Group Companies
Sarda Energy & Minerals Hong Kong Limited (SEMHL) is a wholly owned subsidiary, functioning as global investment arm of your Company. During the year under review, the subsidiary reported a net loss of Rs. 5.71 crore as against net profit of Rs. 10.83 crore in the previous year. The loss is mainly on account of mark to market of investments held for trading. The company has paid a dividend of USD 2.8 Million during the year (Pr. Year USD 2 Mn).

Sarda Global Venture Pte Limited a wholly owned subsidiary, has acquired economic interest in coal mines in Indonesia but the mining project has not seen any progress during the year. The Company is evaluating the various options for its stake in the coal mine in the best interest of all stake holders. During the year under review, the subsidiary reported a net loss of Rs. 0.82 crore (PY Rs. 0.65 crore), mainly on account of administrative and financial costs

Sarda Metals & Alloys Limited 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.

Sarda Energy Limited a wholly owned subsidiary was incorporated as an SPV to put-up 1320 MW super critical IPP thermal power project in Chhattisgarh. In view of inordinate delay in acquisition of land, delay in getting various approvals and changed economic scenario particularly for power sector, the company has abandoned the project. In view of this, during the year under review the subsidiary has bought back 25% of the equity shares, as permitted by the prevailing guidelines, out of the funds got released on abandonment of the project. Balance amount has been invested in MBPCL and loans to other entities. During the year under review, the subsidiary reported a net profit of Rs. 4.16 crore as against net loss of Rs. 6.07 crore in the previous year.

Parvatiya Power Private Limited is operating 4.8 MW Loharkhet Hydro Power project in Bageshwar district of Uttarakhand. The Company has supplied 182.60 lac KWh (Previous Year 203.42 lac KWh). The generation/supply were adversely affected because of constraints in transmission line. A new 132 KV line is under installation. The Company has repaid in full the term loan taken for the project. During the year, the Company has earned profit after tax of Rs. 2.52 crore (Previous Year Rs. 2.87 Crore). As of 31st March, 2016 the Company has invested Rs. 18.44 crore in Sarda Dairy & Food Products Limited for a 42.78% stake in the company. Your Company continues to hold 51% stake in PPL. PPL.

Madhya Bharat Power Corporation Limited is implementing 96 MW (2X48) Rongnichu HEP near Gangtok in East Sikkim. It is a run of the river scheme, a CDM registered project. The civil works of the project is going on in full swing with more than half of excavation works of critical underground tunnel completed. PFC, the lead lender and IDBI Bank has approved revised project cost and scheduled COD. Approval of PFS, another lender is expected shortly. Your Company alongwith SEL has invested Rs. 156.72 crore as of 31st March, 2015 and holds 76.74% stake in the project (63.54% directly and 13.20% through its wholly owned subsidiary Sarda Energy Limited) as compared to 67.59 % in previous financial year. The project is expected to be operational in the F.Y. 2018-19. During the year under review, the subsidiary reported a net loss of Rs. 2.35 crore as against net loss of Rs. 0.03 crore in the previous year. The loss increased due to tax expenses related to earlier years.

Chhattisgarh Hydro Power LLP is pioneer in the state of Chhattisgarh for implementation of Hydro Power projects under IIP route. The firm has been allotted four run of river scheme small hydel power projects with total installed capacity of 77 MW. The construction of 24 MW Gullu SHP in Jashpur District is under progress. The project is likely to commission ahead of Scheduled COD of April 2017. The project is eligible for MNRE subsidy and other incentives for renewable projects. The other projects are in different stages of clearances. Your Company has made an additional contribution of Rs. 2.67 crore during the year towards its 60.92% share in the LLP.

Sarda Hydro Power Pvt Ltd. Sarda Hydro Power Private Limited (SHPPL) has been allotted 24 MW Kotaiveera and 9 MW Ganeshpur small hydro projects in the state of Chhattisgarh. The projects are in clearance stage. Your Company continues to hold 60% stake in this company.

Shri Ram Electricity LLP. was incorporated as a special purpose vehicle (SPV) for setting up a captive thermal power plant of 40 MW in the State of Chhattisgarh. In view of the cancellation of coal linkage for the power project, the LLP has dropped the project. During the year under review, the entity reported a net profit of Rs. 0.08 crore as against net loss of Rs. 0.50 crore in the previous year. Your Company continues to hold 51% stake in SRELLP.

Raipur Industrial Gases Pvt. Ltd. Raipur Industrial Gases Pvt. Ltd. (RIGPL) has been incorporated to undertake activities related to production of industrial gases. The company is yet to start operations. Your Company holds 51% stake in RFPL.

Raipur Fabritech Pvt. Ltd Raipur Fabritech Pvt. Ltd (RFPL) has been incorporated to undertake steel fabrication activities at the site of closed steel plant of your Company. The company is also exploring possibility of developing a logistic park. The Company is yet to start operations. Your Company holds 52.38% stake in RFPL.

Natural Resources Energy Pvt. Ltd Natural Resources Energy Pvt. Ltd. (NREPL) is an SPV to carry on the business of development of mines and minerals, generation and trading of power and infrastructure development. The company had participated in the auction of coal mines as an SPV. The entire share capital of the company is held by SEML and its wholly owned subsidiary SMAL.

Raipur Infrastructure Company Ltd. operates a private Railway Siding in Mandhar, Raipur. During the year 2015-16 the Company has earned net profit of Rs. 2.62 crore as against Rs. 1.02 crore in the previous year. The company is pursuing with the Railways for getting refund of Rs. 5 crore deposited as security for siding at Odisha, which project has been dropped by the company. Your Company continues to holds one third share in the Joint Venture.