Lead Reclaim and Rubber Products Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

o Provisions, Contingent liabilities and Contingent assets

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet
date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are
not recognized but are disclosed in the Notes. Provision in respect of loss contingencies relating to claims, litigation, assessment,
fines, penalties, etc. are recognized when it is probable that a liability has been incurred and the amount can be estimated
reliably. Contingent Assets are neither recognized nor disclosed in the financials statements.

p Foreign currency transactions

Initial Recognition - Foreign currency transactions are recorded in reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of transaction.

Measurement of foreign currency monetary items at the Balance Sheet date - Foreign Currency monetary items are restated
using the exchange rate prevailing at the reporting date. Non-monetary items which are measured in terms of historical cost
denominated in foreign currency are reported using the exchange rate at the date of transaction. Non- monetary items which are
measured at fair value or other similar valuation denominated in foreign currency are translated using the exchange rate at the
date when such value was determined.

Treatment of Exchange Differences - The Company accounts for exchange differences arising on translation / settlement of
foreign currency monetary items are recognised as income or expense in the period in which they arise. The Foreign Exchange
difference in closing balance of ledgers between the foreign currency and the domestic currency is charged to revenue A/c.

q Accounting for Taxes

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable
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.

r Segment accounting

Segments are identified in line with AS-17 "segment Reporting", taking into consideration the internal organisation and
management structure as well as the differential risk and returns of the segment. Based on the Company''s business
model,Manufacturing and trading of Reclaim Rubber have been considered as the only reportable business and geographical
segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting
the financial statements of the Company as a whole.

s Government Grants

Government Grant is recognized when there is reasonable assurance that the conditions attached to them will be complied with.
Government Grant received against the cost of fixed asset is credited to the gross value of the respective fixed asset in arriving at
its book value. The grant is thus recognized in the profit and loss statement over the useful life of the respective depreciable fixed
asset by way of a reduced depreciation charge.

t Current and Non Current bifurcation

All the Loans & Advances that are receivable / repayable within the company''s normal operating cycle of 12 months have been
considered as Current.

Similarly, certain Loans & Advances which are not repayable within the operating cycle of 12 months have been considered to be
Non-Current.

u Other accounting policies

These have been consistently followed as per normal accounting practices.

As per Notification No. CG-DL-E-22072022-237454 dated 21st July, 2022 - Companies being eligible producers are liable to Waste Tyre
Recycling Target pursuant to which the producers can purchase extended producer responsibility (EPR) certificates, it shall be automatically
adjusted against their liability.

Our company engaged in recycling of reclaimed rubber from waste tyre are eligible to sell such credit points accumulated vide its registration
on the portal eprtyrecpcb.in during the course of its operations. Pursuant to the said provisions the company has recorded Income of Rs.
211.04 Lacs (Previous year Rs. 94.27 Lacs) from sale of 9015.23 (MT) (Previous year 5095.517 ) (MT) accumulated EPR credits during the
period FY 24-25

Reasons for Variances

1) Debt-Equity Ratio = Significant Increase in Equity

2) Debt-Service Coverage Ratio = Increase in Earnings

3) Return on Equity Ratio = Increase in Earnings

4) Inventory Turnover Ratio = Significant Increase in Turnover

5) Trade Payable Turnover Ratio = Significant Increase in Purchases

6) Net Capital Turnover Ratio = Significant Increase in Turnover

7) Net Profit Ratio = Increase in Net Profit

8) Return on Capital Employed = Incease in EBIT

9) Return on Investment = Irrelevant since small investment in Fixed Deposits
35 Other Statutory Disclosures as per the Companies Act, 2013

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall 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 provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall 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 provide any guarantee, security or the
like to or on behalf of the Ultimate Beneficiaries.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961.

The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section
2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

The Company has not revalued any of its Property, Plant and Equipment (including Right of Use Assets) during the year.

The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956 for the period ended / as at March 31, 2024.

The Company has borrowings from Banks on the basis of security of current assets. However Company is not required to submit any
Quarterly returns \ statements of current assets.

Provision of Section 135 of the Companies Act, 2013 in respect of Corporate Social Expenditure is not applicable to the Company.

36 Regrouping

Previous year figures has been re-classified, re-arranged, re-grouped whenever necessary to make financial year comparable with
current year figures.

37 Foot note 3

Balances of Current assets, Loans & advances, Current Liabilities, Margin Money etc. are subject to confirmation and reconciliation, if
any.

38 Foot note 4

In the opinion of Board of Directors; Current Assets, Loans & Advances (Including Capital Advances) have a value on realization in the
ordinary course of business at least equal to the amount at which they are stated. Adequate Provisions have been made in the
accounts for all the known liabilities.

39 Foot note 5

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the financial statements
to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of
30th May, 2025 there were no subsequent events to be recognized or reported that are not already disclosed.

40 Foot note 6

The accounting system used by the company did not maintain au audit trail during the year. Management is currently addressing this
issue to ensure future compliance with financial reporting standards.

41 Foot note 7

All the figures shown nearest to lakhs rupees.

As per our report of even date

For D K N & ASSOCIATES For and on behalf of the Board of

Chartered Accountants LEAD RECLAIM AND RUBBER PRODUCTS LIMITED

Firm''s Registration No. 120386W

CA DHIRAJ AGRAWAL KALPESHBHAI PATEL JAYESH PATEL

PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTOR

Membership No. 107286 DIN 06229748 DIN 05007490

UDIN: 25107286BMLHYA6565
Place: BHARUCH

Date: 30 May 2025 KRITIKA GADIYA RAJESHBHAISODHAPARMAR

COMPANY SECRETARY CFO

Place: KATHLAL
Date: 30 May 2025

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Mar 31, 2024

k Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

I 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.

m Borrowing cost

Borrowing costs that are attibutable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessary takes substantial period of time to get ready for ontended use. All other borrowing cots are charged to revenue

n Earning per Share

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

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

o Contingencies and Event Occuring after the Date of 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.

p Segment Reporting Policies

Segments are identified in line with AS-17 "segment Reporting", taking into consideration the internal organisation and management structure as well as the differential risk and returns of the segment. Based on the Company''s business model, Manufacturing of Reclaim Rubber have been considered as the only reportable business and geographical segment.

Segment Policies:

The Company prepares its segment information in confirmity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

q Retirement 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 compnay has certain rule for payment of leave encashment benefits and post retirement gratuity.

See accompanying notes to the financial statements As per our report of even date

For D K N & ASSOCIATES For and on behalf of the Board

Chartered Accountants

Firm''s Registration No. 120386W

CA DHIRAJ AGRAWAL KALPESHBHAI PATEL JAYESH PATEL

PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTROR

Membership No. 107286 DIN 06229748 DIN 05007490

UDIN: 24107286BKDFRE3924

Place: BHARUCH Place: AHMEDABAD

Date: 30 May 2024 Date: 30 May 2024

As per Notification No. CG-DL-E-22072022-237454 dated 21st July, 2022 • Companies being eligible producers are liable to Waste Tyre Recycling Target pursuant to which the producers can purchase extended producer responsibility (EPR) certificates, it shall be automatically adjusted against their liability.

Our company engaged in recycling of reclaimed rubber from waste tyre are eligible to sell such credit points accumulated vide its registration on the portal eprtyrecpcb.in during the course of its operations. Pursuant to the said provisions the company has recorded Income of Rs. 94.27 Lacs from sale of 5095.517 (MT) accumulated EPR credits during the period FY 22-23.

Decrease in Current Ratio due to Increase in Current Liability.

Increase in Debt-Equity Ratio due to Increase in Debts

Increase in Debt Service Coverage Ratio due to decrease in debt services.

Decrease in Return on Equity Ratio due to Decreased in Profit after Tax.

Decrease in Trade Receivable turnover ratio due to significate increase in Average trade receivable.

Decrease in Trade Payable turnover ratio due to significate increase in Average trade payables.

Increase in Net capital turnover ratio due to increase on total turnover

Decrease in Net Profit Ratio due to decrease in Net Profit and Increase in Total turnover.

34 Regrouping

Previous year figures has been re-classified, re-arranged, re grouped whenever necessary to make financial year comparable with current year figures.

35 Foot note 3

In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated. The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for. All other contractual liabilities connected with business operations of the Company have been appropriately provided for.

The company does not expect any statutory liabilities other than those provided in the books of account.

The company has not revalued its Property, Plant and Equipment during the year.

36 Foot note 4

The company has not entered any transactions with struck off companies under section 248 of the companies Act, 2013 or section 560 of companies Act, 1956.

The company has complied with the requirement of registration/satisfaction of charge with Registrar of Companies.

There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of companies Act, 2013.

37 Foot note 5

There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

The company has not been declared as a wilful defaulter by any bank or financial institution or other lender.

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

38 Foot note 6

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

The Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

The company has made provision as required under the applicable law or Accounting Standard, for material foreseeable losses if any, on long term contract including derivative contract.

39 Foot note 7

The accounting system used by the company did not maintain au audit trail durign the year. Management is currently adressing this issue to ensure future compliance with financial reporting standards.

All the figures shown nearest to lakhs rupees.

See accompanying notes to the financial statements As per our report of even date

For D K N & ASSOCIATES For and on behalf of the Board

Chartered Accountants

Firm''s Registration No. 120386W

CA DHIRAJ AGRAWAL KALPESHBHAI PATEL JAYESH PATEL

PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTROR

Membership No. 107286 DIN 06229748 DIN 05007490

UDIN: 24107286BKDFRE3924

Place: BHARUCH Place: AHMEDABAD

Date: 30 May 2024 Date: 30 May 2024