C Private Limited, Special Purpose Vehicle, incorporated by Hero Rooftop Energy Private Limited ("the Developer"), for procurement of 2.7 MW of renewable power to its manufacturing site at Mangalore under the prevailing renewable energy policy of the State of Karnataka, the Electricity Act 2003 and the Rules thereunder ("Applicable Laws").

BASF India Limited

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Further, in order to avail the benefit under Captive Power Generative mechanism to the captive users under the Applicable Laws, your Company will hold atleast 26% equity share capital of Clean Renewable Energy KK 2C Private Limited as required under the Applicable Laws for an amount not exceeding Rs. 15 million.

Your Company has signed a Share Subscription and Shareholder Agreement with Clean Renewable Energy KK 2C Private Limited and Hero Rooftop Energy Private Limited on April 1, 2024. Closing of the transaction is subject to customary conditions precedent including receipt of requisite approvals.

Transfer to Reserves

The Company has not transferred any amount to the Reserves for the financial year ended March 31, 2024.

Share Capital

During the year under review, there has been no change in the share capital of the Company. The authorised share capital of the Company, as on March 31, 2024 is Rs. 715,597,150/-, which is divided into 71,559,715 equity shares of Rs. 10/- each, whereas the issued share capital of the Company comprises of 43,285,640 equity shares of Rs. 10/- each aggregating to Rs. 432,856,400/-.

Dividend

The Board of Directors of your Company have recommended a Dividend of Rs. 15/- per equity share i.e., 150% for the financial year ended March 31, 2024. The Dividend would be paid, subject to the approval of the Members at the forthcoming Annual General Meeting on August 7, 2024.

Further, as per Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the top 1000 listed entities based on market capitalization are required to formulate a Dividend Distribution Policy. Accordingly, your Company has formulated its Dividend Distribution Policy, and the same is available on the Company's website at https://bit.ly/ basfdividenddistributionpolicy.

Changes in Directors

During the year under review, the following changes took place in the Board of Directors of the Company: -

1. Dr. Carola Richter resigned as Director of the Company, with effect from the close of business hours on January 31, 2024 to pursue her interest and opportunity outside BASF. The Board of Directors of your Company place on record its sincere appreciation for the valuable contributions made by Dr. Carola Richter during her tenure as the Director of the Company.
2. The Board of Directors of the Company at its Meeting held on February 12, 2024 appointed Mr. Marcelo Rocha Lu (DIN: 10462274) as the Non-Executive Director of the Company, effective February 12, 2024 to fill-in the casual vacancy caused by the resignation of Dr. Carola Richter. The appointment of Mr. Marcelo Rocha Lu as a Non-Executive Director has been approved by the Members of the Company on May 7, 2024, by way of postal ballot.
   Mr. Marcelo Rocha Lu, aged 42 years, studied Foreign Service at the Georgetown University in Washington DC. He joined BASF as a Procurement Manager Raw Materials, BASF SE (Germany) in 2006. Thereafter in 2009, he was appointed as a Staff to BASF SE Board Member in BASF East Asia RFQ Ltd, Hong Kong. In 2011, he was appointed as Director, Business Management Polyamides & Intermediates, BASF East Asia RHQ Ltd., Hong Kong. Later in 2012, he was appointed as Vice President, Business Management Polyamides & Precursors, Asia Pacific, BASF East Asia RHQ Ltd., Hong Kong. Between 2016 and 2021, he acted as the Managing Director, BASF Canada Inc and in 2021, he was appointed as Senior Vice President, Care Chemicals North America, BASF Corporation, Florham Park, USA. He has now been appointed as President, Asia Pacific (excl. Greater China) and has assumed responsibility for the Division South & East Asia, ASEAN & ANZ, BASF South-East Asia Pte. Ltd., Singapore, effective February 1, 2024.
3. The Board of Directors of the Company at its meeting held on March 27, 2024 took note of the completion of tenure of Mr. Pradip P. Shah, Mr. R. A. Shah and Mr. Arun Bewoor as Independent Directors of the Company on March 31, 2024. The Board of Directors of your Company place on record its sincere appreciation for the valuable contributions made by Mr. Pradip P. Shah, Mr. R. A. Shah and Mr. Arun Bewoor as Independent Directors of the Company. The Board further recognized the association of Mr. R. A. Shah as the longest serving Board Member of your Company since 1968.
4. Considering Mr. Pradip P. Shah's industry-wide knowledge, diverse skill sets, expertise and based on the recommendation of Nomination & Remuneration Committee, the Board of Directors of the Company at its meeting held on March 27, 2024 considered and appointed Mr. Pradip P. Shah as Non-Executive Non-Independent Director of the Company effective April 1, 2024.
   Keeping in view, Mr. Pradip P. Shah's leadership and collaborative approach in connecting the management and Board to deliver strong corporate governance, the Board also approved his continuance as the

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Annual Report 2023-2024

Non-Executive Chairman of the Company and his office as Director of the Company will be liable to retire by rotation in accordance with the relevant provisions of the Companies Act, 2013. The Board also recognized that the continued association of Mr. Pradip P. Shah would be of immense benefit to the Company.

Mr. Pradip P. Shah is a Chartered Accountant, Management Accountant and holds MBA from Harvard University. He is also a Cost Accountant. He has served on several expert committees of Central and State Governments and was a Director on the Regional Board of the Reserve Bank of India. He is also on the governing boards of some NGOs and Chambers of Commerce.

The appointment of Mr. Pradip P. Shah (DIN: 00066242) as Non-ExecutiveNon-Independent Director of the Company, effective April 1, 2024 was approved by the Members of the Company by way of Postal Ballot on May 7, 2024.

1. Appointment of new Independent Directors:-
   The Nomination and Remuneration Committee of your Company considered the various attributes, in line with the Company's requirements such as industry wide knowledge, sector-specific knowledge, international experience, diversity & inclusivity, cultural-fit, independence, integrity etc., for the identification and selection of the new Independent Director(s) of the Company.
   After evaluating proposals of diverse candidates, the Nomination and Remuneration Committee took into consideration that the skills, expertise and competencies possessed by Mr. Bahram Vakil and Ms. Sonia Singh were in line with the desired attributes and Company's requirements. Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of your Company at its meeting held on March 27, 2024 approved the appointment of Mr. Bahram Vakil (DIN: 00283980) and Ms. Sonia Singh (DIN: 07108778) as Additional Directors in the capacity of Independent Directors of the Company for a term of 5 (five) consecutive years, effective April 1, 2024, till March 31, 2029.
   The appointments of Mr. Bahram Vakil and Ms. Sonia Singh as Independent Directors of the Company effective April 1, 2024 for a term of 5 (five) consecutive years was approved by the Members of the Company on May 7, 2024 by way of postal ballot.
   Mr. Bahram Vakil holds Master of Law (LLM) from Columbia University, New York, USA and is also the Member of New York State Bar. He is one of the founding partners of AZB & Partners, Indian law firm. Mr. Bahram Vakil specializes in the areas of Restructuring & Insolvency, Banking & Finance, Corporate / Mergers & Acquisitions, Energy, Infrastructure and Microfinance and has also been on several government constituted committees.
   Ms. Sonia Singh earned her Post Graduate Diploma in Business Management from Faculty of Management Studies, Delhi, India and holds a Bachelor of Arts degree (Economics). She has rich experience of over 33 years in sales and marketing, from creating new categories, channels, brands to new functions & capabilities. She has worked in Lakme Ltd and Hindustan Unilever Limited and also has overseas experience with companies like Nokia, Pepsi, Friesland Foods, Heineken as a brand consultant and marketing trainer.
2. Re-appointmentof Dr. Ramkumar Dhruva as Non-Executive Director of the Company: -
   In accordance with the provisions of Section 152 (6) of the Companies Act, 2013, Dr. Ramkumar Dhruva, Non-Executive Director being eligible, offers himself for re-appointment as Director of the Company at the 80th Annual General Meeting of the Company to be held on August 7, 2024.
   As required under the SEBI Listing Regulations, the details of Dr. Ramkumar Dhruva, Non-Executive Director of the Company, seeking re-appointment at the ensuing Annual General Meeting are provided in the Corporate Governance Report, forming part of this Annual Report.

Finance & Accounts

Your Company efficiently managed working capital and generated cash from operations of Rs. 8,072.4 million during the year under review. Your Company had NIL borrowings as at the end of financial year 2023-2024.

Your Company continued to focus on managing cash efficiently and ensured that it had adequate credit lines from Company's bankers. Your Company's debt equity ratio was Nil as at March 31, 2024.

Capital Expenditure

Capital expenditure incurred during the year aggregated to Rs. 977.7 million.

Credit Rating

During the year, CRISIL Ltd re-affirmed the credit rating of 'CRISIL AAA / Stable' for the long-term debt programme of your Company. The ratings on the Fixed Deposits and Commercial Paper have been re-affirmed at 'FAAA / Stable' and 'CRISIL A1+', respectively.

Instruments with these ratings are considered to have the highest degree of safety regarding timely servicing of financial obligations & carry lower credit risk.

BASF India Limited

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Fixed Deposits

During the year, your Company has not invited, accepted, or renewed any fixed deposits from the public and accordingly, there is no principal or interest outstanding in respect thereof.

Management Discussion and Analysis Report

In terms of the SEBI Listing Regulations, the Management Discussion and Analysis Report is appended to this Annual Report.

Corporate Governance

Your Company is committed to maintain the highest standards of Corporate Governance and has complied with the Corporate Governance requirements as per the SEBI Listing Regulations.

A separate report on Corporate Governance as stipulated under the SEBI Listing Regulations along with a Certificate of Compliance from the Statutory Auditors, forms part of this Annual Report.

Corporate Social Responsibility

As required under the provisions of the Companies Act, 2013, the Board of Directors of your Company has constituted a Corporate Social Responsibility (CSR) Committee on April 30, 2013. In view of the changes in the Board of Directors of the Company, the CSR Committee was reconstituted by the Board of Directors at its meeting held on March 27, 2024, effective April 1, 2024.

Presently, Mr. Bahram Vakil (Chairman), Ms. Sonia Singh, Independent Directors and Mr. Anil Choudhary, Manufacturing Head & Whole-time Director are the Members of the CSR Committee. Your Board of Directors placed on record its sincere appreciation to Mr. Arun Bewoor for his invaluable contribution and guidance to the CSR Committee and CSR activities of the Company as Chairman of this Committee till March 31, 2024.

Mr. Manohar Kamath, Director - Legal, General Counsel (India) & Company Secretary of the Company continues to act as the Secretary of the CSR Committee.

The CSR Committee has formulated the CSR Policy and has recommended the activities to be undertaken by the Company as specified under Schedule VII of the Companies Act, 2013.

During the year under review, one meeting of the CSR Committee were held on August 4, 2023 to review and recommend to the Board of Directors, the CSR activities to be undertaken by the Company during the financial year 2023-2024.

Your Company was required to spend an amount of Rs. 119 million (Gross Amount) during the financial year 2023- 2024 towards CSR projects / activities.

The details of the ongoing CSR projects initiated by the Company, are provided in Annexure IIof this Report.

Business Responsibility & Sustainability Report

Regulation 34(2) of the SEBI Listing Regulations, inter alia, provides that the Annual Report of the top 1000 listed entities based on market capitalization, should mandatorily include a Business Responsibility & Sustainability Report ("BRSR") from financial year 2022-23 onwards.

Although the top 1000 listed entities were mandatorily required to publish BRSR from the financial year 2022-23 onwards, your Company adopted and published the said Report on a voluntary basis during the financial year 2021-2022.

In line with the SEBI listing requirements, your Company has included BRSR as part of this Report for the financial year 2023-24, as Annexure III, describing the initiatives taken by the Company from an environmental, social and governance perspective.

The BRSR for the financial year 2023-2024 has also been hosted on the Company's website, and the same can be accessed at www.basf.com/in

Vigil Mechanism

Your Company has established a Whistle Blower Policy for employees, Directors and third parties to report their genuine concerns, details of which have been given in the Corporate Governance Report annexed to this Report. This policy is available on the Company's website and can be accessed at: https://bit.ly/basfwhistleblowerpolicy.

Directors' Responsibility Statement

Your Directors confirm that:

1. in the preparation of the annual standalone and consolidated financial statements, the applicable accounting standards have been followed;

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Annual Report 2023-2024