Inducto Steels Limited is a Public Company domiciled in India and incorporated under the provisions of the Companies Act,1956. The company has its primary listing on BSE LIMITED in India. '

During the year, the Company was engaged in the ship breaking business and trading activities in metal scrap, coals, aluminium foil & other inouts. However, as and when any surplus funds are available, the same is given on interest to other parties and also invested in the shares and securities to earn short term and long term capital gains.

2. 24,17,856 Equity Shares alloted as fully paid up bonus shares in the year 1994-95 by capitalisation of revaluation reserve of Rs.1,38,65,528/- capital subsidy of Rs.21,01,687/- and surplus in Profit and Loss account of Rs.82,11,344/-.

3. 4,99,078 Equity Sshares allotted to the shareholders of Inducto Technocastings Private Limited and Hariyana Industrial Gases Private Limited, which were merged with the Company w.e.f. 01.04.2005.

4. Terms/rights attached to equity shares

The Company has one class of Equity Shares having par value of Rs. 10/- each. Each shareholder of the equity shares is entitled to one vote per share entitled to receive dividend as declared from time to time. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity share holders was Rs. Nil (31st March 2014: Nil).

In the event of liquidation of the Company, the holders of the Equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The ' distribution Will be in proporation to the number of equity shares held by the share holders.

As per records of the Company, including its register of shareholders/members and other declarations received from share holders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Cash Credit facilities with Indian Overseas Bank is secured by way of hypothecation of stocks & book debts of the Company as primary security and equitable mortgage of immovable company property of the & associated concern as collateral security

Clean Overdraft - 8742 with Indian Overseas Bank is collaterally secured by Land Plots and Residential Properties of Directors' relatives. The same is also secured by personal guarantee of two directors and their two relatives. The overdraft is repayable on demand and carries interest @ 14.25% p.a.

Note: Trade payables are recognised at their original invoiced amounts which represent their fair value on initial recognition. The trade payables are considered to be of short duration and are - not discounted and the carrying values are assumed to approximate their fair values.

The company has no information as to whether any of its suppliers constitute micro, small and medium enterprises as per Micro, Small and Medium Enterprises Development Act, 2006 , and therefore the amount due to such suppliers has not been identified. .

5. SEGMENT INFORMATION

The business of the Company is divided into two segments: Trading and Ship Recycling activities and separate set of books of accounts are maintained. The principal activities of these segments are as under.

Segment            Principal Activities

Ship Breaking Activity Dismantling / breaking of old and used ships

Segment Revenue, Segment Expenses and Segment Result include inter segment revenues / expenses between business segments. Those transfer are eliminated in total revenue/expense/ results.

6. RELATED PARTY TRANSACTIONS

a) Key Management personnel .

i)    Rajeev Reniwal               Managing Director

ii)   Rakesh Reniwal               CFO

iii)  Sweety R Reniwal             Non - Executive Director

Enterprises commonly controlled or influnced by major Shareholder/Directors/ Relative of Directors of the Company:

i) Hariyana Ship Breakers Limited

ii) Hariyana Ship Demolition Private Limited

iii) Hariyana Air Product

iv) Hariyana International Pvt Ltd

v) Shree Bata ii Associates

7. CONTINGENT LIABILITIES

CONTINGENT LIABILITIES & COMMITMENTS (TO EXTENT NOT PROVIDED FOR)

CONTINGENT LIABILITIES

(A) The Company was required to pay excise duty based on the capacity of the furnace during the year 1997-98 and the Company was paying the duty as per the capacity determined by the department based on the documents available with the Company. However subsequently the department has revised the capacity of the furnace and raised a demand of Rs.45,98,354/- on the company, which the company had disputed and the matter was pending before of the CEGAT. The Tribunal in its Judgmenet in July 2015, has given its verdict in favour of the Company. The company, as directed by the CEGAT, had paid an amount of Rs.10 Lacs. No provision for the demand has been madein the accounts and in case any future liability arises on this account, the same will be provided/ accounted for In the year in which such liability is raised.

(B) The Jt. Commissioner of Central Excise & Service Tax, Bhavnagar has raised a demand of Service Tax amounting to Rs. 17,63,750/-, penalty of an equal amount and interest applicable thereon in the case of matter pertaining to FY : 2005-06, vide their order dated November 30, 2011. The company has disputed the demand at the forum of appellate authorities and succeeded, and the matter is pending with appellate authorities. However, the Department of Service Tax have now taken the matter to Tribunal and the matter is pending. The company is hopeful that the matter will be decided in favour of the company, hence no provision for demand has been made in the books of accounts for the year and in case the final decision goes against the company, the same will be provided/accounted in the year in which matter is finalised by the competent authorities.

8. The previous year figures have been reclassified /regrouped wherever considered necessary to confirm to this year's classification/grouping.