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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