(h) Provisions, contingent liabilities and contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised
in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted
to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will
be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability.
Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non - occurrence of one or more uncertain future events not wholly
within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.
Contingent assets are not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset.
(i) Revenue
Revenue is recognised upon transfer of control of promised goods to customers for an amount that reflects the
consideration which the Company expects to receive in exchange for those goods.
Sale of goods
Revenue from the sale of goods are recognized when control of the goods has been transferred to the customer and
when there are no longer any unfulfilled obligations to the customer. Depending on the contractual terms with the
customers, this can be either at the time of dispatch, delivery or upon formal acceptance by the customer. This is
considered the appropriate point where the performance obligations in our contracts are satisfied as the Company
no longer have control over the inventory. The Company does not provide any warranties or maintenance contracts
to its customers.
Other income
Interest
Interest revenue is calculated by using the effective interest method for financial assets measured at amortised cost.
Interest income is recognised on an accrual basis.
Service & Miscelleneous income
Service income includes cross charges for employee services provided to related entities. Income from these
services is recognized in the financial statements when the services are rendered and invoiced, as per the terms
of the relevant agreement. The revenue is determined based on the total cost incurred plus a markup specified in
the contractual terms. This approach ensures that income is matched with the related costs and is systematically
recognized over the period during which the services are provided. Miscellaneous other income includes lease
rentals, sale of scrap of packaging materials which comes along with the raw materials and reimbursement of
expenses incurred on behalf of related companies.
(j) Income taxes
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or profit for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best
estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income
taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also
recognised in respect of carried forward tax losses and tax credits.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be
available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the
extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable
profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or
recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
(k) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing
performance of the operating segments of the Company. For the disclosure on reportable segments see Note 31.
(l) Cash and cash equivalents
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank
balances, demand deposits with banks where the original maturity is three months or less and other short
term highly liquid investments.
(m) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of
equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after
tax as adjusted for the effects of dividend, interest and other charges relating to the dilutive potential equity shares
by weighted average number of equity shares plus dilutive potential equity shares.
(n) Rounding off amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the
requirement of Schedule III, unless otherwise stated.
31 Segment reporting
A. Factors used to identify the entity’s reportable segments, including the basis of organisation
The Company is exclusively engaged in the business of manufacturing, trading and selling of Thermoplastic
Elastomers, Silicone Masterbatch and related products. As per Ind AS 108 ‘Operating Segment' specified under
Section 133 of the Act, there are no reportable segments applicable to the Company.
B. Geographic information
The geographic information analyses the Company's revenue and non-current assets by the Company's country of
domicile and other countries. In presenting the geographic information, segment revenue has been based on the
geographic location of customers and segments assets were based on the geographic location of the respective
non-current assets.
The products offerings of the Company are managed from India to cater the needs of domestic and international
customers.
All the non-current assets of Company are located within India.
C. Information about major customers
Revenues from three major customers represented approximately INR 2,239.24 lakhs (March 31,2024: INR 2,370.43
lakhs), INR 2,133.12 lakhs (March 31, 2024: INR 1,404.08 lakhs) and INR 1,242.96 lakhs (March 31, 2024: INR
1,240.59 lakhs) of the Company's total revenues.
32 Employee benefits
(A) Defined contribution plans:
The Company recognised INR 20.23 lakhs for the year ended March 31, 2025 (March 31, 2024: INR 23.14 lakhs)
towards provident fund contribution in the Statement of Profit and Loss.
B. Calculation of fair values
(i) The fair values of the financial assets and liabilities are defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. Methods and assumptions used to estimate the fair values are consistent with those used for the year
ended March 31,2024.
(ii) Cash and cash equivalents, trade receivables, trade payables and other financial liabilities have fair values that
approximate to their carrying amounts due to their short-term nature.
35 Financial risk management
The Company has exposure to the following risks arising from the financial instruments:
a) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. The carrying amount of financial assets represent the maximum credit exposure.
Impairment of financial assets
Management evaluates credit risk of trade receivables and other financial assets based on past due information.
Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in
full, based on historical payment behaviour and extensive analysis of customer credit risk and the current provision
for the bad debts represents the impacted credit loss it foresees in its receivables. The credit risk rating grade of
unimpaired amount is considered as fully collectible.
Based on the assessment of credit risk rating grades of banks where balances are held, the management considers
the balances with banks are unimpaired.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company's reputation.
38 Contingent liabilities (Continued)
(b) An addition was made under Section 154 due to a difference in interest income, resulting in a tax demand of INR 1.82
lakhs. The Company disagreed with the addition and filed a rectification application with the tax authorities.
(c) A show cause notice was issued alleging ineligibility of CENVAT credit on sales commission under input services,
involving a tax demand of INR 1.62 lakhs for the period Jan-Sept 2010. The Company has filed its reply on
February 11,2011; the matter is still pending adjudication. Based on judicial precedents supporting similar cases, a
contingent liability is maintained.
41 Transfer pricing
Transactions with related parties are governed by transfer pricing regulations of the Indian Income-tax Act, 1961. The
Company's international transactions with related parties are at arm's length as per the independent accountants report
for the year ended March 31, 2024. Management believes that the Company's international and domestic transactions
with related parties post March 31, 2025 continue to be at arm's length and that the transfer pricing regulations will not
have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
42 Additional regulatory information
(i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) Relationship with struck off companies
The Company has no transactions with the companies struck off under Section 248 of the Act or Section 560 of the
Companies Act, 1956.
(iii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.
(iv) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(v) Valuation of property plant and equipment
The Company has not revalued its property, plant and equipment during the current or previous year.
42 Additional regulatory information (Continued)
(viii) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(ix) Utilisation of borrowed funds and share premium
(a) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) (or) ii. provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries
(b) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or ii. provide any guarantee, security or the like on behalf
of the ultimate beneficiaries.
(x) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(xi) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India and the Company does not have any CICs, which are part of the Group.
(xii) The Company doesn't have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
43 During the year, the Company paid a special dividend of INR. 6,688.60 lakhs (INR. 53 per share) during September 2024
results and a final dividend of INR. 378.60 lakhs (INR. 3 per share) for FY 2023-24 to its shareholders.
44 The Company has used an accounting software for maintaining its books of account, which has a feature of recording
the audit trail (edit log) facility. except that the audit trail feature in respect of certain relevant transactions and fields at
the application level. (FB02, ME22, MRBR, VB02, LFA1, LFB1, MARM and MARC which captures critical financial table
changes and Field level changes recorded within key table - MLAN which captures critical financial field changes) from
February 04, 2025. Further, the audit trail feature at the database level within the accounting software to log any direct
data change was enabled from January 25, 2025.
Further, to the extent enabled, the audit trail feature has been operated for the relevant transactions recorded in the
accounting software. Also, we did not come across any instance of the audit trail feature being tampered with. Additionally,
the audit trail feature has been preserved by the Company as per the statutory requirements for record retention to the
extent it was enabled and recorded in respective years.
45 Previous year figures have been regrouped/reclassified where necessary to conform to current period classification.
The notes referred to above form an integral part of the financial statements.
As per our report of even date attached
For M S K A & Associates For and on behalf of the Board of Directors of
Chartered Accountants Multibase India Limited
ICAI Firm Registration No. 105047W CIN : L01122DD1991PLC002959
Mukesh Kumar Pugalia Pankaj Kumar Holani B. Renganathan Piyush Chhajed
Partner Managing Director Non-Executive Director Non-Executive Director
ICAI Membership No : 221387 DIN : 10843892 DIN : 01206952 DIN : 02907098
Parmy Kamani Ashish Bhatt
Company Secretary Chief Financial Officer
Membership no. A27788
Place : Mumbai Place : Mumbai Place : Mumbai Place : Mumbai
Date : May 29, 2025 Date : May 29, 2025 Date : May 29, 2025 Date : May 29, 2025
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