BASF India Limited, Mumbai - 400 051, India August 13, 2018 The Market Operations Department BSE Limited, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai 400 001. Name of the Company : BASF India Limited Security Code No. : 500042 Dear Sir/Madam, Sub: Compliance under Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended. We wish to inform you that the Seventy Fourth Annual General Meeting (AGM) of the members of BASF India Limited was held on Friday, 10 th August, 2018 at 3.00 p.m. at “Yashwantrao Chavan Pratishthan Auditorium”, Y. B. Chavan Centre, General Jagannath Bhosale Marg, Nariman Point, Mumbai- 400021, where all the resolutions as set out in the Notice convening the said AGM have been transacted and have been passed with requisite majority by the members. In compliance with the requirements of Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, we are furnishing herewith the Annual Report of the Company for the financial year ended 31st March, 2018. Please take the above intimation on record and acknowledge receipt of the same. Thanking you, Yours Faithfully, For BASF India Limited Pradeep Chandan Pankaj Bahl Director – Legal, General Counsel (South Asia) Manager- Company Secretarial & Company Secretary Encl : a.a. Cc: The Assistant Manager – Listing National Stock Exchange of India Ltd. Exchange Plaza, Plot No.C/1, G Block Bandra – Kurla Complex Bandra (East), Mumbai – 400 051 National Securities Depository Limited (NSDL) Central Depository Services (India) Limited (CDSL) Registered Office BASF India Limited The Capital, ‘A’ Wing, 1204 -C, 12th Floor, Plot No. C -70, ‘G’ Block, Bandra -Kurla Complex, Bandra (East), Mumbai - 400 051, India Tel +91 22 6278 5600 CIN - L33112MH1943FLC003972 www.basf.com/in Message from the Chairman & Managing Director Dear Shareholders, World growth strengthened in 2017 to 3.8%, with a rebound in global trade led by advanced economies. India too witnessed growth as government initiatives to revive the economy increased Gross Domestic Product (GDP) in the last two quarters. While most sectors gradually recovered from GST and demonetization, climbing crude oil prices and falling value of Rupee are concern areas. In my last year’s message, I highlighted how your Company is moving towards profitable and sustainable growth. You would be pleased to know that we expanded our business with sales increasing by 10% on a comparable basis (adjusted for GST and Excise) to Rs. 55,834 million. Despite an erratic monsoon, our agricultural business saw strong double- digit growth driven by volume from new product launches. The Chemicals business too, saw “To ensure seamless strong double-digit growth mainly driven by price and supported by volume. Considering the improved operational and financial performance, your Company has recommended a dividend delivery of services payment of Rs. 3/- per equity share of Rs. 10/- each (i.e. 30%) for the financial year 2017-18. and smooth transition To ensure seamless delivery of services and smooth transition for customers, we were ready for GST implementation from day one. New products for rice from the Crop Protection for customers, we were business were successfully established. Our focus on farmer safety under the ‘Suraksha Hamesha’ initiative continued with the introduction of an improved version of personal ready for GST protection equipment ‘Sanrakshan kits’. The Fuel and Lubricants business team launched implementation from Glysantin®, a high-performance engine coolant on Amazon India’s website to enhance digital outreach. day one.” Operational efficiency and resource optimization led to increased volumes across various manufacturing sites. Production is being ramped up for Cellasto®, used in the suspension system of automobiles, at our Dahej plant. We prioritized various energy conservation measures and introduced solar power at the Mangalore facility, reducing carbon emissions by ~13,400 tons per annum. Additionally, this year, we brought R&D activities in Mumbai under one roof. We completed the divesture of the Leather Chemicals business to Stahl Group. Such strategic portfolio management helped us to move further on the path to profitable growth. Our CSR initiatives continued to focus on Water, Sanitation and Hygiene (WASH) and education. We worked closely with the local communities around our sites in Dahej, Mangalore and Ankleshwar, conducting behavioural change programs, providing piped water and installing a digital classroom. Recognitions from customers and stakeholders continued. The EHS team won the Indian Chemical Council Certificate of Merit for Best Compliant Company for Distribution Code under Responsible Care. The Coatings team won multiple awards from key customers including Best Supplier Award from Honda Motorcycles and Scooters, while our Performance Materials team won the Best Business Partner award from Haier India. Your Company was also named as the most compliant company amongst S&P’s BSE 500 companies in CimplyFive’s 3rd Secretarial Audit report. Your Company believes that committed and qualified teams are the key to contribute towards a sustainable future. To this effect, we introduced several initiatives through the Diversity & Inclusion team constituted in 2016. ‘Working Mother and AVTAR’ recognized your Company as one of the ‘100 Best Companies for Women in India’ for the second time in a row. We boosted employee morale through initiatives like Fit@BASF, Fun@BASF and The Knowledge Series. As we look into the future, we would continue our focus on maintaining profitable and sustainable growth. We see that customers and stakeholders are aligning with companies making advancements towards reducing impact on environment and climate change. This trend will make sustainable chemistry a reality, placing your Company at a strategic advantage. Our sharp focus on customer centricity and digitization will help us continue leading the industry. On behalf of the Board of Directors, I thank you all for your valuable trust and continued support. With best wishes, Raman Ramachandran, Ph.D. Annual Report 2017-2018 74th Annual General Meeting Contents Friday, 10th August, 2018 Page at 3.00 p.m. at Yashwantrao Chavan Board of Directors 2 Pratishthan Auditorium, Y. B. Chavan Centre, General Jagannath Bhosale Marg, Directors’ Report 4 Nariman Point, Mumbai – 400 021. Agenda Management Discussion and 1. Presentation of Financial Statements Analysis Report 42 and the Directors’ / Auditors’ Report 2. Declaration of Dividend Report on Corporate Governance 48 3. Re-appointment of Director 4-7. Special Business Auditors’ Report 63 The Notice of the Meeting is enclosed. BASF India Limited Balance Sheet 70 Registered Office: The Capital, ‘A’ Wing, 1204-C Statement of Profit & Loss 71 12th Floor, Plot No. C-70, ‘G’-Block, Bandra Kurla Complex, Cash Flow Statement 72 Bandra (East), Mumbai – 400051. Telephone : +91 6278 5600 Statement of Changes in Equity 74 Website : www.basf.com/in E-mail ID : [email protected] Notes to the Financial Statements Corporate Identification Number: for the year ended March 31, 2018 75 L33112MH1943FLC003972 Works: Maharashtra (Navi Mumbai) (1) Plot Nos. 12 & 13, TTC Industrial Area, MIDC, Thane-Belapur Road, Turbhe, Navi Mumbai – 400 705. (2) Plot Nos. C-68, TTC Industrial Area, MIDC, Thane-Belapur Road, Turbhe, Navi Mumbai – 400 613. Karnataka (Mangalore) Bala/Thokur Village, Surathkal-Bajpe Road, Mangalore Taluka, Dakshina Kannada District, Karnataka – 575 030. Gujarat (1) Ankleshwar Unit I: Plot Nos. 6214/6216, GIDC Phase IV Ankleshwar – 393 002, Gujarat. Unit II: Plot No. 8001, GIDC Phase VI Ankleshwar – 393 002, Gujarat. (2) Dahej 4B, Dahej Industrial Estate, Village Dahej, Taluka Vagra, District Bharuch, Gujarat – 392 130. Andhra Pradesh (Nellore) Plot 1 & 1A, APIIC Industrial Park, Menakur Village, Block B, Naidupet Mandal, SPSR Nellore District, Andhra Pradesh. Himachal Pradesh (Nalagarh) Khasra No. 87/1, Village: Beer Plassis, Nalagarh, District: Solan, Himachal Pradesh. West Bengal (Kharagpur) Plot No. F-7, Vidyasagar Industrial Park, Kharagpur, Paschim Medinipur, West Bengal. Branch Offices: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Pune. Registrar & Share Transfer Agent: TSR Darashaw Limited Unit : BASF India Limited, 6-10, H. M. Patrawala Industrial Estate, Near Famous Studio, 20, Dr. E. Moses Road, Mahalaxmi (West), Mumbai – 400 011. Tel. No. : +91 22 66568484 Extn: 411/412/413 Fax No. : +91 22 66568494 Email : [email protected] BASF India Limited 1 Board of Directors Raman Ramachandran, Ph.D. Mr. R. A. Shah Mr. R. R. Nair Mr. Pradip P. Shah Chairman & Managing Director Mr. Arun Bewoor Dr. Andrea Frenzel Mr. Raimar Jahn Mr. Narendranath J. Baliga Dr. Lakshmi Nadkarni Mr. Rajesh Naik Chief Financial Officer & Alternate Director Whole-time Director Alternate Director 2 Annual Report 2017-2018 Management Committee Bankers Dr. Raman Ramachandran (i) Citibank N.A. Mr. Narendranath J. Baliga (ii) Deutsche Bank AG st Dr. Rajan Venkatesh (upto 31 March, 2018) (iii) The Hongkong and Shanghai Banking Corporation Mr. Bejoy Chandran (w.e.f. 1st June, 2018) Limited Mr. Sylvain Huguenard (upto 31st December, 2017) (iv) BNP Paribas Mr. Brieux Boisdequin (w.e.f. 1st June, 2018) (v) The Bank of Tokyo and Mitsubishi UFJ Limited Mr. Pradeep M. Chandan (vi) Credit Agricole CIB Dr. Lakshmi Nadkarni Mr. Rajesh Naik Internal Auditors Ms. Sunita Sule Messrs Mahajan & Aibara Mr. Srinivas