BASF India Ltd — Interim / Quarterly Report 2022

Aug 6, 2021

BASF India Limited, Mumbai - 400 051, India

August 6, 2021

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: Unaudited Financial Results of the Company for the quarter ended 30 th June 2021.

We enclose herewith the Unaudited Financial Results of the Company for the quarter ended 30 th June 2021 along with the signed Limited Review Report, which were approved and taken on record by the Board of Directors of the Company at their meeting held today. The meeting commenced at 12.15 p.m. and concluded at 2:05 p.m. The said results will be published in the newspapers on Saturday, 7th August 2021.

Please treat the above information as disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Request you to kindly take note of the above and acknowledge receipt of the same.

Thanking you,

Yours faithfully For BASF India Limited

Pradeep Manjunath Chandan Digitally signed by Pradeep Manjunath Chandan Date: 2021.08.06 14:11:04 +05'30'

Pradeep Chandan Pankaj Bahl Director- Legal, General Counsel (South Asia) Manager- Company Secretarial & Company Secretary

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

PANKAJ RAJKUM AR BAHL Digitally signed by PANKAJ RAJKUMAR BAHL Date: 2021.08.06 14:12:01 +05'30'

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

BASF India Limited

Regd. Office : The Capital, 'A' Wing, 1204-C, 12th Floor, Plot No. C-70, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051, India, Tel: 022-62785600. Statement of Unaudited Financial Results for the quarter ended June 30, 2021

Rs. in million

	3 months ended30/06/2021	Preceding 3 monthsended31/03/2021	Corresponding 3months ended in theprevious year30/06/2020	Previous year ended31/03/2021
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Revenue from operations
Sale of products	29,817.6	27,772.6	17,559.8	94,392.1
Sale of services	277.9	213.9	267.9	1,039.7
Other operating revenues	33.7	69.3	37.2	151.6
	30,129.2	28,055.8	17,864.9	95,583.4
Other income	33.7	42.2	29.9	165.2
Total Income	30,162.9	28,098.0	17,894.8	95,748.6
Expenses:
Cost of materials consumed	9,560.6	9,232.7	4,958.8	27,519.4
Purchase of Stock-in-Trade	15,598.8	15,664.8	10,041.9	51,114.5
Changes in inventories of finished goods,
stock-in-trade and work-in-progress	(543.6)	(2,475.0)	237.9	(670.3)
Employee benefit expense	922.3	1,018.5	976.5	3,449.6
Finance costs (Refer Note 4)	31.4	104.6	122.7	375.7
Depreciation and amortisation expense	416.7	424.4	439.7	1,739.2
Other expenses	1,692.3	2,421.9	1,524.2	7,841.8
Total Expenses	27,678.5	26,391.9	18,301.7	91,369.9
Profit / (Loss) before exceptional item and tax	2,484.4	1,706.1	(406.9)	4,378.7
Exceptional items (Refer Note 3)	-	(215.2)	-	4,020.9
Profit / (Loss) before tax	2,484.4	1,490.9	(406.9)	8,399.6
Tax (credit) / expense: (Refer Note 5)
- Tax (credit) / expense for current period	511.6	932.8	(95.1)	2,873.5
- Income tax (credit) / expense for previous periods	-	-	-	-
	511.6	932.8	(95.1)	2,873.5
Profit / (Loss) for the period	1,972.8	558.1	(311.8)	5,526.1
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Remeasurement (Loss)/ Gain of post employment benefit plans	(3.1)	40.8	(9.3)	21.5
Income tax credit/ (expense) relating to these items	0.8	(13.2)	2.1	(7.5)
Other Comprehensive Income for the period, net of tax	(2.3)	27.6	(7.2)	14.0
Total Comprehensive Income for the period	1,970.5	585.7	(319.0)	5,540.1
Paid-up Equity Share Capital (Face value of Rs. 10/- each)	432.9	432.9	432.9	432.9
Reserves (excluding Revaluation Reserves) as shown in the Balance Sheet of previous year				17,428.6
Weighted average number of equity shares outstanding as at period end	43,284,958	43,284,958	43,284,958	43,284,958
Basic and diluted earnings per share after exceptional items (in Rs.) (not annualised)	45.6	12.9	(7.2)	127.7
Basic and diluted earnings per share before exceptional items (in Rs.) (not annualised)	45.6	16.1	(7.2)	58.6
Face value per share (in Rs.)	10.0	10.0	10.0	10.0

BASF India Limited

Regd. Office : The Capital, 'A' Wing, 1204-C, 12th Floor, Plot No. C-70, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051, India, Tel: 022-62785600. Statement of Unaudited Financial Results for the quarter ended June 30, 2021

Notes:

• 1 The above financial results for BASF India Limited ('the Company') for the quarter ended June 30, 2021 have been reviewed by the Audit Committee and thereafter approved by the Board of Directors at its meeting held on August 6, 2021. The above results have been subjected to limited review by the statutory auditors of the Company.
• 2 The Scheme of Merger by Absorption of BASF Performance Polyamides India Private Limited (BPPIPL) with the Company was approved by the National Company Law Tribunal, Mumbai ('NCLT') vide order dated January 6, 2021 with an appointed date of February 1, 2021. BPPIPL being a wholly owned subsidiary of the Company, no consideration was paid pursuant to the merger. The certified copy of the NCLT Order has been filed with the Registrar of Companies on February 1, 2021. Basis NCLT order, BPPIPL stands merged with the Company on the appointed date.

Consequently, basis NCLT order and requirement of Appendix C to Ind AS-103 on Business Combinations, on the appointed date, the Company has accounted the acquisition of BPPIPL as common control transaction effective February 1, 2020 (i.e. the date of global acquisition of Solvay Polyamides business by BASF SE). As a result, the financial results of the Company for the quarter ended June 30, 2020 as reported in these financial results have been restated on account of such merger and include results of erstwhile BPPIPL.

3 Exceptional items includes following:

Particulars	3 months ended30/06/2021	Preceding 3 monthsended31/03/2021	Corresponding 3months ended in theprevious year30/06/2020	Previous year ended31/03/2021
Profit on sale of Construction chemicals business	-	-	-	4,651.9
Loss on divestiture of Optical Brightening Agents (OBA) business	-	-	-	(138.5)
Impairment of certain assets at Dahej plant	-	-	-	(277.3)
Provision for employee compensation towards realignment of global business service units	-	(215.2)	-	(215.2)
Total	-	(215.2)	-	4,020.9

4 Finance cost includes interest on income tax, interest and other costs incurred on short and long term borrowings, interest accrued on lease liabilities under Ind AS 116, effects from fair valuation of derivatives relating to financing activities, realised (gain)/ loss on rollover of derivatives relating to financing activities, exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

5 Tax expense includes provision for current income tax, tax expense for previous periods, minimum alternate tax and deferred tax charge/ (credit) including minimum alternate tax credit (based on estimated average effective annual income tax rate, considering tax allowances). The Company has elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 from current year onwards. Accordingly, the Company has recognized Provision for Income Tax for the quarter ended June 30, 2021 based on the rates prescribed in the said section.

6 The Company has received demand notices from the Commercial Tax Department, Karnataka aggregating Rs. 7,446.7 million (including interest and penalty) for the period 2006-07 to 2016-17, by treating the stock transfers of its Mangalore Plant as interstate sales to dealers. However, recovery of demands for period 2006-07 to 2015-16 have been stalled by the Hon'ble Karnataka Appellate Tribunal. The Company has filed an appeal along with stay application against demand order for year 2016-17.

The Company has also filed a Writ Petition before the Hon'ble Karnataka High Court against the order passed by Hon'ble Central Sales Tax Appellate Authority (CSTAA).

Based on the expert legal advice obtained by the Company, it does not consider these stock transfers as interstate sales. Hence no provision is considered necessary in the books.

7 The COVID-19 situation continues to evolve. The Company has evaluated the impact of this pandemic on its business operations, liquidity and financial position and based on management's review of current indicators and economic conditions, no additional adjustment is required in the financial results for the quarter ended June 30, 2021. Given the uncertainty associated with its nature and duration, the impact may be different from that estimated as at the date of approval of these financial results. The Company will continue to monitor any material changes to future economic conditions.

8 Previous period figures have been regrouped/ reclassified, wherever necessary to conform to current period classification.

9 For more details on results, visit the Investor Relations section of the Company's website at www.basf.com/in and/or website of the Stock Exchanges viz., www.bseindia.com and www.nseindia.com.

On behalf of the Board of Directors KRISHNAMOH Digitally signed by KRISHNAMOHAN NARAYAN Date: 2021.08.06 13:10:04

CIN No.: L33112MH1943FLC003972 Narayan Krishnamohan Mumbai Managing Director August 6, 2021 DIN : 08350849

AN NARAYAN +05'30'

JEETENDRA MIRCHANDA NI

Digitally signed by JEETENDRA MIRCHANDANI Date: 2021.08.06 13:31:30 +05'30'

	3 months ended30/06/2021	Preceding 3 monthsended 31/03/2021	Corresponding 3 monthsended in the previousyear 30/06/2020	Previous Year ended31/03/2021
	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1. Segment Revenue
a. Agricultural Solution	4,864.5	3,163.2	4,388.9	14,349.3
b. Materials	7,179.4	8,533.6	1,814.1	21,889.3
c. Industrial Solutions	5,339.4	4,718.8	2,150.4	13,879.4
d. Surface Technologies	964.4	1,161.5	915.0	3,965.4
e. Nutrition & Care	5,773.1	5,601.2	5,356.9	23,092.4
f. Chemicals	5,759.2	4,633.6	2,976.4	17,284.7
g. Others	249.2	243.9	263.2	1,122.9
Total	30,129.2	28,055.8	17,864.9	95,583.4
Less: Inter - segment revenue	-	-	-	-
Total income from operations (net)	30,129.2	28,055.8	17,864.9	95,583.4
2. Segment Results
Profit/ (Loss) before tax and interest
a. Agricultural Solution	476.2	95.4	410.4	1,105.8
b. Materials	1,038.6	1,070.8	(440.8)	1,397.3
c. Industrial Solutions	603.5	360.8	(115.5)	933.0
d. Surface Technologies	(0.4)	(177.3)	(273.6)	(498.7)
e. Nutrition & Care	33.4	297.1	68.6	1,186.4
f. Chemicals	417.6	295.3	95.7	853.5
g. Others	50.4	(28.7)	35.2	93.3
Total	2,619.3	1,913.4	(220.0)	5,070.6
Less : (i) Finance costs (Refer Note 4)(ii) Other un-allocable expenditure net off	31.4103.5	104.6102.7	122.764.2	375.7316.2
un-allocable other income
Total Profit/ (Loss) before tax and exceptional items	2,484.4	1,706.1	(406.9)	4,378.7
Exceptional items (Refer Note 3)	-	(215.2)	-	4,020.9
Total Profit / (Loss) before tax	2,484.4	1,490.9	(406.9)	8,399.6
3. Segment Assets
a. Agricultural Solution	9,223.8	6,725.1	7,756.5	6,725.1
b. Materials	15,804.1	14,988.9	12,351.1	14,988.9
c. Industrial Solutions	8,860.9	8,060.5	5,979.6	8,060.5
d. Surface Technologies	2,601.8	3,226.8	4,633.1	3,226.8
e. Nutrition & Care	8,739.6	9,048.3	8,992.6	9,048.3
f. Chemicals	6,479.0	5,419.9	3,380.1	5,419.9
g. Othersh. Unallocated	697.72,199.8	642.93,328.7	798.74,670.6	642.93,328.7
Total Segment Assets	54,606.7	51,441.1	48,562.3	51,441.1
4. Segment Liabilities
a. Agricultural Solution	5,794.1	4,132.5	5,095.5	4,132.5
b. Materials	6,774.9	9,071.1	6,988.6	9,071.1
c. Industrial Solutions	5,975.4	6,294.7	3,114.7	6,294.7
d. Surface Technologies	1,270.5	1,496.2	7,263.7	1,496.2
e. Nutrition & Care	6,382.2	6,754.6	6,405.2	6,754.6
f. Chemicals	5,968.7	5,181.3	2,911.7	5,181.3
g. Others	157.0	190.0	76.9	190.0
h. Unallocated	2,458.1	459.2	4,585.2	459.2
Total Segment Liabilities	34,780.9	33,579.6	36,441.5	33,579.6
5. Capital Employed
( Segment Assets - Segment Liabilities)
a. Agricultural Solution	3,429.7	2,592.6	2,661.0	2,592.6
b. Materials	9,029.2	5,917.8	5,362.5	5,917.8
c. Industrial Solutions	2,885.5	1,765.8	2,864.9	1,765.8
d. Surface Technologies	1,331.3	1,730.6	(2,630.6)	1,730.6
e. Nutrition & Care	2,357.4	2,293.7	2,587.4	2,293.7
f. Chemicals	510.3	238.6	468.4	238.6
g. Othersh. Unallocated	540.7(258.3)	452.92,869.5	721.885.4	452.92,869.5
Total	19,825.8	17,861.5	12,120.8	17,861.5

Notes:

a. Agricultural Solution – The Agricultural Solutions segment consists of the Crop Protection division. Agricultural Solution is seasonal in nature

b. Materials – The Materials segment comprises Performance Materials divisions, the Monomers divisions and Polyamides business of BPPIPL merged with the Company

c. Industrial Solutions - The Industrial Solutions segment consists of the Dispersions & Resins divisions and Performance Chemicals divisions

d. Surface Technologies - The Surface Technologies segment comprises of the Construction Chemicals (upto June 30, 2020), Catalysts and Coatings divisions

e. Nutrition & Care - The Nutrition & Care segment consists of the Care Chemicals and Nutrition & Health divisions

f. Chemicals - The Chemicals segment consists of the Petrochemicals and Intermediates divisions

g. Others – Others includes activities that are not allocated to any of the continued operating divisions. These includes remaining activities after divestiture of leather and textile chemicals business, paper wet-end and water chemicals business, technical and service charges other than those specifically identifiable to above segments.

h. Un-allocable Corporate Assets mainly includes Current tax assets (net), Deferred tax assets (net), Cash and cash equivalents and other un-allocable assets.

i. Un-allocable Corporate Liabilities mainly includes borrowings, Current tax liabilities (net) and other un-allocable liabilities

j. Previous period figures have been regrouped/ reclassified, wherever necessary to conform to current period classification.

To

The Board of Directors BASF India Limited The Capital, A Wing, 1204-C, 12th Floor, Plot No. C-70, 'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051

• 1. We have reviewed the unaudited financial results of BASF India Limited (the "Company") for the quarter ended June 30, 2021 which are included in the accompanying 'Statement of Unaudited Financial Results for the quarter ended June 30, 2021' (the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been signed by us for identification purposes. The Statement is the responsibility of the Company's management and has been approved by the Board of Directors. Our responsibility is to issue a report on the Statement based on our review.
• 1. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement.
• 1. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material respects in accordance with the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We draw your attention to Note 6 of the financial results, which describes the status of certain demand notices received by the Company from the Commercial Tax Department, Karnataka and the management's assessment in respect of the same, based on the legal advice obtained by the Company. Our conclusion is not modified in respect of this matter.

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