Inducto Steel announced a significant change in its auditing team as LLB & Co., Chartered Accountants, tendered their resignation as Joint Statutory Auditors, effective August 13, 2025. The company disclosed this information in a regulatory filing to the Bombay Stock Exchange (BSE) in compliance with SEBI regulations.

Reasons for Resignation

According to the resignation letter submitted by LLB & Co., the primary reason for their departure is pre-occupation with other assignments. The auditing firm expressed their inability to continue as Joint Statutory Auditors of Inducto Steel due to these commitments.

Auditor's Tenure and Recent Work

LLB & Co. was initially appointed for a term of five consecutive financial years, from April 1, 2024, to March 31, 2029. Their appointment began on July 9, 2024. Prior to their resignation, the firm's most recent engagement with Inducto Steel involved preparing the Limited Review Report for the quarter ended June 30, 2025.

Regulatory Compliance and Disclosures

In adherence to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, and SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019, Inducto Steel provided detailed information regarding the auditor's resignation. The company confirmed that there were no material reasons for the resignation beyond those stated by LLB & Co.

No Outstanding Concerns

Importantly, LLB & Co. affirmed that they had not raised any concerns with the Audit Committee or Board of Directors prior to their resignation. This declaration suggests that the departure is amicable and not related to any underlying issues with the company's financial reporting or governance.

Next Steps

Inducto Steel will now need to appoint a new Joint Statutory Auditor to fill the vacancy left by LLB & Co. The company is expected to initiate the process of selecting a new auditor in due course, ensuring continuity in its financial reporting and compliance obligations.

Shareholders and investors of Inducto Steel should take note of this change in the company's auditing team. While the resignation appears to be due to the auditor's other commitments rather than any issues with the company itself, it is an important corporate governance matter that warrants attention.

Inducto Steel Limited , a prominent player in the steel industry, has released its financial results for the first quarter, revealing a mixed performance with improved revenue but continued losses.

Financial Highlights

The company reported a net loss of Rs 24.76 lakhs for the quarter, showing a significant improvement compared to a loss of Rs 91.76 lakhs in the same period last year. Despite the loss, Inducto Steel Limited witnessed a substantial increase in its revenue from operations, which rose to Rs 4,585.32 lakhs from Rs 3,864.72 lakhs year-on-year, marking an 18.60% growth.

Segment-wise Performance

Inducto Steel's operations are primarily categorized into two geographic segments: Mumbai and Bhavnagar. The Mumbai segment emerged as the primary revenue generator, contributing Rs 4,554.85 lakhs to the total revenue. In contrast, the Bhavnagar segment reported a modest revenue of Rs 46.75 lakhs.

Profitability and Expenses

While the company's top-line showed improvement, profitability remained a challenge. The earnings per share (EPS) stood at negative Rs 0.62 for the quarter. The company's total expenses for the quarter amounted to Rs 4,621.00 lakhs, slightly higher than its total income of Rs 4,587.93 lakhs.

Key expense items included:

• Purchases of Stock-in-Trade: Rs 4,674.64 lakhs
• Finance costs: Rs 83.31 lakhs
• Employee benefits expense: Rs 16.27 lakhs

Balance Sheet and Investments

As of the quarter-end, Inducto Steel Limited's total assets stood at Rs 6,819.41 lakhs. The company has significant investments in two partnership firms, with the balance in current and fixed capital accounts totaling Rs 2,921.00 lakhs, representing 42.83% of the company's total assets.

Auditor's Observations

The auditors have highlighted concerns regarding the company's investments in two partnership firms. They noted that capital invested in one firm, amounting to Rs 2,877.00 lakhs, has been utilized for granting advances for initiating joint ventures and excess capital withdrawal of a few partners. The auditors pointed out that this firm has neither commenced any joint venture as intended nor recovered the advances, posing a potential recoverability risk that could significantly impact the company's financial position.

Management's Perspective

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. The company's management has prepared these financial results in accordance with Indian Accounting Standards (Ind-AS) and other accounting principles generally accepted in India.

While Inducto Steel Limited has shown improvement in its top-line performance, the continued losses and the auditors' concerns regarding investments highlight the challenges the company faces. Stakeholders will be closely watching the company's strategies to address these issues and return to profitability in the coming quarters.