Sarda Metals & Alloys Limited (SMAL)
, a wholly owned subsidiary is operating 2 x 33 MVA Ferro Alloys plant backed
by 80 MW captive thermal power plant. During the year, power generation was 612.83 MU as against 601.50 MU in
the previous year. The ferro alloys production (including MnO slag) stood at 49,955 MTs as against 57,143 MT in the
previous year. The company’s exports stood at Rs 87 crore as against Rs 139 crore in the previous year. The production
and export of ferro alloys was curtailed due to adverse market conditions. Power accounted for more than half the
revenue of the Company while ferro alloys contributed around 48% of the revenue.
Inspite of adverse market conditions the company has reported profit before tax of
Rs 4.86 crore against Rs 7.20 crore reported in the previous year. The profit after tax for the year is negative
Rs 2.56 crore because of derecognition of MAT credit of Rs 4.45 crore. The company has derecognise MAT credit looking into the substantial amount of Unabsorbsed
Depreciation as per the Income Tax Act.