MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	SKM STEELS LIMITED SKM CONSTRA (A DIVISION OF SKM STEELS LIMITED)
Registered Office :	30, C.P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.12.1994
Com. Reg. No.:	11-083403
Capital Investment / Paid-up Capital :	Rs.47.638 Millions
CIN No.: [Company Identification No.]	U27100MH1994PLC083403
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel Products.
No. of Employees :	Not Available

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 5300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	30, C.P. Tank Road, 2^nd Floor, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-40716600/40716666
Fax No.:	91-22-23805392/23805392
E-Mail :	sales@skmsteels.com sales.ss@skmsteels.com purchase.ss@skmsteels.com info@skmsteels.com
Website :	http://www.skmsteels.com
Branch Office:	3^rd Floor, Sandhurst Building, 545 SVP Road, Opera House, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-43432000
Fax No.:	91-22-23861782
E-Mail :	kalpesh@skmsteels.com

DIRECTORS

As on 29.09.2011

Name :

Mr. Kirtilal Moolchand Shah

Designation :

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	5/01/1983	5/01/1983	-	Active	NO
2	U65944MH1983PTC031087	SKM CAPITAL AND HOLDINGS PRIVATE LIMITED	Director	13/10/1983	13/10/1983	-	Active	NO
3	U70102MH1983PTC031098	SKM REALTY PRIVATE LIMITED	Director	13/10/1983	13/10/1983	-	Active	NO
4	U45200MH1983PTC031489	SHREE SEJAL CONSTRUCTION PVT LTD	Director	5/12/1983	5/12/1983	-	Active	NO
5	U24110MH1984PTC031790	SKM ENTERPRISES PRIVATE LIMITED	Director	9/01/1984	9/01/1984	-	Active	NO
6	U45202MH1985PTC035590	SKM CONSTRUCTIONS PRIVATE LIMITED	Director	12/03/1985	12/03/1985	-	Active	NO
7	U27100MH1994PLC083403	SKM STEELS LIMITED	Managing director	1/12/2010	1/12/1994	-	Active	NO
8	U17120MH1997PTC105599	SKM APPARELS PRIVATE LIMITED	Director	3/02/1997	3/02/1997	-	Active	NO
9	U27100MH1997PTC111184	SKM ALLOYS PRIVATE LIMITED	Director	9/10/1997	9/10/1997	-	Active	NO
10	U25200GJ1990PLC014554	HEAVY METAL AND TUBES LIMITED	Whole-time director	18/03/1999	18/03/1999	-	Active	NO
11	U45102MH2001PTC131232	SHREE PARUL DEVELOPERS PRIVATE LIMITED	Director	15/03/2001	15/03/2001	-	Active	NO
12	U51420MH1997PTC105245	SKM METAL PROCESSORS PRIVATE LIMITED	Director	26/11/2003	26/11/2003	-	Active	NO
13	U74999MH2003PTC143045	BKC DEVELOPERS PRIVATE LIMITED (CN)	Director	30/09/2006	8/04/2006	1/02/2010	Active	NO
14	U70100MP2008PTC020178	SUNSTAR INFRATECH PRIVATE LIMITED	Director	2/01/2008	2/01/2008	-	Active	NO
15	U65910GJ1995PLC028135	KHYATI FINCAP LIMITED	Director	25/02/2008	25/02/2008	-	Active	NO
16	U65993GJ2008PTC054125	HM FINANCIAL SERVICES PRIVATE LIMITED	Director	4/06/2008	4/06/2008	-	Active	NO
17	U67120MP1995PTC009168	SKM RAMDIN ULTRATECH PRIVATE LIMITED	Additional director	25/11/2010	25/11/2010	-	Active	NO

Name :

Mr. Pankaj Dahyalal Shah

Designation :

Whole Time Director

Address :

Flat No.161, 16^th Floor, Enterprise Apartment, Forjet Hill Road, Mumbai – 400 036, 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	1/08/1994	1/08/1994	27/03/2010	Active	NO
2	U27100MH1994PLC083403	SKM STEELS LIMITED	Whole-time director	1/08/2007	1/12/1994	-	Active	NO
3	U24110MH1984PTC031790	SKM ENTERPRISES PRIVATE LIMITED	Director	1/09/1999	1/09/1999	24/03/2010	Active	NO
4	U45102MH2001PTC131232	SHREE PARUL DEVELOPERS PRIVATE LIMITED	Director	15/03/2001	15/03/2001	30/03/2010	Active	NO
5	U28100MH1983PLC029050	SKM INDUSTRIES PRIVATE LIMITED	Director	16/02/2004	16/02/2004	25/03/2010	Active	NO
6	U51909MH2009PTC189603	MAITRI METALS PRIVATE LIMITED	Director	15/01/2009	15/01/2009	-	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	Date of cessation	Company Status	Defaulting status
1	U27100MH1994PLC083403	SKM STEELS LIMITED	Director	1/07/2000	1/07/2000	-	Active	NO
2	U28100MH1983PLC029050	SKM INDUSTRIES PRIVATE LIMITED	Director	1/08/2000	1/08/2000	-	Active	NO
3	U45202MH1985PTC035590	SKM CONSTRUCTIONS PRIVATE LIMITED	Director	1/08/2000	1/08/2000	-	Active	NO
4	U70102MH1983PTC031098	SKM REALTY PRIVATE LIMITED	Director	1/08/2000	1/08/2000	-	Active	NO
5	U65944MH1983PTC031087	SKM CAPITAL AND HOLDINGS PRIVATE LIMITED	Director	25/08/2001	25/08/2001	-	Active	NO
6	U24110MH1984PTC031790	SKM ENTERPRISES PRIVATE LIMITED	Director	31/10/2001	31/10/2001	-	Active	NO
7	U51420MH1997PTC105245	SKM METAL PROCESSORS PRIVATE LIMITED	Director	26/11/2003	26/11/2003	-	Active	NO
8	U70100MP2008PTC020178	SUNSTAR INFRATECH PRIVATE LIMITED	Director	2/01/2008	2/01/2008	-	Active	NO
9	U45102MH2001PTC131232	SHREE PARUL DEVELOPERS PRIVATE LIMITED	Director	31/01/2008	31/01/2008	-	Active	NO
10	U74999MH2008PTC185413	SHASWAT ENTERPRISES PRIVATE LIMITED	Director	4/08/2008	4/08/2008	-	Active	NO
11	U45400MH2010PTC198967	SHASWAT REALTORS PRIVATE LIMITED	Director	15/01/2010	15/01/2010	-	Active	NO
12	U67120MP1995PTC009168	SKM RAMDIN ULTRATECH PRIVATE LIMITED	Additional director	25/11/2010	25/11/2010	-	Active	NO
13	U45200MH1983PTC031489	SHREE SEJAL CONSTRUCTION PVT LTD	Director	30/04/2011	30/04/2011	-	Active	NO
14	U45200MP2007PTC019444	MAHIMA INFRASTRUCTURES PRIVATE LIMITED	Director	30/09/2011	5/05/2011	-	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	11/06/2001	11/06/2001	-	Active	NO
2	U70102MH1983PTC031098	SKM REALTY PRIVATE LIMITED	Director	16/07/2001	16/07/2001	-	Active	NO
3	U51420MH1997PTC105245	SKM METAL PROCESSORS PRIVATE LIMITED	Director	26/11/2003	26/11/2003	-	Active	NO
4	U45202MH1985PTC035590	SKM CONSTRUCTIONS PRIVATE LIMITED	Director	30/01/2004	30/01/2004	-	Active	NO
5	U27100MH1997PTC111184	SKM ALLOYS PRIVATE LIMITED	Director	15/03/2006	15/03/2006	-	Active	NO
6	U70102MH2007PTC169658	HARI KRUPA REALTY PRIVATE LIMITED	Director	5/04/2007	5/04/2007	-	Active	NO
7	U65944MH1983PTC031087	SKM CAPITAL AND HOLDINGS PRIVATE LIMITED	Director	28/01/2008	28/01/2008	-	Active	NO
8	U28100MH1983PLC029050	SKM INDUSTRIES PRIVATE LIMITED	Director	28/01/2008	28/01/2008	-	Active	NO
9	U45102MH2001PTC131232	SHREE PARUL DEVELOPERS PRIVATE LIMITED	Director	31/01/2008	31/01/2008	-	Active	NO
10	U65910GJ1995PLC028135	KHYATI FINCAP LIMITED	Director	21/04/2008	21/04/2008	-	Active	NO
11	U25200GJ1990PLC014554	HEAVY METAL AND TUBES LIMITED	Director	1/05/2008	1/05/2008	-	Active	NO
12	U45202MH2008PTC183432	SAK BUILDERS PRIVATE LIMITED	Director	11/06/2008	11/06/2008	-	Active	NO
13	U45205MH2008PTC183433	SAK INFRATECH DEVELOPERS PRIVATE LIMITED	Director	12/06/2008	12/06/2008	-	Active	NO
14	U72900GJ2010PTC059066	NUCLIONE SYSTEMS PRIVATE LIMITED	Director	4/01/2010	4/01/2010	28/01/2011	Active	NO
15	U45400MH2010PTC198967	SHASWAT REALTORS PRIVATE LIMITED	Director	15/01/2010	15/01/2010	-	Active	NO
16	U67120MP1995PTC009168	SKM RAMDIN ULTRATECH PRIVATE LIMITED	Additional director	25/11/2010	25/11/2010	-	Active	NO
17	U74999MH2008PTC185413	SHASWAT ENTERPRISES PRIVATE LIMITED	Additional director	22/11/2011	22/11/2011	-	Active	NO

Name :

Mr. Ram Anugrah 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	Date of cessation	Company Status	Defaulting status
1	U27100MH1994PLC083403	SKM STEELS LIMITED	Director	27/11/1995	27/11/1995	-	Active	NO
2	U25200GJ1990PLC014554	HEAVY METAL AND TUBES LIMITED	Director	17/08/2007	17/08/2007	-	Active	NO
3	L27101GJ1992PLC018101	HEERA ISPAT LIMITED	Additional director	25/05/2011	25/05/2011	-	Active	NO

Name :

Mr. Kalpesh Haribhai Chowdhary

Designation :

Director

Address :

Makharia House, 1^st Floor, 327, SVP Road, Mumbai – 400 002, Maharashtra, India

Date of Birth/Age :

06.11.1971

Date of Appointment :

29.09.2011

DIN No.:

00084800

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	29/09/2011	31/03/2004	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Shah Kirtilal Moolchand and Shah Veenaben Kirtilal	475400
Shah Amit Kirtilal and Shah Veenaben Kirtilal	474000
SKM Constructions Private Limited, India	400000
Shah Veenaben Kirtilal and Shah Kirtilal Moolchand	475000
Suryadeep Salt Refinery and Chemicals Work Limited, India	12000
Kailash Ficom Limited, India	18000
Zen Shaving Limited, India	4000
Tribhuvan Housing Limited, India	10000
Shah Kirtilal Moolchand HUF	468000
Shah Ruchita Amit and Shah Amit Kirtilal	402900
Shah Amit Kartiklal HUF	476000
Chowdhary Anju Kalpesh	378000
Shah Sejal Chirag and Shah Chirag Shantilal	365450
SKM Industries Private Limited, India	65000
SKM Capital 7 Holdings Private Limited, India	15000
Shree Parul Developers Private Limited, India	110000
Megha Bhavesh Shah	125000
Juvenile Capfin Private Limited, India	490000
Total	4763750

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	2.62
Bodies corporate	73.78
Directors or relatives of Directors	23.60
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Stainless Steel Products.
Products :	Products Description	ITC Code No.
	Stainless Steel Wire Rods	7221
	CR CA Coils/ Sheets	7209
	G P Sheet/ Coils	7210

PRODUCTION STATUS AS on 31.03.2010

Particulars	Unit	Installed Capacity
Stainless Steel Bright Bars	M. Tonnes	9000
Power	(Kw)	750

Particulars	Unit	Actual Production
Own and On Jobwork Basis:
Stainless Steel Bright Bars	M. Tonnes	1938.553
Stainless Steels Wires	M. Tonnes	0.000
Stainless Steel Rods/ Rounds	M. Tonnes	11252.040
Stainless Steel Scrap	M. Tonnes	312.586
Power	(‘000 Kwh)	1093.405

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Land Markerace Cource Circle, Alkapura, Baroda – 390015, Gujarat, India

· Bank of India – Lead Bank of BOI Consortium, Large Corporate Branch, Free Press Building, 9^th Floor, Free Press Journal Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

· Commonwealth Bank of Australia, Level 2, Hoechst House, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans taken for vehicles secured	2.931	0.196
Other debt secured	2837.846	1534.567
Total	2840.777	1534.763
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	0.000	34.000
Other debt unsecured	96.200	47.000
Total	96.200	81.000

Banking Relations :	--
Auditors :
Name :	R.M. Doshi and Company Chartered Accountants
Address :	307, Vaishali Apartments, 30/31, Parekh Street, Prarthana Samaj, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-67437416/ 17
Fax No.:	91-22-23824232
E-Mail :	rmd@mcdoshi.com
PAN.:	AABPD5830G
Related Party:	· Heavy Metal and Tubes Limited, India · Bharat Steel Yard · Maitri Metals Private Limited, India · Shree Steel Depot · SKM Enterprises Private Limited, India · SKM Industries Private Limited, India · SKM Metal Processors Private Limited, India · Khyati Fincap Private Limited, India · Suns tar Infratech Private Limited, India
Subsidiaries :	SKM Alloys Private Limited CIN No.: U27100MH1997PTC111184

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4763750	Equity Shares	Rs.10/- each	Rs.47.638 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		47.638	49.900	48.900
2] Share Application Money		0.000	20.000	45.348
3] Reserves & Surplus		1287.772	1147.262	928.243
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1335.410	1217.162	1022.491
LOAN FUNDS
1] Secured Loans		2840.777	1534.763	800.318
2] Unsecured Loans		96.200	81.000	76.330
TOTAL BORROWING		2936.977	1615.763	876.648
DEFERRED TAX LIABILITIES		9.603	11.557	12.116
TOTAL		4281.990	2844.482	1911.255
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		90.028	57.485	51.989
Capital work-in-progress		158.367	54.894	27.024
INVESTMENT		19.626	19.609	20.738
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1469.357	880.067	470.534
	Sundry Debtors	2722.011	1766.560	1195.878
	Cash & Bank Balances	68.274	179.173	173.420
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	200.169	137.734	138.871
Total Current Assets		4459.811	2963.534	1978.703
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	381.363	167.072	140.138
	Other Current Liabilities	14.433	48.623	18.391
	Provisions	50.046	35.345	8.670
Total Current Liabilities		445.842	251.040	167.199
Net Current Assets		4013.969	2712.494	1811.504
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4281.990	2844.482	1911.255

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	16701.680	9232.855	9454.387
		Other Income	122.908	109.142	44.836
		TOTAL (A)	16824.588	9341.997	9499.223
Less	EXPENSES
		Consumption material changes inventories Expenses	15673.717	8554.713
		Manufacturing service cost	251.717	116.092
		Employee related expenses	35.799	24.209
		Administrative Expenses	484.660	350.033
		TOTAL (B)	16445.893	9045.047	9287.141
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		378.695	296.950	212.082
Less	FINANCIAL EXPENSES (D)		154.336	86.079	175.794
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		224.359	210.871	36.288
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.152	5.289	5.717
	PROFIT BEFORE TAX (E-F) (G)		216.207	205.582	30.571
Less	TAX (I)		77.603	65.563	14.469
	PROFIT AFTER TAX (G-I) (J)		138.604	140.019	16.102
Add	PRIOR PERIOD ADJUSTMENTS		0.000	0.000	1.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		567.162	427.143	409.659
	BALANCE CARRIED TO THE B/S		705.766	567.162	427.143
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	360.328	169.245	432.021
		Compensation Earned	17.524	0.000	0.000
	TOTAL EARNINGS		377.852	169.245	432.021
	IMPORTS
		Trading Goods	2473.901	617.250	302.707
	TOTAL IMPORTS		2473.901	617.250	302.707
	Earnings Per Share (Rs.)		29.10	28.06	3.58

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.82	1.49	0.32
Net Profit Margin (PBT/Sales)	(%)	1.29	2.22	0.32
Return on Total Assets (PBT/Total Assets}	(%)	4.85	6.94	1.54
Return on Investment (ROI) (PBT/Networth)		0.16	0.17	0.03
Debt Equity Ratio (Total Liability/Networth)		0.33	0.20	0.10
Current Ratio (Current Asset/Current Liability)		10.00	11.80	11.83

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	Yes
10) Designation of contact person	No
11) Turnover of firm for last three years	No
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

BUSINESS RESULTS AND OPERATIONS

Recessionary trends continued to prevail in the US and the European markets, however the domestic demands surged 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. 16701.700 Millions against Rs. 9232.900 Millions which was almost double. Due to efficient management of funds and stringent control over cost, profits before depreciation and taxes increased to Rs.224.400 Millions against Rs.210.800 Millions for the last year resulting into a fourfold increase

PROSPECTS

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

FINANCE

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

BANKERS CHARGES REPORT AS PER REGISTRY

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 Email: info@skmsteels.com
This form is for	Creation of charge
Type of charge	Book debts
Particular of charge holder	Commonwealth Bank of Australia, Level 2, Hoechst House, Nariman Point, Mumbai – 400021, Maharashtra, India Email: priyanka.pincha@icicibank.com
Nature of instrument creating charge	Deed of hypothecation dated 25th March, 2012 to secure working capital limit of Rs 100.0 Million to secure company entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank, ranking pari passu with other participating banks.
Date of instrument Creating the charge	25.03.2012
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanctioned terms Terms of Repayment As per sanctioned terms Margin As per sanctioned terms Extent and Operation of the charge First pari passu charge by way of hypothecation of the company's entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Company entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and other movables including book-debts,and other current assets present and future

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Factory Buildings

· Other Buildings

· Plant and Machinery

· Electrical Installation

· Vehicles

· Furniture and Fixtures

· Office Equipments

· Air Conditioners

· Other Assets

AS PER WEBSITE DETAILS

COMPANY PROFILE

SKM Group commenced its operations in the year 1969 as dealers of ferrous and Non-ferrous Metals. Over the years, the group has diversified into various business activities group. Engaged in manufacturing, import and trading in diverse fields the groups corporate philosophy of bringing the word closer through distribution of quality products worldwide, is a dream turned to reality.  

With the rising economy and demand for product SKM further strengthened its horizons and a new division under the name and style of Subject was formed. Today the company has its own production facility in India which is functional round the clock in producing non-corrosive stainless steel products of the finest quality.

SKM steel has won a number of prestigious awards for exports excellence from EEPC (Engineering Export Promotion Council) India. It is also a government recognized EXPORT HOUSE with an ISO: 9001-2000 Certificate for industrial excellence to its credit.

With continuous R and D and a strong emphasis on quality, the highest award that SKM has earned within a short span is customer Satisfaction.’ As one of  the most reliable sources of quality products in the domestic and international market’s has a growing customer base in razil, Canada, Denmark, Dubai, France, Germany, Indonesia, I ran, Italy, Israel, Korea, Netherland, Poland, Taiwan, Thailand, Turkey, U.K., U.S.A., and Vietnam.

The group’s benchmark of supplying meticulous quality within the shortest possible lead time and at competitive prices holds good even today. A vision that dates back to 1969 is now a perpetual mission.

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.55.72
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

KVT

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.