Lead Reclaim and Rubber Products Ltd. कंपली की लेखा नीति

Mar 31, 2025

1 COMPANY INFORMATION

Lead Reclaim and Rubber Products Limited is a Limited Company listed in SME Platform domiciled in India & Incorporated under
the provision of The Companies Act, 2013.

During the year Company is engaged in Trading and manufacturing of Reclaim Rubber Products.

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in
India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the
1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act")in terms of
General Circular 15/ 2013 dated 13 September 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956
Act / 2013 Act, as applicable. All assets & liabilities have been classified as current or non-current as per the company''s operating
cycle and other criteria set out in the Schedule III to the 2013 Act (Earlier Revised Schedule IV to the 1956 Act). Based on the
nature of business activity and the time between the acquisition of assets for processing and their realization in cash & cash
equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current or non-current
classification of Assets & liabilities.

b Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be
made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial
statement and the reported amount of revenues and expenses during the reporting period. Difference between the actual results
and estimates are recognized in the period in which the results are known/ materialized.

c Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts
are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are
consistent with the generally accepted accounting principles.

d Inventories

Raw materials, components, store and spares are valued at lower of cost and net realizable value. However, materials and other
items held for use in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on
a First in First Out basis.

Work-in-progress and finished products are valued at lower of cost or net realizable value. Cost includes direct materials and
labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods is determined
on First in First Out basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and
estimated cost necessary to make sale.

Trading goods are valued at lower of cost or net realisable value.

e Contingencies and Events Occurring After the Balance Sheet Date

Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for an
adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are required to
assets and liabilities for events which occur after balance sheet date which offer added information substantially affecting the
determination of the amounts which relates to the conditions that existed at balance sheet date.

f Depreciation and amortization

Depreciation on property, plant and equipment has been provided under Written down value method over the useful life of
assets estimated by the management which is in line with the terms prescribed in Schedule II to The Companies Act, 2013.
Depreciation for assets purchased/sold during the period is proportionately charged. Depreciation method, useful life & residual
value are reviewed periodically.

g Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are
disclosed net of GST, trade discounts and returns, as applicable.

Income from services

Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding
consideration and its ultimate collection.

Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

h Property, Plant & Equipments

Tangible Assets

Property, Plant & Equipments are stated at cost less accumulated depreciation. Direct costs are capitalized until Property, Plant &
Equipment are ready for use. Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Input tax Credit of GST or Grants on capital goods are accounted for by reducing the cost of Capital
Goods.

Subsequent expenditures relating to property, plant and equipment are capitalised only when it is probable that future economic
benefits associated with them will flow to the Company and the cost of the expenditure can be measured reliably. Repairs and
Maintenance costs are recognised in the Statement of Profit and Loss when they are incurred.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal
or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is
recognized in Statement of Profit and Loss for the relevant financial year.

Capital Work in Progress :

Capital Work-in-progress comprise the cost of fixed assets that are not yet ready for their intended use at the reporting date,
i Investment

Investment which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as Non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. Provision for diminution, if any is made to recognize a decline, other than
temporary, in the value of investments.

Profit or Loss on sale of investments is recorded at the time of transfer of title from the company and is determined as the
amount of difference between the sale proceeds and the carrying value of investment as on that date.

j Borrowing Cost

In accordance with Accounting Standard - 16 " Borrowing Cost" issued by The Institute of Chartered Accountants of India,
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of
such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.

k Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are
subject to an insignificant risk of change in value and having original maturities of three months or less from the date of
purchase, to be cash equivalents.

I Earning Per Share

Basic earnings / (loss) per share are calculated by dividing the net profit or loss for the year attributable to shareholders by the
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential shares.

m Employee Benefits

(i) Short Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service are recognised in respect of employees'' services up to
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as short term employee benefit obligations in the balance sheet
(II) Post Retirement Obligations

Post Retirement obligations such as gratuity and leave encashment payable after the retirement of employee are not provided,
However company has certain rule for payment of leave encashment benefits and post retirement gratuity.

n Impairment of Assets

An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured
as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows. An
impairment loss is charged off to profit and loss account as and when asset is identified for impairment. The impairment loss
recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. An asset is
treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is measured as the
higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

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Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES

a Basis of Preparation

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP) to comply with accounting standards specified under section 133 of the companies Act, 2013 ("the 2013 Act") read with Rule 7 of the companies (Accounts) Rules, 2014.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable fixed assets and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialize.

c Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

c Property, Plant and Equipment

Property, Plant & Equipments are stated at cost less accumulated depreciation. Direct costs are capitalized until Property, Plant & Equipment are ready for use. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Input tax Credit of GST or Grants on capital goods are accounted for by reducing the cost of Capital Goods.

Subsequent expenditures relating to property, plant and equipment are capitalised only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the expenditure can be measured reliably. Repairs and Maintenance costs are recognised in the Statement of Profit and Loss when they are incurred.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

d Depreciation f amortisation

In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortisation is charged on a written down method basis so as to write-off the cost of the assets over the useful lives.

e Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

f Investments

Investment which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as Non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Provision for diminution, if any is made to recognize a decline, other than temporary, in the value of investments

g Revenue recognition

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of GST, trade discounts and returns, as applicable.

Income from services

Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection.

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

h Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

I Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non- integral foreign operation are accumulated in a foreign currency translation reserve.

j Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.