Key Resolution Details

  • Resolution Type: Special Resolution through Postal Ballot via e-voting only
  • Subject Matter: Disposal of Plant & Machinery of Ferro Alloy Plant at Rudhraram Village, Patancheruvu Mandal, Sangareddy District, Telangana
  • Legal Basis: Section 180(1)(a) of Companies Act, 2013 and other applicable provisions

Voting Schedule

  • Cut-off Date: Wednesday, 17th June 2026 (Record Date for determining voting rights)
  • E-voting Commencement: Monday, 22nd June 2026 at 9:00 AM IST
  • E-voting Conclusion: Tuesday, 21st July 2026 at 5:00 PM IST
  • Results Declaration: On or before Thursday, 23rd July 2026

Service Providers

  • E-voting Service Provider: CDSL (Central Depository Services India Limited)
  • Scrutinizer: M/s BSS & Associates, Company Secretaries
  • Registrar & Transfer Agent: Venture Capital & Corporate Investments Pvt Ltd

Reasons for Plant Disposal (As per Explanatory Statement)

The Company faced persistent operational and financial challenges at its Ferro Alloy Plant:

Technical Issues:

  • Submerged Arc Furnace (SAF) technology sourced from Russia with open hood configuration
  • Critical mechanical components exposed to extreme heat causing frequent damage
  • Operations limited to 60-70% of installed capacity due to repeated shutdowns

Financial Challenges:

  • Power costs accounted for nearly 80% of finished product cost
  • Power tariffs increased from ₹5.50 to ₹8.00 per unit in 2023
  • Additional cost of approximately ₹21,250 per ton due to tariff escalation
  • Plant consumes ~8,500 units per ton of Ferro Silicon
  • Market volatility in Ferro alloys industry with sharp price declines

Regulatory & Environmental Constraints:

  • Villagers lodged complaints with Pollution Control Board regarding emissions
  • Regulatory restrictions imposed due to environmental concerns
  • Rapid urbanization in plant area leading to local resistance against polluting industries

Viability Assessment:

  • Independent Chartered Engineer appointed found restart not viable
  • Cited technological obsolescence, high power intensity, volatile market conditions
  • Complete refurbishment and pollution control equipment would require substantial capital cost

Asset Disposal Plan

  • Plant, machinery, equipment and other movable assets to be disposed in "as is where is" condition
  • Disposal through transparent sale process
  • Land will be retained for future monetization through alternative economic uses

Utilization of Proceeds

Net proceeds from the sale will be utilized for:

  • Repayment of existing loans and reduction of interest burden
  • Enhancement of working capital of the Company
  • General business purposes

Document Availability

  • Available on company website: www.chromesilicon.com
  • Available on CDSL e-voting website: www.evotingindia.com
  • Available on BSE website: www.bseindia.com