f) Provisions & Contingent Liabilities

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current
pre- tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Disclosure of contingent liability is made when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of
resources embodying economic benefits will be required to settle or a reliable estimate of
amount cannot be made.

g) Inventories

Inventories of Raw Materials (Ships) are stated at Cost. Cost comprises all cost of purchase, cost
of conversion and other cost incurred in bringing the inventories to their present location and
condition.

Costs are determined on FIFO basis.

In ship recycling units, the weight of the ship purchased is accounted in terms of LDT/MT
of the ship at the time of its construction. Ascertaining of weight of ship at the time of purchase
is not possible due to its nature and size. There is loss of weight on account of corrosion and
other factors during the usage of the ship and its voyage for long period of the years.
Inventory at the close of the year is ascertained by reducing the weight of the scrap sold
together with the estimated wastage of the material.

Consumable stores and spares are written off at the time of purchase itself.

h) Employee Benefit Expense

• Defined contribution plans

Contributions under defined contribution plans are recognized as expense for the period in
which the employee has rendered service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

• Defined benefit plans

For defined benefit retirement schemes, the cost of providing benefits is determined using the
Projected Unit Credit Method, with actuarial valuation being carried out at each year-end
balance sheet date. Remeasurement gains and losses of the net defined benefit liability/(asset)
are recognized immediately in other comprehensive income. The service cost and net interest
on the net defined benefit liability/ (asset) are recognized as an expense within employee
costs.

Past service cost is recognized as an expense when the plan amendment or curtailment occurs
or when any related restructuring costs or termination benefits are recognized, whichever is
earlier.

The retirement benefit obligations recognized in the balance sheet represents the present value
of the defined benefit obligations as reduced by the fair value of plan assets.

Compensated absences which are not expected to occur within twelve months after the end of
the period in which the employee renders the related service are recognized based on actuarial
valuation at the present value of the obligation as on the reporting date.

i) Taxes

The tax expenses for the period comprises of current tax and deferred income tax.

Current Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date.

Deferred Tax

Deferred tax is the tax expected to be payable or recoverable on differences between the
carrying value of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit and is accounted for using the balance sheet
liability method.

Deferred tax liabilities are generally recognized for all taxable temporary differences. In
contrast, deferred tax assets are only recognized to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilized.

The carrying value of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realized based on the tax rates and tax laws that have been
enacted or substantially enacted by the end of the reporting period. The measurement of
deferred tax liabilities and assets reflects the tax consequences that would follow from the

manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the
same tax authority and there are legally enforceable rights to set off current tax assets and
current tax liabilities within that jurisdiction.

Current and deferred tax are recognized as an expense or income in the statement of profit and
loss, except when they relate to items credited or debited either in other comprehensive income
or directly in equity, in which case the tax is also recognized in other comprehensive income or
directly in equity.

j) Investments in subsidiaries, associates

Investments in subsidiaries, associates and joint ventures are carried at cost/deemed cost
applied on transition to Ind AS, less accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of investment is assessed and an
impairment provision is recognized, if required immediately to its recoverable amount. On
disposal of such investments, difference between the net disposal proceeds and carrying
amount is recognized in the statement of profit and loss.

k) Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to
the contractual provisions of the instruments.

Financial Assets

• Initial recognition and measurement

All financial assets, except investment in subsidiaries and associate, are recognized initially at
fair value. Transaction costs that are attributable to the acquisition or issue of financial asset,
which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial
recognition. Purchase and sale of Financial Assets are recognized using trade date accounting.

• Subsequent measurement

For purposes of subsequent measurement, financial assets are primarily classified in three
categories:

a) Financial Assets measured at Amortized Cost

A Financial Asset is measured at Amortized Cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual terms
of the Financial Asset give rise to cash flows on specified dates that represent solely payments
of principal and interest on the principal amount outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective
is achieved by both collecting contractual cash flows and selling Financial Assets and the
contractual terms of the Financial Asset give rise on specified dates to cash flows that
represents solely payments of principal and interest on the principal amount outstanding.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories are measured at FVTPL.
Financial assets are reclassified subsequent to their recognition, if the Company changes its
business model for managing those financial assets. Changes in business model are made and
applied prospectively from the reclassification date which is the first day of immediately next
reporting period following the changes in business model in accordance with principles laid
down under Ind AS 109 - Financial Instruments.

• Other Equity Investments

All other equity investments are measured at fair value, with value changes recognized in
Statement of Profit and Loss. Dividend on such equity investments is recognized in Statement
of Profit and loss when the Company's right to receive payment is established. However,
investment in partnership firms is carried at cost/ deemed cost applied on transition to Ind AS,
less accumulated impairment losses, if any.

• Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for
evaluating impairment of Financial Assets other than those measured at Fair Value Through
Profit and Loss (FVTPL).

Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting
date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument).

For Trade Receivables the Company applies 'simplified approach' which requires expected
lifetime losses to be recognized from initial recognition of the receivables. The Company uses
historical default rates to determine impairment loss on the portfolio of trade receivables. At all
reporting date these historical default rates are reviewed and changes in the forward-looking
estimates are analyzed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there

is no significant increase in credit risk. If there is significant increase in credit risk full
lifetime ECL is used.

Financial Liabilities

• Initial recognition and measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of
directly attributable cost. Fees of recurring nature are directly recognized in the Statement of
Profit and Loss as finance cost.

• Subsequent measurement

Financial Liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amount
approximate fair value due to the short maturity of these instruments.

Derecognition of Financial Instruments

The Company derecognizes a Financial Asset when the contractual rights to the cash flows
from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for
derecognition under Ind AS 109. A Financial liability (or a part of a financial liability) is
derecognized from the Company's Balance Sheet when the obligation specified in the contract
is discharged or cancelled or expires.

Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the
balance sheet when, and only when, the Company has a legally enforceable right to set off
the amount and it intends, either to settle them on a net basis or to realize the asset and settle
the liability simultaneously.

l) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

The financial instruments are categorized into three levels based on the inputs used to arrive at
fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than the quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly; and
Level 3: Inputs based on unobservable market data.

When the fair value of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques including Discounted Cash Flow Model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of

judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risks, credit risks and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments. Further details are set out in Note
5.5.

m) Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government. The Company has concluded that it is the principal in all of its
revenue arrangements since it is the primary obligor in all the revenue arrangements as it has
pricing latitude and is also exposed to inventory and credit risks.

The specific recognition criteria described below must also be met before revenue is
recognized.

Sale of products

Revenue from the sale of products is recognized when the significant risks and rewards of
ownership of the products have passed to the buyer, usually on delivery of the products.
Revenue from the sale of products is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.

Interest income

Interest Income from a Financial Assets is recognized using effective interest rate method.

Dividend Income

Dividend Income is recognized when the Company's right to receive the amount has been
established.

n) Finance Costs

Borrowing costs that are directly 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 its intended use.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.

o) Foreign Currencies Transactions

The financial statements of the Company are presented in Indian Rupees ("?"), which is the
functional currency of the Company and the presentation currency for the financial
statements.

In preparing the financial statements, transactions in currencies other than the Company's
functional currency are recorded at the rates of exchange prevailing on the date of the
transaction. At the end of each reporting period, monetary items denominated in foreign
currencies are re- translated at the rates prevailing at the end of the reporting period. Exchange
differences arising on settlement or translation of monetary items are recognized in Statement
of Profit and Loss.

In the case of forward contract, if any, difference between the forward rate and the exchange
rate on the transaction date is recognized as income or expenses over the lives of the related
contracts. The differential gain/loss is recognized in Statement of Profit and Loss.

p) Earnings per Share

Basic earnings per share is computed by dividing profit or loss for the year attributable to
equity holders by the weighted average number of shares outstanding during the year. Partly
paid-up shares are included as fully paid equivalents according to the fraction paid up.

Diluted earnings per share is computed using the weighted average number of shares and
dilutive potential shares except where the result would be anti-dilutive.

Key Accounting Estimates & Judgements

1. Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting
period. The policy has been detailed in Note 2(I), and its further information are set out in
Note 5.1.

2. Defined benefit plan

The cost of the defined benefit plans and other post-employment benefits and the present
value of the obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments in the future.
These include the determination of the discount rate, future salary increases, mortality rates
and future pension increases. Due to the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

The parameter that is subject to change the most is the discount rate. In determining the
appropriate discount rate, the management considers the interest rates of government bonds in
currencies consistent with the currencies of the post-employment benefit obligation and

extrapolated as needed along the yield curve to correspond with the expected term of the
defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to
change only at intervals in response to demographic changes. Future salary increases are after
considering the expected future inflation rates for the country.

Refer to Note 5.2 for further details.

3. Property, Plant and Equipment

The Company reviews the useful life of property, plant and equipment and intangible assets
at the end of each reporting period. This reassessment may result in change in depreciation and
amortization expense in future periods. The policy has been detailed in Note 2(C) above.

4. Recoverability of Trade Receivables

Judgements are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Estimated irrecoverable
amounts are derived based on a provision matrix, which takes into accounts various factors
such as customer specific risks, geographical region, product type, customer rating, type of
customer, the amount and timing of anticipated future payments and any possible actions that
can be taken to mitigate the risk of non-payment.

Note 5.4 : Capital Management

The Company's capital management is intended to create value for shareholders by facilitating the achievement of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic investment and
expansion plans.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest
bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

(ii) Quantitative disclosures fair value measurement hierarchy for liabilities :

Company does not have any financial liability which is measured either at Fair value through profit and loss account or measured at Fair value through other
comprehensive income.

(c) Financial risk management

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit
risk, which may adversely impact the fair value of its financial instruments.

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating actions taken by
the management to minimise potential adverse effects and achieve greater predictability to earnings. In line with the overall risk management framework and
policies, the management monitors and manages risk exposure through an analysis of degree and magnitude of risks.

Market risk

Market risk Market risk is the risk of any loss in future earnings, in realising fair values or in future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price
fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

Interest rate risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on
the Company's cash flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company's interest rate
exposure is mainly related to debt obligations.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings. With all other variables held constant, the
Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

Equity price risk

Equity price risk is related to change in market reference price of investments in equity securities held by the Company. The fair value of quoted investments held
by the Company exposes the Company to equity price risks. In general, these investments are not held for trading purposes.

The fair value of quoted investments in equity, classified as fair value through profit and loss as at March 31, 2024 and March 31, 2023 was ^678 and ^554,
respectively.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Financial
instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, balances with bank, bank deposits.
None of the financial instruments of the Company result in material concentration of credit risk.

Trade receivables

Customer credit risk is managed by the Company's internal policies, procedures and control relating to customer credit risk management. Credit quality of a
customer is assessed based on market feedback and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly
monitored.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in
independent markets.

Note 5.11 : Disclosures required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:

The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise registered under the applicable category as per the provisions of the Micro,
Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the confirmations received by the
company upto the date of the financial statements.

Note 5.12 : Other Notes

i) The figures for the previous year have been reclassified/ regrouped wherever necessary for better understanding and comparability.

ii) The balances of trade receivables, other current andd non current assets, trade payables and other current and non current liabilitiesare unsecured and subject to confirmation from the respective
parties.

iii) The company has invested in two partnership firms and balance outstanding in current capital account as on March 31, 2024 is Rs.24.70 Crores (As on March 31, 2023 Rs.34.76 Crores). Persuant to
partnership deed exceuted among partners no interest is payable or recoverable to or from partners on balances outstanding in current capital account.

iv) In the opinion of the Management Long Term Loans and Advances, Other Non Current Assets, Current Assets and Other Current Assets fetch approximately the value as stated in the Financial
Statement if realised in the ordinary course of business subject to balance confirmation. The provision for all known liabilities is adequate and is not in excess of amounts considered reasonably
necessary.

v) It is informed by the Management that the Company has not availed unsecured loan from any related parties repayable on demand as on March 31, 2024.(Balance as on March 31, 2023 was Rs. 15.48
Crores), Loan of one related party was repaid in full and having Nil outstanding balance as on March 31, 2023. The terms and condiion of loan taken is not prejudicial to the interest of the Company.

The accompanying notes are an integral part of the Standalone financial statements
As per our report of even date

For LSM & Co. For S.N. Shah & Associates For and on behalf of the Board

Chartered Accountants Chartered Accountants Inducto Steels Limited

FRN : 116870W FRN : 109782W

Rajeev Reniwal Sweety Reniwal

Director Director

DIN: 00034264 DIN: 00041853

CA Navneet Lahoti CA Dhruvin Joshi

Partner Partner

Membership No. 100529 Membership No. 612290

UDIN : 24100529BKFSXO9329 UDIN : 24612290BJZZQM8855 Fulvanti Jain Dilip Kaushik

Company Secretary Chief Financial Officer

Place: Mumbai Place: Ahmedabad Place: Mumbai

Date: 30-05-2024_Date: 30-05-2024_Date: 30-05-2024_