Mar 31, 2015
1. COMPANY OVERVIEW :
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
Trading Activity Trading in Metal Scrap, Coals, Aluminium Foil & Other
Industrial Inouts
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
b) Other related parties where there have been transactions:
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.
Mar 31, 2014
A) During the year, the company was engaged ship breaking activities
and in trading in metal scrap, coals, aluminium foil & other industrial
inouts. However, as and when any surplus fund 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.
b) In the opinion of the Management, the realisable value of the fixed
assets of the com- pany are much higher than the carrying cost and
therefore, no provision for impair- ment is required to be made.
c) 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 Develop- ment Act, 2006 and therefore the amount due
to such suppliers has not been identi- fied.
d) The major components of the Deferred Tax Assets/Liabilities, based
on the tax effect of the timing differences, as at 31st March 2014, are
as under.
e) The company has taken lease right of the ship Breaking plot No. 45
Alang ship break- ing yard. The consideration paid to GMB and party
from which such plot has been taken over as treated as deferred revenue
expenses and written off over the balance lease period.
f) Income Tax assessment has been completed upto the year assessment
year 2011-12. The Management has an opinion that no additional
liability will arise in the case of pending assessment.
g) Sales tax assessment has been completed upto the year 2007-08. The
Company does not anticipate any liability on account of the pending
sales tax assessment .
h) In the opinion of the Board of Directors, Current Assets, Loans &
Advances have a value of realisation at least equal to the amount at
which they are stated in the Balance Sheet. Adequate provision have
been made in the accounts for all the known liabilites.
i) The Balance of Sundry Creditors, Sundry Debtors, Loans & Advances
are unsecured, considered goods and subject to confirmation.
j) Previous years figures have been regrouped/rearranged wherever
necessary so as to make them comparable with current years figures.
2 ADDITIONAL INFORMATION AS REQUIRED UNDER PART-IV OF SCHEDULE VI TO
THE COMPANIES ACT, 1956.
Note: ine issuea ana paia-up capital inciuaes :
1 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 accounts of Rs.82,11,344/-.
2 4,99,078 equity shares 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.
B. Reconcilaition of the number of outstanding shares as at the
beginning and at the end of the reporting period.
C. Terms/rights attached to equity shares
The Company has one class of equity shares having par value of '' 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 Directors is subject to the approval of the
share holders in the ensuing Annual General Meeting.
During the year ended 31 March 2014, the amount of per share dividend
recognized as distributions to equity share holders was Rs. Nil (31
March 2013: Rs. 3.50).
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 decla- rations received from share
holders regarding beneficial interest, the above shareholding repre-
sents both legal and beneficial ownership of shares.
Cash credit from Indian Overseas Bank is primarily secured against
Stocks, Receivables and other current assets of the company and
colleterally secured by Land Plots and Residential Proprties of
Director''s Relatives. The same is also secured by personal guarantee of
two direc- tors and their two relatives. The cash credit is repayable
on demand and carries interest @ 14 to 14.75% p.a.
Clean Overdraft from Indian Overseas Bank is colleterally secured by
Land Plots and Residential Proprties of Director''s 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 @
16% p.a.
There is no stipulation as to repayment of loans & advances from
relatives hence question of overdue amount as at March 31, 2014 does
not arises.
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.
2. 29 SEGMENT INFORMATION
The business of the company is divided into Two segment: 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
Trading Activity Trading in Metal Scrap, Coals, Aluminium Foil & Other
Industrial
Inouts
Ship Breaking Activity Dismentling / 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.
2. 30 Related Party Transactions :
a) Key Management personnel
i) Sweety R Reniwal
b) Other related parties where there have been transactions:
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.
2. 31 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 has disputed and
the matter is pending before of the CEGAT. Pending decision on the
appeal of the company, as directed by the CEGAT, paid an amount of
Rs.15 Lacs. The company is hopeful that the matter will be decided in
favour of the company,hence no provision for the demand has been made
in the accounts and in case the decision is against the company, the
same will be provided/accounted for in the year in which such a
decision comes.
(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. However, the company has disputed the demand and the matter is
pending with appellate authorities. 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.
2.2 The previous year figures have been reclassified /regrouped
wherever considered necessary to confirm to this year''s
classification/grouping.
Mar 31, 2013
CORPORATE INFORMATION :
Inducto Steels Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
snares is listed on BSE (Bombay Stock Exchange) in India.
During the year, the Company was engaged in the ship breaking business
and trading activities in ferrous and non ferrous metals, coal etc.
However, as and when any surplus fund 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.
1.1 BASIS OF PRESENTATION :
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards noti-
fied under the Companies (Accounting Standards) Rules, 2006 (as
amended) and the rel- evant provisions of the Companies Act, 1956. The
financial statements have been pre- pared on an accrual basis and under
the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
a) During the year, the company was engaged ship breaking activities
and in trading in metal scrap, coals, aluminium foil & other industrial
inouts. However, as and when any surplus fund 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.
b) In the opinion of the Management, the realisable value of the fixed
assets of the company are much higher than the carrying cost and
therefore, no provision for impairment is required to be made.
c) 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.
d) The major components of the Deferred Tax Assets/Liabilities, based
on the tax effect of the timing differences, as at 31st March 2013, are
as under.
e) The company has taken lease right of the ship Breaking plot No.
45Alang ship breaking yard. The consideration paid to GMB and party for
which such plot has been taken over as treated as deferred revenue
expenses and written off over the balance lease period.
f) Income Tax assessment has been completed upto the year assessment
year 2010- 11. The Management has an opinion that no additional
liability will arise in the case of pending assessment.
g) Sales tax assessment has been completed upto the year 2007-08. The
Company does not anticipate any liability on account of the pending
sales tax assessment.
h) In the opinion of the Board of Directors, Current Assets, Loans &
Advances have a value of realisation at least equal to the amount at
which they are stated in the Balance Sheet. Adequate provision have
been made in the accounts for all the known liabilites.
i) The Balance of Sundry Creditors, Sundry Debtors, Loans & Advances
are unsecured, considered goods and subject to confirmation.
j) Previous years figures have been regrouped/rearranged wherever
necessary so as to make them comparable with current years figures.
1.2 SEGMENT INFORMATION
The business of the company is divided into Two segment: Trading and
Ship Recycling activities and separate set of books of accounts are
maintained. The principal activities of these segments are as under.
1.3 Related Party Transactions :
a) Key Management personnel i) Sweety R Reniwal
b) Other related parties where there have been transactions:
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.
1.4 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 has disputed and
the matter is pending before of the CEGAT Pending decision on the
appeal of the company, as directed by the CEGAT paid an amount of Rs.10
Lacs. The company is hopeful that the matter will be decided in favour
of the companyhence no provision for the demand has been made in the
accounts and in case the decision is against the company, the same will
be provided/accounted for in the year in which such a decision comes.
(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 F Y 2005-06, vide their order dated November 30,2011.
However, the company has disputed the demand and the matter is pending
with appellate authorities. 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.
1.5 The previous year figures have been reclassified /regrouped
wherever considered necessary to confirm to this year''s
classification/grouping.
Mar 31, 2012
1. CORPORATE INFORMATION :
Inducto Steels Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
shares is listed on BSE (Bombay Stock Exchange) in India. The company
is engaged in ship breaking/ ship recycling business.
During the year, the Company was engaged in the ship breaking business
only and did not do any trading activity. However, as and when any
surplus fund 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.
1.1 BASIS OF PRESENTATION :
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended) and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
a) During the year, the Company was engaged in the ship breaking
business and trading activity in ships and iron and steel. However, as
and when any surplus fund 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.
b) In the opinion of the Management, the realisable value of the fixed
assets of the company are much higher than the carrying cost and
therefore, no provision for impairment is required to be made.
c) 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.
e) The company has taken lease right of the ship Breaking plot No. 45
Alang ship breaking yard. The consideration paid to GMB and party for
which such plot has been taken over has treated as deferred revenue
expenses and written off over the balance lease period.
f) Income Tax assessment has been completed upto the year A. Y.
2009-10. The Management has an opinion that no Additional Liability
will arise in the case of Pending Assessment.
g) Sales tax assessment has been completed upto the year 2005-06. The
Company does not anticipate any liability on account of the pending
sales tax assessment.
h) In the opinion of the Board of Directors, Current Assets, Loans &
Advances have a value of realisation at least equal to the amount at
which they are stated in the Balance Sheet. Adequate provision have
been made in the accounts for all the known liabilities.
i) The Balance of Sundry Creditors, Sundry Debtors, Loans & Advances
are unsecured, considered goods and subject to confirmation.
j) Previous years figures have been regrouped/rearranged wherever
necessary so as to make them comparable with current years figures.
2.1 SHARE CAPITAL A. SHARE CAPITAL
Note: The issued and paid-up capital include:
1. 2417856 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 accounts of Rs. 82,11,344.
2. 499078 equity shares 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.
C. 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 dividends as declared from time to time.
The company declares and pays dividends 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 2012, the amount of per share dividend
recognized as distributions to equity share holders was Rs. 3 (31st
March 2011: Rs. 2.50).
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
proportion to the number of equity shares held by the share holders.
2.2 RELATED PARTY TRANSACTIONS
a) Key Management personnel
i) Sweety Reniwal
b) Other related parties where there have been transactions:
Enterprises commonly controlled or influenced 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
2.3 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 has disputed and
the matter is pending before of the CEGAT. Pending decision on the
appeal of the company, as directed by the CEGAT, paid an amount of Rs.
10 Lacs. The company is hopeful that the matter will be decided in
favour of the company, hence no provision for the demand has been made
in the accounts and in case the decision is against the company, the
same will be provided/accounted for in the year in which such a
decision comes.
(B) During the year , 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 F Y 2005-06, vide their order dated
November 30,2011. However, the company has disputed the demand and the
matter is pending with appellate authorities. 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.
2.4 The financial statements for the year ended 31st March, 2011 had
been prepared as per the then applicable, pre-revised Schedule VI to
the Companies Act, 1956. Consequent to the notification under the
Companies Act, 1956, the financial statements for the year ended 31st
March, 2012 are prepared under revised Schedule VI. Accordingly, the
previous year figures have also been reclassified to conform to this
year's classification.
Mar 31, 2010
A) During the year,the Company was engaged in the ship breaking
business only and did not do any trading activity. However, as and when
any surplus fund 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.
b) In the opinion of the Management, the realisable value of the fixed
assets of the company are much higher than the carrying cost and
therefore, no provision for impairment is required to be made.
c) Deferred tax has been accounted in accordance with the requirement
of accounting standard on "Taxes on Income" (AS-22) taking into account
the present earning of the company, the anticipated earning etc and are
subject to adjustment on year to year. The deferred tax assets on
carry forward long term capital loss has not been considered, due to
uncertinity in its realisaiton.
d) There are no Micro,small and Medium Enterprised , to whom the
Company owes dues, which are outstanding for more than 45 days as at
March 31, 2010. This information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the company.
2 Contingent Liabilities not provided for
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 has disputed and the
matter is pending before of the CEGAT. Pending decision on the appeal
of the company, as directed by the CEGAT, paid an amount of Rs.15 Lacs.
The company is hopeful that the matter will be decided in favour of the
company,hence no provision for the demand has been made in the accounts
and in case the decision is against the company, the same will be
provided / accounted for in the year in which such a decision comes.
b) Income Tax assessment has been completed upto the year assessment
year 2007-08 The Management has been advised that no additional
liability will arise in the case of pending assessment.
c) Sales tax assessment has been completed upto the year 2005-06 The
Company does not anticipate any liability on account of the pending
sales tax assessment
3 Previous year figures have been regrouped/rearranged wherever
necessary so as to make them comparable current year figures. Figures
of previous year has been shown in the brackets wherever required.