INDIAN METAL & FERRO ALLOYS LIMITED (IMFA), a pioneer in producing silicon alloys, today focus is on ferro chrome which imparts the non-corrosive property to stainless steel. A significant portion above 80% of output is exported to the Far East (China, Japan & Taiwan). However, domestic consumption to go up sharply as it is ideally positioned to cater demand. The company 40% revenue is from long term contract with POSCO, Nisshin Steel, JSW, etc. The company has mining division to cater to the raw material requirement. The entire output is consumed in-house. The company also has power division which is a captive power plant. The company is fully integrated with both the captive chrome ore and captive power generation capacity.

The company has six furnaces adding up to 187 MVA have been set up at Therubali (Rayagada District) and Choudwar (Cuttack District) in Odisha thus making us the largest merchant producer of ferro chrome in India capable of producing up to 275,000 tonnes per annum.

The company has built zero effluent water discharge system, automated plants for manufacture 100,000 bricks per day from fly ash & slag. The company has commissioned Low Density Aggregate (LDA) or sintered fly ash aggregate plant at Choudwar, Dist-Cuttack, Odisha with an installed capacity of 1,75,000 MT per annum. LDA is unique among fly ash based products with more than 90% fly ash in its composition.

The company has various subsidiaries, but currently major business is in the company. The Subsidiaries are as follows:

Table No 1: Subsidiaries Companies

Sr. no. Name of the Company %age Equity Investment as on 31st March 2017 (Rs. in cr.) Loan Given (Rs. in cr.)
1. IMFA Alloys Finlease Limited 76% 2.30
2. Indian Metals and Carbides limited 99.99% 0.06
3. Utkal Coal Limited 79.2% 111.42 262.81
4. Utkal Green Energy Limited 100% 1.06
5. Utkal Power Limited 100% 0.45
6. Indmet Mining Pte Limited (Singapore) 100% 53.13
7. Pt Sumber Rahayu Indah (Indonesia) 70% Step down subsidiary – (Subsidiary of Indmet)

Please note:

  • PT Sumber is holding a coal mining concession in Indonesia but due to overlapping boundary issues, the mining concession could not be operationalised till date. No provision is considered necessary by the Company at this stage towards any diminution in the carrying value of it’s investment in Indmet amounting to Rs. 53.13 crore.
  • The Hon’ble Supreme Court of India vide judgment dated 25th August 2014 read with its order dated 24th September, 2014 cancelled the allocation of coal blocks ‘Utkal C’ coal block held by Utkal Coal Ltd.(‘UCL’). UCL has filed a Writ and Special Leave Petition against writ petition order by High court before the Hon’ble Supreme Court challenging the order. Pending resolution of the said matters, no accounting adjustments have been made by UCL in its books of account. The Company’s has exposure in UCL as at 31st March 2017 amounting to Rs. 111.42 crore invested as equity and Rs. 262.81 crore given as an unsecured loan. As an outcome of writ petition the company can get only refund of money given for the coal blocks as those coal blocks are already auctioned to the companies who are actual users.
  • Utkal Green Energy Limited and Utkal Power limited are engaged in some of the power projects of the company.
  • The investment in Indian Metals and Carbides limited has been impaired by the company in last year from Rs. 1.12 crores to Rs. Rs. 0.06 crores

TRANSACTION

The Board of Directors of the Company approved a Scheme of Amalgamation involving amalgamation of Indian Metals and Carbide Limited (IMCL), a wholly owned subsidiary of the Company and B. Panda and Company Private Limited (B Panda), the holding company of the Company, into the Company.

Please note: The scheme is subject to necessary regulatory approvals, will be effective from the appointed date i.e. 1st April 2017 and no effect to the same has been given in the books of accounts as yet.

Indian-Metals-Amalgamation-Merger-1

Earlier to this transaction, companies which held major investment in IMFA where consolidated with B Panda and unrelated undertakings mainly real estate and other investment were demerged into the resulting companies. This transaction was executed through the Composite Scheme of Arrangement between B.Panda and Company Private Limited (Transferee Company) and Barabati Investment & Trading Co. Private Limited, Indmet Commodities Private Limited, K. B. Investments Private Limited, Madhuban Investments Private Limited, Paramita Investments & Trading Company Private Limited (collectively referred to as the “Transferor Companies” and individually referred to as a “Transferor Company”), Utkal Real Estate Private Limited, Barabati Realtors Private Limited, BP Developers Private Limited (collectively referred to as the Resulting Companies” and individually referred to as a “Resulting Company”) and their respective shareholders, Transferor Companies got merged with the Transferee Company effective 22nd November, 2016. Having Appointed Date 1st April 2013.

AMALGAMATIONS

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