MIRA INFORM REPORT

Report Date :

16.09.2011

IDENTIFICATION DETAILS

Name :	SKM STEELS LIMITED
Registered Office :	30 C. P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.12.1994
Com. Reg. No.:	11-83403
Capital Investment / Paid-up Capital :	Rs.49.900 millions
CIN No.: [Company Identification No.]	U27100MH1994PLC083403
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37214C / MUMS41878E / MUMS42024D
PAN No.: [Permanent Account No.]	AADC57801F / AADC57801F / AADC57801F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Export of Stainless Steel Products.
No. of Employees :	About 150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 4900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company fine track. General Financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Name :	Mr. P M Suresh
Designation :	Accounts Manager
Date :	14.09.2011
Name :	Mr. Girish Chaudhary
Designation :	Export Manager
Date :	14.09.2011

LOCATIONS

Registered Office :	30 C. P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23862884 / 22336691 / 56336691 / 40716600 / 40716666
Fax No.:	91-22-23886165 / 23805392 / 94
E-Mail :	skm@bom3.vsnl.net.in pankajshah@skmsteels.com sales@skmsteels.com accounts@skmsteelsltd.com export@skmsteelsltd.com
Website :	http://www.skmsteels.com
Location :	Rented
Head Office :	SKM House, 12, Khetwadi 6^th Lane, Mumbai – 400 004, Maharashtra, India
Factory :	Plot No. 2803, GIDC Phase III, Umbergaon - 396 171, District Valsad, Gujarat, India
Branches :	· 13, Mooker Nalla , Muthu Street, Chennai – 600 001, Tamilnadu, India · 311, Apollo Tower, M.G. Road, Indore, (Madhya Pradesh) · 202, Ashwarath, Opposite Fortune Landmark,Usmanpura, Ashram Road, Ahmedabad – 380 013, India
Export Division :	66, C P Tank Road, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-66272727
Fax No.:	91-22-66570103
E-Mail :	export@skmsteelsltd.com sales@skmsteelsltd.com

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Kirtilal Moolchand Shah

Designation :

Chairman and Managing Director

Address :

Flat No. 1001, 10^th Floor, Garden View, 8 Walkeshwar, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

01.03.1949

Date of Appointment :

01.12.1994

DIN No.:

00105703

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28100MH1983PLC029050	SKM Industries Private Limited	Director	05-01-83	05-01-83	-	Active	NO
2	U70102MH1983PTC031098	SKM Realty Private Limited	Director	13-10-83	13-10-83	-	Active	NO
3	U65944MH1983PTC031087	SKM Capital and Holdings Private Limited	Director	13-10-83	13-10-83	-	Active	NO
4	U45200MH1983PTC031489	Shree Sejal Construction Private Limited	Director	05-12-83	05-12-83	-	Active	NO
5	U24110MH1984PTC031790	SKM Enterprises Private Limited	Director	09-01-84	09-01-84	-	Active	NO
6	U45202MH1985PTC035590	SKM Constructions Private Limited	Director	12-03-85	12-03-85	-	Active	NO
7	U27100MH1994PLC083403	SKM Steels Limited	Managing director	01-12-10	01-12-94	-	Active	NO
8	U17120MH1997PTC105599	SKM Apparels Private Limited	Director	03-02-97	03-02-97	-	Active	NO
9	U27100MH1997PTC111184	SKM Alloys Private Limited	Director	09-10-97	09-10-97	-	Active	NO
10	U25200GJ1990PLC014554	Heavy Metal And Tubes Limited	Whole-time director	18-03-99	18-03-99	-	Active	NO
11	U45102MH2001PTC131232	Shree Parul Developers Private Limited	Director	15-03-01	15-03-01	-	Active	NO
12	U51420MH1997PTC105245	SKM Metal Processors Private Limited	Director	26-11-03	26-11-03	-	Active	NO
13	U74999MH2003PTC143045	BKC Developers Private Limited (CN)	Director	30-09-06	08-04-06	01-02-10	Active	NO
14	U70100MP2008PTC020178	Sunstar Infratech Private Limited	Director	02-01-08	02-01-08	-	Active	NO
15	U65910GJ1995PLC028135	Khyati Fincap Limited	Director	25-02-08	25-02-08	-	Active	NO
16	U65993GJ2008PTC054125	HM Financial Services Private Limited	Director	04-06-08	04-06-08	-	Active	YES
17	U67120MP1995PTC009168	SKM Ramdin Ultratech Private Limited	Additional director	25-11-10	25-11-10	-	Active	NO

Name :

Mr. Pankaj Dahyalal Shah

Designation :

Director

Address :

Flat No. 605, 6^th Floor, Deccan Vikas, Khotachiwadi, V P Road, Mumbai – 400 004, Maharashtra, India

Date of Birth/Age :

19.02.1973

Date of Appointment :

01.12.1994

DIN No.:

00078997

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65944MH1983PTC031087	Skm Capital and Holdings Private Limited	Director	01-08-94	01-08-94	27-03-10	Active	NO
2	U27100MH1994PLC083403	SKM Steels Limited	Whole-time director	01-08-07	01-12-94	-	Active	NO
3	U24110MH1984PTC031790	SKM Enterprises Private Limited	Director	01-09-99	01-09-99	24-03-10	Active	NO
4	U45102MH2001PTC131232	Shree Parul Developers Private Limited	Director	15-03-01	15-03-01	30-03-10	Active	NO
5	U28100MH1983PLC029050	SKM Industries Private Limited	Director	16-02-04	16-02-04	25-03-10	Active	NO
6	U51909MH2009PTC189603	Maitri Metals Private Limited	Director	15-01-09	15-01-09	-	Active	NO

Name :

Mr. Chirag Shantilal Shah

Designation :

Director

Address :

704, Gokul Apartments, 14^th Khetwadi Back Road, Mumbai – 400 004, Maharashtra, India

Date of Birth/Age :

19.03.1977

Date of Appointment :

01.07.2000

DIN No.:

00081637

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27100MH1994PLC083403	SKM Steels Limited	Director	01-07-00	01-07-00	Active	NO
2	U28100MH1983PLC029050	SKM Industries Private Limited	Director	01-08-00	01-08-00	Active	NO
3	U70102MH1983PTC031098	SKM Realty Private Limited	Director	01-08-00	01-08-00	Active	NO
4	U45202MH1985PTC035590	SKM Constructions Private Limited	Director	01-08-00	01-08-00	Active	NO
5	U65944MH1983PTC031087	SKM Capital and Holdings Private Limited	Director	25-08-01	25-08-01	Active	NO
6	U24110MH1984PTC031790	SKM Enterprises Private Limited	Director	31-10-01	31-10-01	Active	NO
7	U51420MH1997PTC105245	SKM Metal Processors Private Limited	Director	26-11-03	26-11-03	Active	NO
8	U70100MP2008PTC020178	Sunstar Infratech Private Limited	Director	02-01-08	02-01-08	Active	NO
9	U45102MH2001PTC131232	Shree Parul Developers Private Limited	Director	31-01-08	31-01-08	Active	NO
10	U74999MH2008PTC185413	Shaswat Enterprises Private Limited	Director	04-08-08	04-08-08	Active	NO
11	U45400MH2010PTC198967	Shaswat Realtors Private Limited	Director	15-01-10	15-01-10	Active	NO
12	U67120MP1995PTC009168	SKM Ramdin Ultratech Private Limited	Additional director	25-11-10	25-11-10	Active	NO
13	U45200MH1983PTC031489	Shree Sejal Construction Private Limited	Director	30-04-11	30-04-11	Active	NO
14	U45200MP2007PTC019444	Mahima Infrastructures Private Limited	Additional director	05-05-11	05-05-11	Active	NO

Name :

Mr. Amit Kirtilal Shah

Designation :

Director

Address :

Flat No. 1001, 10^th Floor, Garden View, Walkeshwar, Nepeansea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

03.08.1980

Date of Appointment :

11.06.2001

DIN No.:

00105932

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27100MH1994PLC083403	SKM Steels Limited	Director	11-06-01	11-06-01	-	Active	NO
2	U70102MH1983PTC031098	SKM Realty Private Limited	Director	16-07-01	16-07-01	-	Active	NO
3	U51420MH1997PTC105245	SKM Metal Processors Private Limited	Director	26-11-03	26-11-03	-	Active	NO
4	U45202MH1985PTC035590	SKM Constructions Private Limited	Director	30-01-04	30-01-04	-	Active	NO
5	U27100MH1997PTC111184	SKM Alloys Private Limited	Director	15-03-06	15-03-06	-	Active	NO
6	U70102MH2007PTC169658	Hari Krupa Realty Private Limited	Director	05-04-07	05-04-07	-	Active	NO
7	U28100MH1983PLC029050	Skm Industries Private Limited	Director	28-01-08	28-01-08	-	Active	NO
8	U65944MH1983PTC031087	SKM Capital and Holdings Private Limited	Director	28-01-08	28-01-08	-	Active	NO
9	U45102MH2001PTC131232	Shree Parul Developers Private Limited	Director	31-01-08	31-01-08	-	Active	NO
10	U65910GJ1995PLC028135	Khyati Fincap Limited	Director	21-04-08	21-04-08	-	Active	NO
11	U25200GJ1990PLC014554	Heavy Metal And Tubes Limited	Director	01-05-08	01-05-08	-	Active	NO
12	U45202MH2008PTC183432	Sak Builders Private Limited	Director	11-06-08	11-06-08	-	Active	NO
13	U45205MH2008PTC183433	Sak Infratech Developers Private Limited	Director	12-06-08	12-06-08	-	Active	NO
14	U72900GJ2010PTC059066	Nuclione Systems Private Limited	Director	04-01-10	04-01-10	28-01-11	Active	NO
15	U45400MH2010PTC198967	Shaswat Realtors Private Limited	Director	15-01-10	15-01-10	-	Active	NO
16	U67120MP1995PTC009168	SKM Ramdin Ultratech Private Limited	Additional director	25-11-10	25-11-10	-	Active	NO

Name :

Mr. Ramanugrah Ram Bahal Singh

Designation :

Director

Address :

B/ 34, Abhishek Apartment, Block No. 12, Cross Road – 2, Lokhandwala Complex, Andheri, Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

02.01.1946

Date of Appointment :

27.11.1995

DIN No.:

00369580

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27100MH1994PLC083403	SKM Steels Limited	Director	27-11-95	27-11-95	Active	NO
2	U25200GJ1990PLC014554	Heavy Metal And Tubes Limited	Director	17-08-07	17-08-07	Active	NO
3	L27101GJ1992PLC018101	Heera Ispat Limited	Additional director	25-05-11	25-05-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Kirtilal Moolchand Shah / Mrs. Veenaben Kirtilal Shah	475400
Amit Kirtilal Shah / Mrs. Veenaben Kirtilal Shah	474000
SKM Constructions Private Limited, Mumbai	400000
Veena K Shah	475000
Suryadeep Salt Refinery and Chemicals Work Limited , Mumbai	12000
Kailash Ficom Limited, Mumbai	18000
Zen Shaving Limited, Mumbai	4000
Tribhuvan Housing Limited, Mumbai	10000
Shah Kirtilal Moolchand HUF	468000
Shah Ruchita Amit	402900
Amit Kartiklal Shah HUF	476000
Chowdhary Anju Kalpesh	378000
Shah Sejal Chirag	365450
SKM Industries Private Limited, Mumbai	65000
SKM Capital Holdings Private Limited, Mumbai	15000
SKM Parul Developers Private Limited, Mumbai	110000
Megha Bhavesh Shah	125000
Juvenile Capfin Private Limited, Mumbai	490000
Total	4763750

Equity Share Break up as on 30.09.2010

Category	Percentage
Bodies corporate	23.60
Directors or relatives of directors	76.40
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Export of Stainless Steel Products.
Products :	Products Description	ITC Code No.
	Stainless Steel Wires/Rods	7221
	Flat – rolled products of iron or non alloy steel – cold rolled in coils – CR CA Coils / Sheets	7209
	Stainless Steel Scrap	7204
	· Stainless Steel Wire Rods · Stainless Steels Wire · Stainless Steel Round · Stainless Steel Billets/Wire Rod Scrap – 7204 · Stainless Steel Forgings · Valves · CR CA Coils/ Sheets – 7209 · GP Coil Sheet · HR Coil Sheet · S S Pipe Tubes · S S Rods/ Rounds/ Bright Bars – 7221 · S S Keys · Bearings

PRODUCTION STATUS AS ON 31.03.2009

On Job Work Basis:	Unit	Installed Capacity	Actual Production
Stainless Steel Bright Bars	M. Tonnes	9000	3671.370
Stainless Steels Wire	M. Tonnes	--	287.368
Stainless Steel Rods/ Round	M. Tonnes	--	16209.092
Stainless Steel Scrap	M. Tonnes	--	473.594
Power	(Kw)	750	1092.299

GENERAL INFORMATION

No. of Employees :

About 150 (Approximately)

Bankers :

· Bank of India.(Lead Bank), C. P. Tank Branch, Chandaramji Girl’s High School Building, 95 Vithalbhai Patel Road, Mumbai-400004, Maharashtra, India.

· Union Bank of India, Fort Branch,   Mumbai, Maharashtra, India

· Federal Bank Limited, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

· Hongkong and Shanghai Banking Corporation Limited, 52/60, M.G. Road, Fort, Mumbai – 400001, Maharashtra, India

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Credit Facilities from Bank of India – C.P. Tank Branch
Cash Credit Facility	51.379	0.000
Letters of Credit – DA Buyer credit	102.568	73.915
Letter of Credit – DA	49.582	0.000
Working Capital Demand Loan	168.600	332.000
Export Packing Credit Facility – Rupee Loan	121.837	142.610
Foreign Bill Discounting Facility	11.394	4.195
Credit Facility from Union Bank of India – Fort Branch
Channel Finance	162.500	0.000
Letters of Credit – DA Buyer credit	76.342	91.867
Working Capital Demand Loan	113.026	0.000
Infinity based revolving Line of Credit in the form of overdraft facility against personal guarantee of directors from
Federal Bank Limited	220.195	0.000
Standard Chartered Bank	224.529	50.994
HSBC Bank	134.409	104.111
Yes Bank Limited	98.200	0.000
Car Finance against Hypothecation of Motor Cars
ICICI Bank Limited	0.000	0.112
Reliance Capital Limited	0.196	0.514
Total	1534.762	800.318
Unsecured Loans
From directors	34.000	0.000
From Others	42.000	57.830
Other Loans and Advance – From Others	5.000	18.500
Total	81.000	76.330

Banking Relations :

--

Auditors :

Name :

R. M. Doshi and Company

Chartered Accountants

Address :

307, Vaishali Apartments, 30/31, Parekh Street, Prarthana Samaj, Mumbai – 400004, Maharashtra, India

Tel. No.:

91-22-67437416 / 17

Fax No.:

91-22-23824232

E-Mail :

mcdoshi@vsnl.com

Pan No.:

AABPD5830G

Associates (As On 2009):

· SKM Enterprises Private Limited.

Line of Business : Dealers and Importers in Stainless Steel Flat Product

· SKM Constructions Private Limited.

Line of Business : Real Estate Development.

· SKM Alloys Private Limited.(CIN No. U27100MH1997PTC111184)

Line of Business : Dealers and Stockists of Mild steel, Alloy Steel, Bright Bars

· Shree Steel Depot

Line of Business : Dealers and Stockists of Steel Rounds, Hex and other Bars.

· Bharat Steel Yard

Line of Business : Dealers and Stockists of Steel wires.

· Heavy Metal and Tubes Limited

· SKM Industries Private Limited

· SKM Metal Processors Private Limited

· BKC Developers Private Limited

· Khyati Fincap Private Limited

· Sunstar Infratech Private Limited

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- Each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4763750	Equity Share	Rs.10/- Each	Rs.47.638 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- Each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4990000	Equity Share	Rs.10/- Each	Rs.49.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		49.900	48.900	43.000
2] Share Application Money		20.000	45.348	0.000
3] Reserves & Surplus		1147.262	928.243	621.659
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1217.162	1022.491	664.659
LOAN FUNDS
1] Secured Loans		1534.762	800.318	1751.078
2] Unsecured Loans		81.000	76.330	124.435
TOTAL BORROWING		1615.762	876.648	1875.513
DEFERRED TAX LIABILITIES		11.557	12.116	12.196
TOTAL		2844.481	1911.255	2552.368
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.485	51.989	66.337
Capital work-in-progress		54.895	27.024	0.812
INVESTMENT		19.609	20.738	34.495
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	880.067	470.534	741.571
	Sundry Debtors	1766.559	1195.878	1627.450
	Cash & Bank Balances	179.173	173.420	124.044
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	137.733	138.871	110.455
Total Current Assets		2963.532	1978.703	2603.520
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	48.624	18.391	22.732
	Sundry Creditors	167.071	140.138	92.010
	Provisions	35.345	8.670	38.054
Total Current Liabilities		251.040	167.199	152.796
Net Current Assets		2712.492	1811.504	2450.724
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2844.481	1911.255	2552.368

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	9232.855	9454.387	9576.830
		Other Income	87.308	44.836	27.784
		TOTAL (A)	9320.163	9499.223	9604.614
Less	EXPENSES
		Raw Material Consumed	1485.197	1765.855	2227.745
		Cost of Goods Resold	7069.514	6837.585	6556.321
		Manufacturing and other Expenses	490.336	591.855	726.851
		Increase/Decrease in Stock	(21.832)	91.848	(160.731)
		TOTAL (B)	9023.215	9287.143	9350.186
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		296.948	212.080	254.428
Less	FINANCIAL EXPENSES (D)		86.078	175.794	124.309
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		210.870	36.286	130.119
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.289	5.716	7.487
	PROFIT BEFORE TAX (E-F) (G)		205.581	30.570	122.632
Less	TAX (I)		65.562	14.468	48.464
	PROFIT AFTER TAX (G-I) (J)		140.019	16.102	74.168
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		427.413	409.659	NA
	BALANCE CARRIED TO THE B/S		567.162	427.143	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	432.021	717.505	NA
	TOTAL EARNINGS		432.021	171.505	NA
	IMPORTS
		Trading Goods	302.707	302.707	326.756
	TOTAL IMPORTS		302.707	302.707	326.756
	Earnings Per Share (Rs.)		28.06	3.58	17.25

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.50	0.18	0.77
Net Profit Margin (PBT/Sales)	(%)	2.22	0.32	1.28
Return on Total Assets (PBT/Total Assets}	(%)	6.80	1.51	4.59
Return on Investment (ROI) (PBT/Networth)		0.16	0.03	0.18
Debt Equity Ratio (Total Liability/Networth)		1.53	1.02	0.23
Current Ratio (Current Asset/Current Liability)		11.80	11.83	1.70

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Dues to Micro and Small Enterprises	4.202	0.000	0.000
Due to others	162.869	140.138	92.010
Total	167.071	140.138	92.010

Business Results and Operations

Recessionary trends continued to prevail in the US and the European markets, however the domestic demands in view of development in infrastructure and other sectors in the Indian economy. With better demand and a good cash flow in the domestic markets, company could achieve turnover of Rs. 9232.900 against Rs. 94.544 millions witch was always comparable. Due to efficient management of funds and straights control over cost, profits before depreciation and taxes increased to Rs. 210.800 millions against Rs. 0.377 millions for the year resulting into a fourfold increase.

Prospects:

With the increase of demand in domestic market and less reliance on US and European markets, demand is picking up and the company expects to perform better.

Finance:

Increase in working capital requirement due to higher level of inventories and book debts, were met partle from the borrowed funds and partly from internal accruals addition to capital assets were funded from the internal accruals of the company.

Form 8

Corporate identity number of the company	U27100MH1994PLC083403
Name of the company	SKM STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	30 C. P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10104582
Type of charge	Book Debts Movable Property Others – Stocks
Particular of charge holder	Hongkong and Shanghai Banking Corporation Limited, 52/60, M.G. Road, Fort, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	Supplemental Deed for Hypothecation
Date of instrument Creating the charge	08.12.2009
Amount secured by the charge	Rs. 250.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction terms and as may be decided by the Bank and Company mutually from time to time. Terms of Repayment Repayable on demand annually renewable Margin Borrower shall at all times during the continuance of the security maintain a sufficient amount to provide the margin of security as may from time to time advised by the Bank. Extent and Operation of the charge First pari passu charge on all the company’s tangible movable assets including stocks and book debts both present and future of HSBC Bank Mumbai for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses.
Short particulars of the property charged	All the company’s stock in trade both present and future, including stocks of raw materials, work in progress, etc. All the company’s present and future book debts, outstanding monies, receivables, claims due and owing.
Particulars of the present modification	By this modification the overall limit is increased from Rs. 150.000 Millions to Rs. 250.000 Millions and the charge is secured now by first pari passu on all the company’s tangible movable assets including stocks and book debts both present and future.

This form is for

Modification of charge

Charge identification number of the modified

90160619

Corporate identity number of the company

U27100MH1994PLC083403

Name of the company

SKM STEELS LIMITED

Address of the registered office or of the principal place of business in India of the company

30 C. P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra, India

Type of charge

Book Debts

Movable Property

Particular of charge holder

Ø Bank of India.(Lead Bank)
C. P. Tank Branch, Chandaramji Girl’s High School Building, 95 Vithalbhai Patel Road, Mumbai-400004, Maharashtra, India.

E-Mail: cptank.mumbaisouth@bankofindia.co.in

Nature of description of the instrument creating or modifying the charge

Second supplemental joint deed of hypothecation for enhancement / additional limit

Date of instrument Creating the charge

25.03.2009

Amount secured by the charge

Rs.1250.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest as determined by each bank from time to time.

Terms of Repayment

On Demand

Margin

As per sanction terms of Bank

Extent and Operation of the charge

To secured the aggregate amount of Rs.1250.000 millions granted by the banks to the company as under:-

Banks	Limit
Bank of India	Rs.810.000 millions (Excluding disputed L/C of Rs.24.300 millions)
Union Bank of India	Rs.440.000 millions

Others

First pari passu charge to and in favour of Bank of India consortium consisting of Bank of India as lead Bank and union Bank of India as member of the consortium.

Short particulars of the property charged

The whole of the borrowers currents assets namely, stock of raw materials, stock in process, semi finished, and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares) Bills receivable and book debts and all other movable, both present and future lying or stored at the borrowers premises situated at Mumbai and/or wherever else the same may be.

Date of latest modification prior to the present modification

25.09.2007

Fixed Assets

· Freehold Land

· Leasehold Land

· Factory Building

· Other Building

· Plant and Machinery

· Electrical Installation

· Vehicles

· Furniture and Fixture

· Office Equipments

· Air Conditioner

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.84
UK Pound	1	Rs.75.40
Euro	1	Rs.65.68

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.