1.  Contingent Liabilities
 
                                                       Rs. Mio.
 
 Nature                                      2011-12      2010-11
 
 Contingent Liabilities not 
 Provided for
 
 (a)  Claim against the Company not 
 acknowledged as debt                          22.2       31.1
 
 In respect of which the Company has 
 counterclaim                                  68.7       67.0
 
 (b)  Demand for taxes and duties in 
 respect of which the company
 has preferred appeals with appropriate 
 authority
 
 a.   Income Tax                               18.4       32.0
 
 b.   Customs, Excise, Service Tax and 
      Sales Tax                               175.9      142.7
 
 2.  Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided (net of advances) for Rs. 280.0 million
 (Previous Year Rs. 257.2 million).
 
 3.  Purchase of specialty chemicals business of Cognis Specialty
 Chemicals India Private Limited
 
 Pursuant to an Agreement entered into between BASF India Limited (''the
 Company'') and Cognis Specialty Chemicals India Private Limited
 (''Cognis''), the specialty chemicals business of Cognis was acquired
 from 1st July, 2011 for consideration of Rs. 134 Mio. The assets and
 liabilities of Cognis have been taken over at fair value as determined
 by an independent valuer and the difference between the fair value of
 the net assets purchased over the consideration paid aggregating to Rs.
 68.8 Mio. has been accounted as Goodwill.
 
 4.  Amalgamation of BASF Coatings (India) Private Limited (BCIN), BASF
 Construction Chemicals (India) Private Limited (BCC) and BASF
 Polyurethanes India Limited (BPIL) with BASF India Limited (BIL or the
 Company)
 
 Pursuant to the Scheme of Amalgamation (''the scheme'') as approved in
 the court convened shareholder meeting held on 3rd November, 2010 and
 subsequently sanctioned by the Honourable High Court of Bombay vide its
 order dated 14th January, 2011, BCIN, BCC, BPIL (wholly owned
 subsidiary of the Company) (collectively referred to as the
 amalgamating companies) were merged with the Company. The amalgamating
 companies were engaged in the business of manufacturing and trading of
 resins, thinners and varnishes, building & construction materials &
 polyurethane systems house and polyesterols.
 
 As provided in the Scheme of Amalgamation, 619,589 equity shares of BIL
 (representing 1.43% of equity share capital as at 31st March, 2011)
 were issued against 37,175,399 shares of BCIN (representing 100% of
 equity share capital as at 1st April, 2010) and 1,896,064 equity shares
 of BIL (representing 4.38% of equity share capital as at 31st March,
 2011) were issued against 2,464,885 shares of BCC (representing 100% of
 equity share capital as at 1st April, 2010). 9,000,000 equity shares
 (representing 100% of equity share capital as at 1st April, 2010 of
 BPIL) and BILs investment in such equity shares held by the Company
 were cancelled. Accordingly 2,515,653 equity shares of Rs. 10/- each
 fully paid up were issued to the equity share holders of the BCIN and
 BCC without payment being received in cash.
 
 As per the Scheme of Amalgamation, the ''Appointed Date'' is 1st April,
 2010. The amalgamation was accounted under the pooling of
 interests method as prescribed by Accounting Standard 14 on
 Accounting for Amalgamations.  Accordingly:
 
 (i) All the assets and liabilities of BCIN, BCC and BPIL were
 transferred and vested in the Company at book values with effect from
 1st April, 2010. The reserves of the amalgamating companies appear in
 the same form in the financial statements of the Company.
 
 (ii) As specified in the scheme of amalgamation, the difference between
 the amount recorded as share capital issued (Rs. 25.2 Mio.) and the
 amount of share capital of the amalgamating companies (Rs. 396.4 Mio.)
 aggregating to Rs. 371.2 Mio. was adjusted in amalgamation reserves.
 
 (iii) The book values of the intercompany balances and holdings were
 cancelled.
 
 5.  Employees benefits:
 
 Defined contribution plans:
 
 Company''s contribution to defined contribution funds amounting to Rs.
 82.5 Mio. (Previous year Rs. 63.7 Mio.) has been charged to the
 Statement of Profit and Loss.
 
 Defined benefit plans and other long term employee benefits:
 
 Gratuity is payable to all eligible employees of the Company on
 superannuation, death, permanent disablement and resignation in terms
 of provisions of the Payment of Gratuity Act, 1972, or as per the
 Company''s scheme whichever is more beneficial. The Company irrevocably
 contributes funds to a separate Gratuity Trust which is recognised by
 Income Tax authorities.
 
 Eligible employees can carry forward and encash leave on
 superannuation, death, permanent disablement and resignation as per
 Company''s policy.
 
 Long Service Awards are payable to employees on completion of specified
 years of service at the rate of 0.5 month to 1.5 months eligible
 salary.
 
 The expected rate of return on assets is based on the expectation of
 the average long term rate of return on investment of the fund, during
 the estimated term of obligation.
 
 The obligations are measured at the present value of estimated future
 cash flows by using a discount rate that is determined with reference
 to the market yields at the Balance Sheet date on Government Bonds
 which is consistent with the estimated terms of the obligation.
 
 The estimate of future salary increase, considered in the actuarial
 valuation, takes account of inflation, seniority, promotion and other
 relevant factors such as supply and demand in the employment market.
 
 Provident fund
 
 The Company has an obligation to fund any shortfall on the yield of the
 trust''s investments over the administered interest rates on an annual
 basis. These administered rates are notified by the Government
 annually. The Actuarial Society of India has issued the final guidance
 for measurement of provident fund liabilities during the year ended
 March 31, 2012.  The actuary has accordingly provided a valuation based
 on the below provided assumptions and there is no shortfall as at March
 31, 2012.
 
 Notes on Segment Information:
 
 1.  Segments have been identified in accordance with the Accounting
 Standard on Segment Reporting (AS-17).  Business Segments have been
 considered as primary segments.
 
 2.  Details of type of products included in each segment —
 
 — Agricultural Solution - includes Agrochemicals. Agricultural
 Solution is seasonal in nature.
 
 — Performance Products - Tanning agents, Leather Chemicals, Textile
 Chemicals, Dispersion Chemicals, Specialty Chemicals and high-value
 fine Chemicals for the food, pharmaceuticals, animal feed and cosmetics
 industries.
 
 — Plastics - Expandable Polystyrene (EPS), Engineering Plastics and
 Polyurethanes.
 
 — Chemicals - Chemicals includes inorganic chemicals, intermediates
 and petrochemicals.
 
 — Functional Solution - Functional Solution includes coatings and
 construction chemicals.
 
 — Others - includes technical and service charges.
 
 3.  Un-allocable Corporate Assets include Net Deferred Tax Assets and
 other un-allocable assets.
 
 4.  Un-allocable Corporate Liabilities include Proposed Dividend and
 other un-allocable liabilities.
 
 6.  Transfer pricing regulations:
 
 The management is of the opinion that the Company''s international
 transactions are at an arms length so that aforesaid legislation will
 not have any impact on the financial statements, particularly on the
 amount of tax expense and that of provision for taxation.
 
 7.  Foreign currency exposure details:
 
 As on 31st March, 2012, the Company has 67 forward contracts totalling
 to USD 73.60 Mio. (Rs. 3,671.00 Mio.) for the purposes of hedging its
 foreign currency exposure. The unamortized premium of Rs. 50.15 Mio.
 pertaining to the same will be recognized subsequently. Foreign
 currency exposure that is not hedged as at 31st March is as follows:
 
 8.  Previous year figures are regrouped/reclassified pursuant to
 adoption of requirements of revised Schedule VI of Companies Act, 1956.