Notes to Accounts of Multibase India Ltd.

Mar 31, 2025

(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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Mar 31, 2024

b) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of INR. 10 each. Each shareholder is eligible for one vote per share held. Dividend proposed by Board of Directors, if any is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

* Amount pertaining to INR 1 Lakhs (March 31,2023 INR 15 Lakhs) were to a firm other than current statutory auditors.

** Amount pertaining to INR 1.23 Lakhs (March 31,2023 INR 1.5 Lakhs) were to a firm other than current statutory auditors.

30 Corporate social responsibility

The Company has spent INR 21.25 lakhs (March 31, 2023: INR 18.97 lakhs) towards scheme of Corporate Social Responsibility as prescribed under Section 135 of the Act. The details are:

1) Gross amount required to be spent by the Company during the year INR 21.25 lakhs (March 31,2023 : 18.95)

2) Amount spent during the year:

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 Companies Act 2013, 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.

C. Information about major customers

Revenues from three major customers represented approximately INR 2,370.43 lakhs (March 31,2023: INR 2,919.49 lakhs), INR 1,404.08 lakhs (March 31, 2023: INR 1,175.33 lakhs) and INR 1,240.59 lakhs (March 31, 2023: INR 1,458.57 lakhs) of the Company''s total revenues.

32 Employee benefits

(A) Defined contribution plans:

The Company recognised INR 23.14 lakhs for the year ended March 31, 2024 (March 31, 2023: INR 20.13 lakhs) towards provident fund contribution in the Statement of Profit and Loss.

(B) Defined Benefit Plan:

The most recent actuarial valuation of the defined benefit obligation in relation to the gratuity scheme was carried out at March 31,2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation at the balance sheet date:

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 12.29 years (March 31,2023: 12.62 years).

(C) Other long-term employee benefits:

Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The total liability for compensated absences as at the year end is INR 63.89 lakhs (March 31, 2023: INR 57.34 lakhs), as shown under non-current provisions INR 62.16 lakhs (March 31, 2023: INR 55.76 lakhs) and current provisions INR 1.73 lakhs (March 31, 2023: INR 1.58 lakhs). The amount charged to the Statement of Profit and Loss is INR 6.55 lakhs (March 31,2023 : INR 33.85 lakhs).

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 31,2023.

(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 forsees 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.

Exposure to liquidity risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments.

c) Market risk

The Company is exposed to currency risk on account of its trade receivables, other financial assets and trade payables in foreign currency. The functional currency of the Company is Indian Rupee.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign currencies against INR at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

d) Interest Rate Risk

Company doesnot have borrowings , hence is not exposed to interest rate risk

e) Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

38 Contingent liabilities: Claims against the Company not acknowledged as debts :
	March 31,2024	March 31,2023
Income tax matter	10.26	1.82
Service tax matter	1.62	1.62
Future cashflows in respect of the above matters is determinable only on receipts of judgement / decisions pending at various forums / authorities. 39 Capital Commitments
	March 31,2024	March 31,2023
Estimated amount of contracts remaining to be executed on capital account and not provided for	12.29	16.65

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 31 March 2023. Management believes that the Company''s international and domestic transactions

with related parties post March 31, 2023 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 Companies Act, 2013 or 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, intangible asset and investment property

The Company has not revalued its property, plant and equipment during the current or previous year.

The Company does not have any borrowings and investments during the current period and previous period, accordingly the debt-equity, debt service coverage, return on investment ratios have not been presented.

(vii) Other regulatory information

(a) The title deeds of all the immovable properties, as disclosed in note 3 to the financial statements, are held in the name of the company.

(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 Group does not have any CICs, which are part of the Group.

43 On May 29, 2024, the Board of Directors of the Company have recommended a final dividend of 30 % i.e., '' 3/- per equity share for the financial year ended March 31,2024 subject to the approval of shareholders at the Annual General Meeting and if approved, would result in a cash outflow of approximately INR. 378.60 lakhs.

The notes referred to above form an integral part of the financial statements

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Mar 31, 2023

(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.

(j) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee (Assets taken on lease)

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of use assets representing the right to use the underlying assets.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of property, plant and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value . Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term or another systematic basis if that basis is more representative of the pattern of the lessee''s benefit.

Company as a lessor

Lease income from operating leases where the company is a lessor is recognised in income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.

(k) 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.

(l) Borrowing cost

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

(m) 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.

(n) Cash and cash equivalents

Cash and Cash equivalents for the purpose of Statement of Cash flows 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.

(o) 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.

(p) 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 Segments'' specified under Section 133 of the Companies Act 2013, 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.

C. Information about major customers

Revenues from three major customers represented approximately INR 2,919.49 lakhs (March 31, 2022: INR 1,978.13 lakhs), INR 1,458.57 lakhs (March 31,2022: INR 1,031.94 lakhs) and INR 1,175.33 lakhs (March 31,2022: INR 1,021.03 lakhs) of the Company''s total revenues.

32 Employee benefits

(A) Defined contribution plans:

The Company recognised INR 20.13 lakhs for the year ended March 31,2023 (March 31, 2022: INR 18.09 lakhs) towards provident fund contribution in the Statement of Profit and Loss.

(B) defined Benefit plan:

The most recent actuarial valuation of the defined benefit obligation in relation to the gratuity scheme was carried out at March 31,2023. The present value of the defined benefit obligation was measured using the Projected Unit Credit Method. The Company''s defined benefit plan is unfunded.

(C) Other long-term employee benefits:

Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The total liability for compensated absences as at the year end is INR 57.34 lakhs (March 31, 2022: INR 23.49 lakhs), as shown under non-current provisions INR 55.76 lakhs (March 31, 2022: INR 22.89 lakhs) and current provisions INR 1.58 lakhs (March 31, 2022: INR 0.60 lakhs). The amount charged to the Statement of Profit and Loss is INR 33.85 lakhs (March 31,2022 : INR 3.21 lakhs).

33 Related party disclosures a) List of related parties

Related parties where control exists:

Ultimate Holding Company

DuPont de Nemours Inc.

Holding Company

Multibase S.A, France

Directors and Key Management personnel (KMp)

Mr. Deepak Dhanak- Managing Director

Ms. Parmy Kamani- Company Secretary (effective from 10.11.2021)

Ms. Sunaina Goraksh - Company Secretary (upto 30.09.2021)

Mr. Pankaj Holani- Chief Financial Officer

Mr. Harish Narendra Motiwalla- Independent Director

Mr. Ashok Faqirchand Chhabra- Independent Director

Ms. Bharti Dhar - Independent Director

Mr. Krishan Kumar Phophalia - Non Executive Director

Mr. R T Paulin - Non Executive Director (upto 26.05.2022)

Mr. Mark Stephen Metaxas - Non Executive Director (effective from 26.05.2022) Other related parties

Cuposit Electronic Materials Zhangjiang Co, Ltd DDP Specialty Electronic Materials US, Inc.

DDP Speciality Electronic Materials US 9, LLC DDP Speciality Products India Private Limited DDP Speciality Products Korea Limited DSP Singapore Holdings Pte Ltd DuPont Specialty Products USA LLC DuPont Toray Specialty Materials Multibase Inc.

Performance Specialty Products India Pvt Ltd DuPont Specialty Products India Private Ltd DuPont Specialty Products Philippines Inc.

ROHM and HAAS Electronic Materials Taiwan Ltd.

Specialty Electronic Materials Switzerland GMBH Specialty Electronic Materials (Thailand) Company Limited

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 31,2022.

(ii) Cash and cash equivalents, other bank balances, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

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 forsees 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.

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

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, 2022. Management believes that the Company''s international and domestic transactions with related parties post March 31, 2022 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 Companies Act, 2013 or 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, intangible asset and investment property

The Company has not revalued its property, plant and equipment during the current or previous year.

(vii) Rounding of 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.

(viii) Other regulatory information

(a) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 3 to the financial statements, are held in the name of the Company.

(b) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(ix) 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.

(x) 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.

(xi) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(xii) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and the Group does not have any CICs, which are part of the Group.

43 On May 23, 2023, the Board of Directors of the Company have recommended a final dividend of 20% i.e; '' 2/- per equity share for the financial year ended March 31,2023 subject to the approval of shareholders at the Annual General Meeting.

As per our report of even date attached

For price Waterhouse LLp For and on behalf of the Board of Directors of

Chartered Accountants Multibase India Limited

Firm''s Registration No : 301112E/E300264 CIN- L01122DD1991PLC002959

Ashish Taksali deepak dhanak H.N. Motiwalla

Partner (Managing Director) (Director)

Membership No : 99625 DIN No.03157491 DIN No.00029835

parmy Kamani pankaj Holani

Company Secretary Chief Financial Officer

Membership no. 27788

Place : Mumbai Place : Mumbai

Date : May 23, 2023 Date : May 23, 2023

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Mar 31, 2018

1 Deferred Tax

Under Previous GAAP deferred taxes are recognized for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognized using the balance sheet approach for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases.”

2 Excise Duty

Under Previous GAAP sale of goods was presented as net of excise duty. However, under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss as an expense. Thus sale of goods under Ind AS has increased with a corresponding increase in expense.

3 Provision for employee benefits expenses

Both under Previous GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurement gain and loss (actuarial gains and losses on defined benefit obligation and the plan assets) are recognized immediately in the balance sheet with a corresponding debit or credit

Actuarial gains and losses accounted through OCI

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under Previous GAAP these remeasurements were forming part of the profit or loss for the year. Accordingly, Rs. 150,552 (net off tax) has been reclassified from the statement of profit and loss to statement of comprehensive income in 2016-17. However, this adjustment has no impact on the total equity on the transition date as well as 31^st March 2017.

b) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. Dividend proposed by Board of Directors, if any is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note 4 Segment reporting

A. Factors used to identify the entity’s reportable segments, including the basis of organization

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 o realised f the Companies Act 2013, there are not reporatble segments applicable to the Compnay.

B. Geographic information

The geographic information an alyses 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.

All the non-current assets of Company are located within India.

C. Information about major customers

Revenues from three major customers represented approximately RS, 218,063,094 (31^st March 2017: RS, 6,84,42,476), RS, 85,526,661 (31^st March 2017: 48,062,143) and RS, 83,546,812 (31^st March 2017: RS, 53,146,834) of the Company''s total revenues.

Note 5Employee benefits

(A) Defined contribution plans:

The Company recognized RS, 1,418,754 for the year ended 31^st March 2018 (31^st March 2017: RS, 1,455,137) towards provident fund contribution in the Statement of Profit and Loss.

(B) Defined Benefit Plan:

The most recent actuarial valuation of the defined benefit obligation in relation to the gratuity scheme was carried out 31^st March 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation balance sheet date:

Note 33 Related party disclosures

a) List of related parties

Related parties where control exists:

Ultimate Holding Company

Dow Corning Corporation (Upto 31^st August 2017)**

Dow Dupont Inc. (Effective 1^st September 2017)

Holding Company Multibase S.A, France

Directors and Key Management Personnel (KMP)

Mr. Deepak Dhanak- Managing Director

Ms. Sunaina Goraksh- Company Secretary

Mr. VS Nagesh- Chief Financial Officer

Mr. Harish Narendra Motiwalla- Independent Director

Mr. Ashok Chhabra- Independent Director

Ms. Maithilee Kaizad Mistry- Non Executive Director

Ms. Suely Ono Mori- Non Executive Director

Mr. Vipulkumar Babu- Non Executive Director

Other related parties

Dow Corning (Zhangjiagang) Holding Company Limited

Dow Chemical International Private Limited

Dow Corning Limited-Barry

Dow Corning Korea Limited

Dow Corning Europe S.A.

Dow Corning Taiwan Inc.

Dow Corning India Private Limited Dow Corning India Private Limited Dow Corning India Private Limited DC New Zealand (Auckland) Limited Dow Corning Toray Company Limited Dow Corning Singapore Pte. Limited Dow Corning (Thailand) Limited Dow Europe GMBH Dow Silicones Corporation Hampshire Chemical Corporation Multibase, Inc.

H N Motiwalla & Co

** The name for Dow Corning Corporation has changed its name to Dow Silicones Corporation since 1^st February 2018.

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 31^stMarch 2017.

(ii) Cash and cash equivalents, trade receivables, other financial assets trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

Note 6 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.

Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior 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.

Financial assets other than trade receivables are not impaired and further, there are no amounts that are past due. Management believes that the amounts are collectible in full, based on historical payment behavior.

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.

Exposure to liquidity risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 establishes a single comprehensive standard for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue, Ind AS11 Construction Contracts when it becomes effective.

The core principles of Ind AS 115 is that an entity should recognize revenue to depict the transfer to promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specially, the standard introduces a 5-step approach to revenue recognition:

Step 1 : Identify the contract(s) with a customer

Step 2 : Identify the performance obligation in contract

Step 3 : Determine the transaction price

Step 4 : Allocate the transaction price to the performance obligations in the contract Step 5 : Recognize revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control'' of the goods or services underlying the particular performance obligation is transferred to the customer.

The Company is in the process of evaluating the impact of these standards on the financial statements. These amendments will come into force from 1 ^st April 2018.

Ind AS 21 - The effect of changes in Foreign Exchange rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.

* For the purpose of this clause, the term ‘Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.

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Mar 31, 2017

1. Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

2. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

3. The expected contributions for defined plans for the next financial year will in line with FY 2016-17 B Defined Contribution Plan Contribution to Defined Contribution Plan, recognized in Statement of Profit and Loss for the year is as under:

4. The Company has not taken/entered into any derivative instrument during the year and there is no derivative instrument outstanding as at the year end. The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as follows.

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Mar 31, 2016

1. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.NIL (Previous Year Rs.719,398).

2. ‘Employee Advances'' includes due from Managing Director (against expenses) Rs NIL (Previous Year Rs NIL). Maximum amount outstanding there against at any time during the year is Rs.33,100/- (Previous Year Rs.47,909/-)

3. Segment reporting

a) Business Segment

The Company has considered business segment as the primary segment for disclosure. The Company is primarily engaged in manufacturing and trading of Thermoplastic Compounds, which in the context of Accounting Standard 17 “Segment Reporting” is considered the only business segment.

b) Geographical Segment

The Company sells its products mainly within India where the conditions prevailing are uniform. Since the sales outside India are below the threshold limit, no separate geographical segment disclosure is considered necessary.

4. (i) Defined benefit plan being Gratuity (Unfunded)

As per Actuarial valuations as on 31^st March, 2016 and in accordance with the Accounting Standard 15 (Revised) ‘Employee Benefits'' specified under Section 133 of the Companies Act, 2013:

Notes:

(i) Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

(ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

5. Previous Year Comparatives

The previous year figures have been accordingly regrouped / re-classified to conform to the current year''s classification.

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Mar 31, 2015

1. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 719,398 (Previous Year Rs. 209,999).

2. Employee Advances' includes due from Managing Director (against expenses) Rs. NIL (Previous Year Rs. 47,909). Maximum amount outstanding there against at any time during the year is Rs. 47,909/- (Previous Year Rs. 50,375/-)

3. Segment reporting

The Company operates in a single business segment of "Thermoplastic Compounds". Hence, being a single segment company, no additional reporting requirements under Accounting Standard-17 issued by the Companies (Accounting Standards) Rules, 2006 "(as amended)" are attracted.

4. Related party disclosure

(i) As per Accounting Standard-18 on 'Related Party Disclosures', issued by the Companies (Accounting Standards) Rules,2006 "(as amended)"; the nature of relationship and nature of transactions with related parties are as below

Note:

01. Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

02. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

5. The Company has not taken/entered into any derivative instrument during the year and there is no derivative instrument outstanding as at the year end. The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as follows.

6. Previous Year Comparatives

The previous year figures have been accordingly regrouped / re-classified to conform to the current year's classification.

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Mar 31, 2014

Notes

(1) The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. If any, dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(2) Out of the above equity shares 9,464,994 shares i.e. 75% (Previous year 9,464,994 shares i.e. 75%) are held by M/s. Multibase S.A, France, the Holding Company (of which Dow Corning Corporation, USA is the ultimate Holding Company).

(3) Except for above, no other shareholder holds more than 5% of the equity shares of the Company.

Nature of operations

Multibase India Limited is engaged in manufacturing and selling of Polypropylene Compound, Thermoplastic Elastomer, Silicon Master Batch and Thermoplastic Master Batch.

1. Contingent liabilities against the Company not acknowledged as debt

Amount in Rupees

Claims against the Company not acknowledged as debt 2013-14 2012-13

* Towards C-forms pending collection 11,224,530 8,444,389

* The Company has made duty free imports of specific raw material under Advance 365,575 22,311,063 Licence scheme with a condition to fulfill the related export obligation. The export obligation remaining to be fulfilled in this regard as at year end is

* Income tax demand 4,520,453 4,520,453

Future cashflows in respect of the above matters are determinable only on receipts of judgement/decisions pending at various forums/authorities.

2. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 209,999/- (Previous Year Rs. 524,995/-).

3. Employee Advances'' includes due from Managing Director (against expenses) Rs. 47,909/- (Previous Year Rs. Nil). Maximum amount outstanding there against at any time during the year is Rs. 50,375/- (Previous Year Rs. 160,000/-)

4. Segment reporting

The Company operates in a single business segment of "Thermoplastic Compounds". Hence, being a single segment Company, no additional reporting requirements under Accounting Standard-17 issued by the Companies (Accounting Standards) Rules, 2006 "(as amended)" are attracted.

5. Defined benefit plan being Gratuity (Unfunded)

As per Actuarial valuations as on 31st March 2014 and in accordance with the Accounting Standard-15 (Revised) on ''Employee Benefits'' issued under the Companies (Accounting Standards) Rules 2006 "(as amended)".

6. Note:

01. Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

02. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

03. Basic & Diluted earnings per share

2013-14 2012-13

Profit after tax attributable to equity share holders (Rs) 50,788,712 44,897,522

Weighted average number of shares outstanding during the year (Nos.) 12,620,000 12,620,000

Earning per share (Basic/Diluted) (Rs) 4.02 3.56

Nominal value per share (Rs) 10 10

7. The Company has not taken/entered into any derivative instrument during the year and there is no derivative instrument outstanding as at the year end. The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as follows.

8. previous Year Comparatives The previous year figures have been accordingly regrouped / re-classified to conform to the current year''s classification.

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Mar 31, 2013

1. Nature of operations

Multibase India Limited is engaged in manufacturing and selling of Polypropylene Compound, Thermoplastic Elastomer, Silicon Master Batch and Thermoplastic Master Batch.

2. Contingent liabilities and claims against the Company not acknowledged as deb

Amount in Rupees 2012-13 2011-12

a) Contingent Liabilities

Letters of credit and bank guarantee - 11,088,879

Towards C-forms pending collection 8,444,389 6,970,685

The Company has made duty free imports of specific raw material 22,311,063 2,940,401

under Advance Licence scheme with a condition to fulfill the related export obligation. The export obligation remaining to be fulfilled in this regard as at year end is

b) Claims against the Company not acknowledged as debt

Income tax demand 4,520,453 4,520,453

Central sales tax demand - 2,759,520

3. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 524,995 (Previous YearRs. 918,300).

4. ''Employee Advances'' includes due from Managing Director (against expenses) Rs. Nil (Previous Year Rs. Nil). Maximum amount outstanding there against at any time during the year is Rs. 160,000/- (Previous Year Rs. 7000/-)

5. Segment reporting

The Company operates in a single business segment of "Thermoplastic Compounds". Hence, being a single segment Company, no additional reporting requirements under Accounting Standard-17 issued by the Companies (Accounting Standards) Rules, 2006 are attracted.

6. Related party disclosure

As per Accounting Standard-18 on ''Related Party Disclosures'', issued by the Companies (Accounting Standards) Rules, 2006; the nature of relationship and nature of transactions with related parties are as below:

7. The Company has not taken/entered into any derivative instrument during the year and there is no derivative instrument outstanding as at the year end. The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as follows.

8. Previous Year Comparatives

The previous year figures have been accordingly regrouped / re-classified to conform to the current year''s classification.

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Mar 31, 2012

Notes :-

02. The Cash Flow statement has been prepared under the indirect method as set out in Accounting Standard -3 ("AS-3") on Cash flow statement notified by the Companies (Accounting Standards) Rules, 2006.

03. Previous year's figures have been regrouped wherever necessary to correspond with the current year's presentation.

Note

(1) Out of the above equity shares 9,464,994 shares i.e. 75% (Previous year 9,464,994 shares i.e. 75%) are held by M/s. Multibase S.A, France, the Holding Company (of which Dow Corning Corporation, USA is the ultimate Holding Company)

(2) Except for above, no other shareholder holds more than 5% of the equity shares of the Company.

Note

The amount due to Micro, small and medium enterprises is determined on the basis of intimation received by the Company from the suppliers.

Note

Rate of interest on external commercial borrowings is LIBOR 2%

Note

(1) Raw materials include goods in transit Rs. 4,194,783 (Previous year: Rs. 2,393,422).

(2) Finished goods include goods in transit (traded) Rs. 2,063,818 (Previous year: Nil) and inventory of traded goods Rs. 3,638,400 (Previous year: Rs. 2,870,333)

1. Nature of operations

Multibase India Limited is engaged in manufacturing and selling of Polypropylene Compound, Thermoplastic Elastomer, Silicon Master Batch and Thermoplastic Master Batch.

2. Contingent liabilities and claims against the Company not acknowledged as debt

Amount in Rupees

2011-12 2010-11

a) Contingent Liabilities

- Letters of credit and bank guarantee 11,088,879 1,347,100

- Towards C-forms pending collection 6,970,685 5,736,105

- The Company has made duty free imports 2,940,401 - of specific raw material under Advance Licence scheme with a condition to fulfll the related export obligation. The export obligation remaining to be fulflled in this regard as at year end is

3. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 918,300 (Previous Year Rs. 1,082,127).

4. 'Employee Advances' includes due from Managing Director (against expenses) Rs. Nil (Previous Year Rs. Nil). Maximum amount outstanding there against at any time during the year is Rs. 7,000/- (Previous Year Rs. 14,668/-)

5. Segment reporting

The Company operates in a single business segment of "Thermoplastic Compounds". Hence, being a single segment Company, no additional reporting requirements under Accounting Standard-17 issued by the Companies (Accounting Standards) Rules, 2006 are attracted.

* Does not include provision for Leave Encashment/Gratuity, contribution to Provident fund.

6. Defend benefit plan being Gratuity (Unfunded)

As per Actuarial valuations as on 31st March 2012 and in accordance with the Accounting Standard-15 (Revised) on 'Employee Benefits' issued under the Companies (Accounting Standards) Rules 2006.

Note:

01. Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

02. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

7. Previous Year Comparatives

The Company prepares and presents its financial statements as per Schedule VI to the Companies Act, 1956, as applicable to it from time to time. In view of revision to the Schedule VI as per a notification issued during the year by the Central Government, the financial statements for the financial year ended 31st March, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped / re-classified to conform to the current year's classification.

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Mar 31, 2010

1. Nature of Operations

Multibase India Limited is engaged in manufacturing and selling of Polypropylene Compound, Thermoplastic Elastomer, Silicon Master Batch and Thermoplastic Master Batch.

2. Contingent Liabilities not provided for

Amount in Rupees

2009-10 2008-09

Letters of Credit and Bank Guarantee 6,527,501 2,997,000

Income Tax & FBT Demand 3,252,577 2,148,697

C- Forms Pending Collection 6,157,556 3,568,749

3. Advance Recoverable in cash or in kind or for value to be received includes due from Managing Director (against expenses) Rs 5.47 lacs (Previous Year Rs 1.28 lacs). Maximum amount outstanding thereagainst at any time during the year is Rs 5.47 lacs (Previous Year Rs 1.28 lacs)

4. Segment Reporting :-

The Company operates in a single business segment of "Thermoplastic Compounds". Hence, being a single segment company, no additional reporting requirements under Accounting Standard-17 issued by the Companies (Accounting Standards) Rules, 2006 are attracted.

5. Gratuity and other post-employment benefit plans:

As per Actuarial valuations as on 31st March 2010 and in accordance with the Accounting Standard-15 (Revised) on Employee Benefits issued under the Companies (Accounting Standards) Rules 2006.

6. Based on information available with the Company, no supplier of the Company is registered under the Micro, Small and Medium enterprises Development Act,2006.

7. Previous Year comparatives

Previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.