Your Directors’ have pleasure in presenting their Report for the financial year ended March 31, 2026. Financial Results

Financial Performance

The revenue from operations from continuing operations stood at Rs. 1,49,854.0 million for the financial year ended March 31, 2026 as compared to Rs. 1,48,114.4 million in the previous year. Your Company reported a Profit After Tax from continuing operations of Rs. 4,169.2 million for the financial year ended March 31, 2026 as compared to Rs. 5,011.0 million in the previous year.

The revenues of the Agricultural Solutions business of your Company were impacted on account of price erosion due to generic competition in corn and low sentiments for chillies, soya and cotton produce. However, it was partially compensated by revenues from new products Valexio® and Mibelya® and Meritor® (Bio-stimulants segment). The profitability of the Agricultural Solutions business was impacted due to lower sales in herbicides and insecticides segment.

The Industrial Solutions segment of your Company comprises of the Dispersions & Performance Chemicals businesses. The revenue of the Dispersions business marginally dropped due to lower prices, partially offsetted by higher volumes. However, the profitability of Dispersions business improved due to higher volumes coupled with better margins due to lower cost of inventory on hand. In case of the Performance Chemicals business, the revenues were higher from project specific sales to customers along with improved margins.

The Materials segment of your Company comprises of the Performance Materials & Monomers businesses. The revenues of the Performance Materials business of the Company improved mainly due to higher volume growth in all segments partially offset by lower price realisation. However, the margins were impacted due to lower prices partly offset by reduced input costs. The revenues of Company’s Monomers business were impacted due to lower price realization, partly offset by higher volumes in TDI (Toluene Diisocyanate), MDI (Methylene Diphenyl Diisocyanate and PA6 (Polyamide 6). However the profitability improved due to higher volumes.

The Surface Technologies segment of your Company comprises of the Coatings business, which is under BASF India Coatings Private Ltd, Wholly Owned Subsidiary. During the year under review, the revenues of Coatings business improved due to higher volumes offtake by key customers and improving market share led by GST rationalization for automotive OEM suppliers. However, the margins were lower during the FY 2025-26 due to one-time transition cost.

The Nutrition & Care segment of your Company comprises of the Care Chemicals and Nutrition & Health businesses. The revenues and margins of the Care Chemicals business of the Company improved on account of higher volumes and better selling prices. The revenues of the Nutrition & Health business improved due to higher volume and product mix. The profitability was impacted due to lower price realization driven by oversupplied market and intense competition.

The Chemicals segment of your Company comprises of Intermediates and Petrochemicals businesses. The revenues and the profitability of the Intermediates business was impacted due to lower volumes coupled by lower price realization and higher fixed cost. The revenues and profitability of the Petrochemicals business improved due to higher volumes; however the same were partially offset by lower price realization.

Export sales stood at Rs. 3,484.4 million during the year under review.

Demerger of Company’s Agricultural Solutions Business

BASF SE, Germany (Ultimate Holding Company and Promoter of the Company) has globally implemented a more differentiated approach for steering its Agricultural Solutions business in line with the principles of empowerment, differentiation and simplification. This would enable business & operational flexibility, leverage differentiated steering and create value for the stakeholders.

In connection with the above, the Board of Directors of the Company at its meeting held on May 14, 2025, inter alia, has approved the Scheme of Arrangement (“Scheme”) amongst the Company (“Demerged Company”), BASF Agricultural Solutions India Ltd (“Resulting Company”) and their respective Members, providing for the demerger of the Company’s Agricultural Solutions Business (as defined in the Scheme) to BASF Agricultural Solutions India Ltd and various matters incidental thereto (“Proposed Transaction”) in compliance with Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

Upon the Scheme coming into effect and in consideration of and subject to the provisions of the Scheme, the Resulting Company shall issue and allot fully-paid equity shares of the Resulting Company, on a proportionate basis to the Members of the Demerged Company, whose names are recorded in the register of members and records of the depository as Members of the Demerged Company as on the Record Date (as defined in the Scheme) as follows:

1 (One) fully paid-up equity share of the Resulting Company having face value of Rs. 10 (Rupees Ten) each for every 1 (One) fully paid-up equity share of Rs. 10 (Rupees Ten) each of the Demerged Company.

The Proposed Transaction is, inter alia, subject to receipt of requisite approvals from statutory and regulatory authorities, including the approval from the Members and Creditors of the Company and Hon’ble National Company Law Tribunal, Mumbai. The equity shares of Resulting Company will subsequently be listed on BSE Limited and the National Stock Exchange of India Limited, subject to receipt of requisite approvals from statutory and regulatory authorities.

Your Company is pleased to inform you that the Company has received “No-Objection Letters” from BSE Ltd and National Stock Exchange of India Ltd dated January 30, 2026 & February 2, 2026 respectively towards the Scheme. Further, the Company has also received directions / order from the Hon'ble National Company Law Tribunal dated March 20, 2026 and April 8, 2026 for convening the meeting of the equity shareholders of the Company, for the purpose of considering and approving the Scheme and your Company would convene the equity shareholders meeting accordingly. As regards the Unsecured Creditors of the Company, it may kindly be noted that the Company had obtained consent from more than 90% of the Unsecured Creditors of the Company, and in view thereof, the Hon’ble National Company Law Tribunal has dispensed the requirement of convening the Unsecured Creditors Meeting of the Company. There are no secured Creditors of the Company. All the documents pertaining to the Proposed Transaction are available on the website of the Company at www.basf.com/in, for your information. The Demerger of the Agricultural Solution Business is expected to be completed by end of 2026 / early 2027, subject to approval of Hon'ble National Company Law Tribunal.

Divestiture of Company’s 100% shareholding in BASF India Coatings Private Limited

Globally, BASF SE, Germany (Ultimate Holding Company) had announced that BASF and funds managed by global investment firm Carlyle (NASDAQ: CG), in partnership with Qatar Investment Authority (QIA), had entered into a binding agreement relating to BASF’s automotive OEM coatings, automotive refinish coatings and surface treatment businesses to create a global standalone company.

In India, the automotive OEM coatings and automotive refinish coatings, which were part of your Company was transferred to BASF India Coatings Private Limited, its wholly owned subsidiary, effective January 1, 2025.

In view of the global announcement and after further evaluation and assessment and based on the business valuation provided by an Independent Valuer, the Board of Directors of the Company at its meeting held on March 30, 2026 decided & approved the transfer / sale of the Company’s 100% shareholding held in BASF India Coatings Private Limited, it’s Wholly Owned Subsidiary, to Bond German BidCo 2 GmbH and Bond France BidCo SAS (Carlyle Group Companies) at a consideration of Rs. 2,301.6 million, at closing.

The closing of the transaction is planned during the second quarter of calendar year 2026 and thereafter BASF India Coatings Private Limited would cease to be a wholly owned subsidiary of the Company. As of March 31,2026, BASF India Coatings Private Limited generated revenue from operations of Rs. 5,946 million representing 4% of the consolidated sales of the company and is not a material subsidiary of BASF India Limited.

Acquisition of 26% equity stake in Clean Max Amalfi Private Limited

Your Company has been identifying and implementing sustainable initiatives for procurement of green power to its manufacturing sites under Captive Power Generation Mechanism as per the prevailing renewable energy policy(ies) and the Electricity Act, 2003 and the Rules thereunder.

In terms thereof, your Company has invested in power developer company, Clean Max Amalfi Private Limited for availing renewable power at concessional rates for its manufacturing sites in the State of Gujarat in accordance with the Electricity Act, 2003 and the Rules thereunder. During the financial year 2025-26, the Board of Directors of your Company at its meeting held on July 30, 2025 had approved the acquisition of 26% in the equity share capital of Clean Max Amalfi Private Limited, Special Purpose Vehicle incorporated by Clean Max Enviro Energy Solutions Private Limited, for an amount not exceeding Rs. 65.9 million for procurement of ~ 28,854 MWh (including green attributes) of renewable power (solar & wind) for its manufacturing sites at Dahej and Panoli under Captive Power Generation Mechanism, as per the prevailing renewable energy policy of the State of Gujarat and the Electricity Act, 2003 and the Rules thereunder.

During the financial year i.e., 2024-25 your Company had invested 26% in Clean Renewable Energy KK 2C Private Limited for procurement of renewable power (solar) for its manufacturing site at Mangalore under Captive Power Generation Mechanism.

Closure of Metal Complex Dyes (MCD) Production Line at Company’s Manufacturing Site at Mangalore

Your Company’s MCD business is mostly commoditized and as such has a low strategic relevance and pricing power, which impacted the margins and profitability of this business of the Company. During the financial year 2024-25, the MCD production line, forming part of the Dispersions Business under Industrial Solutions Segment, contributed revenues of approx. Rs. 150.0 million representing 0.1% of the total revenues of the Company. In view of the above, the Board of Directors of your Company at its meeting held on March 30, 2026 approved the closure of Metal Complex Dyes (MCD) Production Line at Company’s manufacturing site at Mangalore. The closure of the MCD production line has been expected to be completed during the last quarter of the calendar year 2026.

Consolidated Financial Statements

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

Your Company does not have any Associate Company or Joint Venture Company as on March 31, 2026.

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 and BASF Agricultural Solutions India Ltd (wholly owned subsidiaries of the Company) in the prescribed Form AOC-1 is provided in Annexure 1 and forms part of this Report. The Unaudited Financial Statements of the wholly owned subsidiaries of the Company are also available on the Company’s website at https://www.basf.com/in/en/india-investors/financial-statements-presentations/ basf-india-coatings-private-limited--wos- and https://www.basf.com/in/en/india-investors/financial-statements-presentations/basf-agricultural-solutions-private-limited--wos-0 and the same are also available for inspection as per the details mentioned in the Notice of 82^nd Annual General Meeting. Your Company will also make available these documents upon request by any Member of the Company interested in obtaining the same.

Transfer to Reserves

The Company has not transferred any amount to the Reserves for the financial year ended March 31, 2026.

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 31,2026 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/-.

Out of the 43,285,640 equity shares of Rs. 10 each, 682 equity shares of Rs. 10 each were issued and allotted pursuant to the Rights Issue(s) in 1995 and 1996, and were then kept in abeyance due to pending legal cases/ disputes.

Dividend

The Board of Directors of your Company have recommended a Dividend of Rs. 25 per equity share i.e., 250% for the financial year ended March 31, 2026. The Dividend would be paid, subject to the approval of the Members at the forthcoming Annual General Meeting to be held on August 12, 2026.

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.lv/BASFDividendDistributionPolicv.

Changes in Directors

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

i) Resignation of Mr. Marcelo R. Lu as a Director of the Company

Mr. Marcelo R. Lu (DIN: 10462274) resigned as the Non-Executive and Non-Independent Director of the Company, with effect from November 30, 2025 as he has decided to pursue his career outside BASF. The Board of Directors of the Company have put on record their appreciation for the invaluable contributions made by Mr. Marcelo R. Lu as a Director of the Company.

ii) Appointment of Mr. Andrew Postlethwaite as Non-Executive and Non-Independent Director of the Company Based on the recommendation of the Nomination and Remuneration Committee, Mr. Andrew Postlethwaite (DIN: 03532678) was appointed as the Non-Executive Non-Independent Director of the Company by the Board of Directors of the Company, effective December 1, 2025. Further, the appointment of Mr. Andrew Postlethwaite was also approved by the Members of the Company by way of Postal Ballot on December 30, 2025.

Mr. Andrew Postlethwaite, has graduated from the University of New England, Australia with a Master’s in Business Administration. He joined BASF New Zealand Limited as a Marketing Trainee in 1986 and then in 1993 worked as Industry Manager in Paper Chemicals business. He took up assignments in Sales & Material Management and Regional Information Systems of BASF South East Asia Pte. Ltd., Singapore in 1997 and 2000 before being appointed as Director, Life Science & Functional Polymers, Corporate Strategy, BASF (Malaysia) Sdn. Bhd. In 2005, Mr. Andrew Postlethwaite was part of Fine Chemicals for BASF (China) Company Ltd. In 2008, Mr. Andrew Postlethwaite became Vice President, Nutrition & Health, Asia Pacific, BASF East Asia Regional Headquarters Ltd., Hong Kong. In 2011, Mr. Andrew Postlethwaite was appointed as the Senior Vice President, Performance Materials, Asia Pacific. Later in 2017, he was appointed as a Director on the Board of BASF South East Asia Pte. Ltd, Singapore and in 2025, he was appointed as its Managing Director.

iii) Re-appointment of Mr. Pradip P. Shah and Dr. Ramkumar Dhruva as Directors of the Company: -

In accordance with the provisions of Section 152 (6) of the Companies Act, 2013, Mr. Pradip P. Shah (DIN: 00066242) and Dr. Ramkumar Dhruva (DIN: 00223237), Non-Executive Directors of the Company being eligible, offers themselves for re-appointment as Directors (in the same capacity) of the Company at the 82^nd Annual General Meeting of the Company to be held on August 12, 2026.

As required under the SEBI Listing Regulations, the details of Mr. Pradip P. Shah and Dr. Ramkumar Dhruva, Directors 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. Your Company had Nil borrowings as at the end of financial year 2025-2026.

Your Company continued to focus on managing cash efficiently and ensured that it had adequate credit lines from Company’s bankers.

Capital Expenditure

Capital expenditure incurred during the year under review aggregated to Rs. 2,132.1 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.

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 M/s Deloitte Haskins & Sells LLP, Chartered Accountants (Firm Regn. No. 117366W/W-100018) (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.

Mr. Bahram Vakil (Chairman), Ms. Sonia Singh, Independent Director and Mr. Anil Kumar Choudhary, Manufacturing Head & Whole-time Director are the Members of the CSR Committee.

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, two meetings of the CSR Committee were held on July 30, 2025 and February 13, 2026 to review and recommend to the Board of Directors, the CSR activities to be undertaken by the Company during the financial year 2025-2026.

Your Company was required to spend an amount of Rs. 129.3 million (Gross Amount) during the financial year 2025-2026 towards CSR projects / activities.

The details of the ongoing CSR projects initiated by the Company, are provided in Annexure II of this Report. Business Responsibility & Sustainability Report

As per Regulation 34(2) of the SEBI Listing Regulations, your Company has included BRSR as part of this Report for the financial year 2025-26, as Annexure Ill, describing the initiatives taken by the Company from an environmental, social and governance perspective.

In line with the SEBI listing requirements, your Company being part of the top 500 listed entities, was required to obtain Reasonable Assurance Certificate from an Independent Certifying Agency on certain key parameters of Business Responsibility and Sustainability Report (BRSR Core Indicators). The Board of Directors of the Company appointed TUV SUD South Asia Private Limited (TUV SUD), an independent agency to carry out the Reasonable Assurance on BRSR Core Indicators for the financial year ended March 31, 2026. The Reasonable Assurance Certificate issued by TUV SUD South Asia Private Limited, which was considered by the Board of Directors of the Company, has also been attached as a part of the BRSR Report for the financial year 2025-2026.

Further, the BRSR Report together with the Reasonable Assurance Certificate for the financial year 2025-2026 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.lv/BASFWhistleBlowerPolicv.

Directors’ Responsibility Statement

Your Directors confirm that:

(i) i n the preparation of the annual standalone and consolidated financial statements, the applicable accounting standards have been followed;

(ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended March 31, 2026 and of the profit of the Company for that period;

(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) they have prepared the annual standalone and consolidated financial statements on a going concern basis;

(v) t hey have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively; and

(vi) t hey have devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with sub-rule 3 of Rule 8 of the Companies (Accounts) Rules, 2014, forms part of this Report as Annexure IV.

Performance Evaluation

Pursuant to the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, your Company has devised a policy containing criteria for evaluating the performance of the Executive, Non-Executive and Independent Directors, Key Managerial Personnel, Board and its Committees. Feedback was sought by way of a structured questionnaire covering various aspects of the Board’s functioning, such as adequacy of the composition of the Board and its

Committees, Board culture, execution and performance of specific duties, obligations, and governance. The manner in which the evaluation has been carried out is explained in the Corporate Governance Report, forming part of this Annual Report.

The Board of Directors of your Company expressed satisfaction about the transparency of disclosures, maintenance of higher governance standards and updation of the Non-Executive and Independent Directors on key topics impacting the Company. The suggestions provided by the Board of Directors of the Company were implemented during the financial year 2025-2026. Your Company will continue to improve and implement the valuable suggestions provided by the Board of Directors of the Company during the year 2026-2027.

Policy on Directors’ appointment and remuneration

The policy on Directors’ appointment and remuneration including determination of the qualifications, positive attributes, independence of a Director and other matters provided under Section 178(3) of the Companies Act, 2013, forms part of the Nomination & Remuneration Policy of the Company. This policy is available on the Company’s website and can be accessed at: https://bit.ly/BASFNRCPolicy.

Statutory Auditors

M/s Deloitte Haskins & Sells LLP, Chartered Accountants, (Firm Regn. No. 117366W/W-100018), Mumbai, had appointed as Statutory Auditors of the Company for a period of 5 years at the Annual General Meeting held on August 7, 2024 i.e. upto the conclusion of the Annual General Meeting to be held in the calendar year 2029.

M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, (Firm Regn. No. 117366W/W-100018) have confirmed to the Board of Directors of the Company that they are eligible to continue as the Statutory Auditors of the Company and that they continue to satisfy the criteria as specified under the provisions of Section 139 and Section 141 of the Companies Act, 2013.

Further, in alignment with the Statutory Auditors, the Board of Directors of the Company has also constituted the Those Charged With Governance (TCWG) sub-committee, based on the circular of the National Financial Reporting Authority (NFRA) and the said sub-committee had its meeting before the Audited Standalone and Consolidated Financial Statements of the Company for the financial year ended March 31, 2026 were approved by the Board of Directors on May 19, 2026.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company had appointed M/s HSPN & Associates, Practicing Company Secretaries as Secretarial Auditors of the Company for a period of 5 years at the Annual General Meeting held on August 12, 2025 i.e. upto the conclusion of the Annual General Meeting to be held in the calendar year 2030, to conduct the Secretarial Audit of the Company and to furnish the report to the Board. The Secretarial Audit Report dated May 19, 2026, as considered by the Board of Directors of the Company, forms part of this Report as Annexure V.

Qualifications / Reservations in the Auditors’ Report & Secretarial Audit Report

There are no qualifications / reservations placed by the Statutory Auditors and the Secretarial Auditor in their respective Reports for the financial year ended March 31, 2026.

Compliance with Secretarial Standards

Your Company has duly complied with the applicable Secretarial Standards (‘SS’) issued by the Institute of Company Secretaries of India relating to Meetings of the Board and its Committees (‘SS1’) and General Meetings (‘SS2’), respectively, during the year under review.

Reporting of Frauds by Auditors

During the year under review, there have been no instances of fraud committed against the Company by its officers or employees, that were required to be reported to the Audit Committee / Board of Directors of the Company, by the Statutory Auditors or the Secretarial Auditor under Section 143(12) of the Companies Act, 2013.

Cost Audit

The Board of Directors, in pursuance of Section 148 of the Companies Act, 2013, have appointed M/s. R. Nanabhoy & Co., Cost Accountants, Mumbai, having Registration No. 000010, for conducting the audit of the cost accounting records of the Company for the financial year 2026-2027. The Cost Auditors have confirmed that their appointment is within the limits of Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified from acting as the Cost Auditors of the Company. The Cost Audit report for the financial year 2025-26 would be adopted by the Board of Directors of the Company on or before September 30, 2026.

Composition of the Audit Committee

As required by Section 177(8) read with Section 134(3) of the Companies Act, 2013 and the Rules framed thereunder, the composition of the Audit Committee is in line with the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, details of which are provided in the Corporate Governance Report, forming part of this Annual Report.

Related Party Transactions

All related party transactions that were entered into by the Company during the financial year 2025-2026 were on arms’ length basis. There are no materially significant related party transactions entered into by the Company with its Promoters, Directors, Key Managerial Personnel or other Related Parties, which may have a potential conflict with the interest of the Company at large.

All related party transactions are placed before the Audit Committee for its approval. Prior omnibus approval of the Audit Committee is obtained for transactions, which are repetitive in nature. A statement giving details of all related party transactions is placed before the Audit Committee and the Board of Directors for their approval on a quarterly basis. The policy on Related Party Transactions, as approved by the Board, is available on the Company’s website and can be accessed at: https://bit.ly/BASFRPTPolicy.

Your Board of Directors draw the attention of the Members to Note No. 51 of the Standalone Financial Statements, which sets out related party disclosures under the Indian Accounting Standards (IND AS).

Further, the disclosures as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2, form part of this Report, as Annexure VI.

Particulars of loans, guarantees or investments under Section 186 of the Companies Act, 2013

During the financial year 2025-2026, the Company has placed Inter-Corporate Deposits with BASF Catalysts India Private Limited and BASF Chemicals India Private Limited, affiliates of your Company and BASF India Coatins Private Limited, wholly owned subsidiary of your Company. The details of amount outstanding as of March 31, 2026 was as follows: -

BASF India Coatings Private Limited - Rs. 120 Million

Your Directors draw the attention of the Members to Note of the Standalone Financial Statements, which sets out the disclosures under the Indian Accounting Standards (IND AS).

Weblink of Annual Return

The Annual Return of the Company for the financial year ended March 31, 2026 in Form MGT-7 is available on the Company’s website at www.basf.com/in

Particulars of Employees

The particulars of employees required to be furnished pursuant to Section 197(12) of the Companies Act, 2013 read with sub-rules 2 and 3 of Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, forms part of this Report as Annexure VII. However, as per the provisions of Section 136 of the Companies Act, 2013, read with sub-rules 2 and 3 of Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Annual Report excluding the statement of particulars of employee is being sent to all the Members of the Company. Any Member interested in obtaining a copy of the said statement may write to the Company Secretary at manohar.kamath@basf.com

Prevention of Sexual Harassment at the Workplace

Your Company gives prime importance to the dignity and respect of its employees irrespective of their gender or hierarchy and expects responsible conduct and behaviors on the part of employees at all levels. Providing a safe and congenial work environment for all employees is an integral part of the Company’s Code of Conduct.

As per the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has adopted a Policy for Prevention of Sexual Harassment at Workplace and has constituted an Internal Committee (IC). The names of the IC Members are displayed on the notice board in each office and manufacturing site. All employees as well as contract staff and trainees are covered by this policy. Allegations of sexual harassment reported are expeditiously and discreetly investigated and disciplinary action, if required, is taken in accordance with the policy.

There were no complaints of sexual harassment received during the financial year 2025-2026.

Training programs on prevention of sexual harassment at the workplace are also conducted at regular intervals. During the year under report, your Company conducted awareness programmes on the policy for its employees. Your Company had also rolled out an e-learning module to sensitize & create awareness amongst the employees of the Company on prevention of sexual harassment.

Risk Management

Your Company has in place a mechanism to inform the Board about the risk assessment and minimization procedures and undertakes periodical review of the same to ensure that the risks are identified and controlled by means of a properly defined framework. In the Board’s view, the Company has put in place appropriate mitigation measures to the key risks identified during the Risk Management Committee, including the implications of the geo-political risks, supply chain risks and the cyber security risks and the effects associated thereof on the Company.

Internal Financial Control Systems and their adequacy

Your Company has policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, safeguarding of its assets, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. Additional details on Internal Financial Controls and their adequacy are provided in the Management Discussion and Analysis Report, forming part of this Annual Report.

Significant and material orders passed by Regulators or Courts

Certain litigations pending with Regulators or Courts have been disclosed as Contingent Liabilities in Note no. 40 of the Standalone Financial Statements for the financial year ended March 31, 2026. There are no significant and material orders passed by the Regulators / Courts, which would impact the going concern status of the Company and its future operations.

Material changes and commitments affecting the financial position of the Company

There have been no material changes and commitments affecting the financial position of the Company, which have occurred between the end of the f nancial year of the Company to which the f nancial statements relate and the date of this Report on account of the ongoing geo-political crisis around the world.

Board Meetings

Seven (7) Board Meetings were held during the financial year 2025-2026 on the following dates:

(1) April 25, 2025 (2) May 14, 2025 (3) July 30, 2025

(4) August 12, 2025 (5) November 14, 2025 (6) February 13, 2026

(7) March 30, 2026 Declaration of Independence

The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013 and the SEBI Listing Regulations as amended.

Other Disclosures

• The Company has not issued any shares with differential voting rights / sweat equity shares.

• There was no revision in the Audited Financial Statements of the Company for the financial year ended March 31, 2025.

• There has been no change in the nature of business of the Company as on the date of this report.

• There are no proceedings fled against the Company under the Insolvency and Bankruptcy Code, 2016 during the financial year 2025-2026. Your Company has initiated action against few customers under the Insolvency and Bankruptcy Code, 2016.

Employee Relations

Your Directors place on record their sincere appreciation of the contribution made by the employees at all levels to the growth of the Company. Industrial Relations at all our manufacturing sites remained cordial.

Acknowledgments

The Board of Directors take this opportunity to thank BASF SE, Germany and all other stakeholders including customers, suppliers, bankers, business partners/ associates, Central and State Governments, regulatory authorities and the society at large for their consistent support and co-operation to the Company. Your Directors thank the Members and Investors for their confidence in the Company.