Started as an Finance company,SKP Securities Limited has widen its services in other

financial activities other than lending of money. The company has been engaged in Stock
Broking,Merchant Banking & Corporate Finance,Portfolio Management & Investment
Advisory and other finance related services. The company has raised its Paid-up Equity Share
Capital from Rs.2.25 crores to Rs.3.00 crores through an IPO (which was oversubscribed by
12 times) of 750000 Equity Shares of Rs. 10 each at par during the year 1996. During the
year 1997,SKP Brokerage Limited(SBL) was amalgamated with SKP Securities and
consequent of this,700000 Equity Shares of the company which was held by SBL as
investment,cancelled and subsequently the Equity Capital of SKP Securities Limited has been
reduced to Rs.2.30 crores. In the year 1998.pursuant to amalgamation of SBL with the
company,Shareholders of SBL has been allotted 2750000 Equity Shares of Rs. 10 each at
par.Consequent of this allotment,company's Equity Paid up stood at Rs.5.05 crores. SKP,in
the year 2002, has started its operations as DP(Depository participant) of both NSDL and
CDSL.The company has also bagged the prestigious,Pru Chairman's Gold Award 2001 and
Hall of Fame Award 2002 from Prudential ICICI Mutual Fund and Standard Chartered
Mutual Fund respectively for being the top distributor of their mutual funds in the Eastern
Region.

Balance Sheet
(Rs. in Crores)
Standalone
|
Consolidated

Particulars Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

SOURCES OF FUNDS :            
Share Capital 5.62 5.62 5.62 5.05 5.05 5.05
Reserves Total 10.22 8.89 8.81 5.05 3.75 2.65
Total Shareholders Funds 15.84 14.51 14.43 10.10 8.80 7.70
Secured Loans 2.61 0.68 1.15 0.67 0.14 0.06
Unsecured Loans 0.00 0.00 0.00 0.00 0.00 0.00
Total Loan Funds 2.61 0.68 1.15 0.67 0.14 0.06
Total Liabilities 18.45 15.19 15.58 10.77 8.94 7.76
APPLICATION OF FUNDS :            
Loan / Non-Current Assets 0.00 0.00 0.00 0.00 0.00 0.00
Fixed Assets            
Gross Block 4.34 3.98 2.84 1.27 1.44 1.11
Less: Accumulated Depreciation 1.50 0.94 0.47 0.26 0.31 0.30
Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00 NA
Net Block 2.84 3.04 2.37 1.01 1.13 NA
Lease Adjustment 0.00 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress 0.00 0.00 0.00 0.00 0.00 0.00
Investments 1.00 0.74 0.49 0.29 0.29 0.62
Current Assets,Loans & Advances            
Inventories 0.00 0.00 0.00 0.00 0.00 0.00
Sundry Debtors 0.60 2.04 1.71 0.22 0.75 0.17
Cash and Bank Balance 13.04 9.28 10.01 7.75 5.38 4.30
Loans and Advances 7.59 7.86 10.03 6.90 6.97 4.30
Total Current Assets 21.23 19.18 21.75 14.87 13.10 8.77
Less: Current Liab. & Provisions            
Current Liabilities 3.63 6.46 6.87 2.86 2.69 0.52
Provisions 2.68 1.19 1.97 2.49 2.81 1.85
Total Current Liabilites & Provisions 6.31 7.65 8.84 5.35 5.50 2.37
Net Current Assets 14.92 11.53 12.91 9.52 7.60 6.40
Miscellaneous Expenses not written off 0.00 0.00 0.01 0.01 0.02 0.00
Deferred Tax Assets 0.00 0.00 0.00 0.05 0.00 0.00
 Deferred Tax Liability 0.31 0.12 0.20 0.11 0.10 0.07
Net Deferred Tax -0.31 -0.12 -0.20 -0.06 -0.10 -0.07
Total Assets 18.45 15.19 15.58 10.77 8.94 7.76
Contingent Liability 3.35 2.60 3.35 3.35 2.35 1.75

The Directors have pleasure in presenting the Twentieth Annual Report

and Audited Accounts of SKP Securities Ltd. (SKP) for the year ended
March 31, 2010.

Financial Highlights

Financial Year

Particulars (in Rs Lacs)

2009-2010 2008-2009

Total Income 1478.88 978.04

Total Expenditure 1114.64 919.78

Operational Profit 364.24 58.26

Depreciation 63.91 53.49

Profit Before Tax 300.33 4.77

Provision for Tax

(including Deferred Tax Liability) 102.02 (3.97)

Profit After Tax 198.3T 8.74

Appropriations

Proposed Dividend 56.15 0.00

Dividend Distribution Tax 9.54 0.00

Transferred to General Reserve 40.00 0.00

Laming Per Share (Rs.) 3.53 0.16

Net Worth 1583.72 1450.70

Dividend

Your Directors take pleasure in recommending payment of a dividend of

10 % (Re. 1 per share) for the year 2009- 10, subject to the approval
of shareholders.

Business Performance

From the confidence shaking sharp fall and lows of previous year,
Indian Capital Markets made a handsome recovery during the year,
catching almost everyone off guard. Memories of painful losses in the
recent past were fresh, making investors and traders generally remain
cautious during the year, resulting in low volumes, quite
uncharacteristic of booming markets. Structural changes made in the
mutual funds industry during the year were game changers for the mutual
funds advisory and distribution business, necessitating a difficult to
implement new business model.

In this backdrop, after a nightmarish previous year (2008-2009), SKP

has done reasonably well during 2009-2010. The reverse gear of
downsizing of operations applied in the previous year, were changed to
neutral in July 2009, with cost rationalisation efforts continuing. By
January 2010, forward gear was applied to resume SKPs growth
initiatives, keeping an eye on profitability for shareholders interest.

Income and profitability across almost all verticals recovered. Size of

broking business, encompassing equities, derivatives, currency futures
and commodities futures (through subsidiary company viz. SKP
Commodities Ltd), improved to about 19000 clients and over 13000 demat
account holders being served from over 300 business outlets. Our
equity research prowess and IT systems were enhanced to serve the
clients better. Assets Under Management in mutual funds continues to be
around Rs.1000 Crores, enlarging our investor base to almost 200000
investor accounts. We were also engaged in the distribution of private
equity funds, bonds, fixed deposits, etc.

Future Outlook

A rising Indian economy, leaving higher investible surplus in the hands

of individuals and low penetration of service providers, will continue
to create good business opportunities for companies like SKP and we are
gearing well to avail such opportunities, inspite of severe
competition. SKP is back in growth mode albeit cautiously across
products, value addition to clients, and geographies with suitable
changes being made in product delivery and business models. Required
investments will continue to be made in human resources, information
technology and systems for more efficient business processes and
superior client servicing. Special efforts will be made for brand
development, marketing and communications to support all our business
verticals, although this could have a negative impact on profitability
in the short run. We are fully geared up for availing all growth
opportunities - organic or inorganic.

Corporate Governance

Your Company has always striven to maintain the highest standards of

Corporate Governance. All the stipulations set out in the listing
agreement have been adhered to by your Directors. A Report on Corporate
Governance is attached to this report as per statutory requirements. A
Certificate from the Auditors of the Company M/s. U.S. Agarwal &
Associates, confirming the compliance of conditions of Corporate
Governance is annexed to this Report.

Auditors Report

All the items on which the Auditors have commented in their report are
self- explanatory.

Directorate

In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the company, Mr. Kishore Bhimani, Director
of the company, retires by rotation at the ensuing Annual General
Meeting and is eligible for reappointment.

Listings

The equity shares of the company are listed on The Bombay Stock
Exchange Ltd. The companys pending request for voluntary de-listing at
Calcutta Stock Exchange (CSE) has finally been approved by CSE and the
companys shares are no longer listed on CSE.

Auditors

The Auditors, M/s U S Agarwal & Associates, Chartered Accountants,

retire and being eligible, offer themselves for re-appointment as the
statutory auditors of the Company pursuant to Section 224 of the
Companies Act, 1956.

Fixed Deposits
Your Company did not accept any fixed deposits u/s 58A of the Companies
Act 1956, during the year.

Conservation of Energy, Technology Absorption and Foreign Exchange

Earning/Outgo

Your Company not being a Manufacturing Company, the provisions relating

to measures for conservation of energy and reduction of energy
consumptions are not applicable. No comment is being made on technology
absorption considering the nature of activities undertaken by your
Company during the period under review. Expenditure incurred in
Foreign Currency during the year Rs.63431.00

Information under section 217(2A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees) Rules, 1975

As required under the provisions of Section 217(2A) of the Companies

Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975, as amended, the names and other particulars of employees are as
under:

Name Designation Qualification Age Joining

Date

Naresh Managing B Com 47 Since

Pachisia Director CFP Incorporation

Rajesh Managing B Com 44 Since

Pachisia Director CFP Incorporation

Name Experience Gross Previous

(Years) Remuneration Employment
(R.S)

Naresh
Pachisia 28 1,950,000 -

Rajesh
Pachisia 26 1,950,000 -

Directors Responsibility Statement

In accordance with the Companies (Amendment) Act, 2000, the Directors
state that:

i. in the preparation of annual accounts, all applicable accounting

standards have been followed with proper explanations relating to
material departures.

ii. the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as on March 31, 2010 and of the profit of the Company
for the accounting year ended on that day.

iii. the directors had taken proper and sufficient care for maintenance
of adequate accounting records in accordance with the provision of the
Act so as to safeguard the assets of the Company and for preventing and
detecting fraud and other irregularities;

iv. the directors have approved the annual accounts on a going concern
basis.

Acknowledgement

The Board expresses its deep gratitude and thanks to the clients,
business associates, principals, bankers, regulators, exchanges,
depositories, and shareholders for their valuable contribution towards
the progress of the Company. Your Directors particularly wish to place
on record their sincere appreciation of the best efforts put in by the
employees at all levels, but for which, the Company could not have
achieved what it did during the year under review.

Registered Office: For and on behalf of the Board

Chatterjee International
Centre, Level 21

33A, Jawahar Lai Nehru Road Naresh Pachisia

Kolkata 700071, India Managing Director

Dated: April 23, 2010

Management Discussions
Industry Trends & Development
Be it stock broking, mutual fund distribution or depository services, all the activities that
your company is engaged in have huge growth opportunities due to existing low
penetration levels, but are facing tremendous competitive pressures and increasing
regulatory compliances. With the increasing role of technology, there is a paradigm shift
in the running of these businesses. Your company is gearing up well to face all such
 developments by increasing its reach across geographical areas and client segments,
ramping up its infrastructure and technological, financial and human resources.
Opportunities & Threats
Your company's philosophy of providing professional, value-added, comprehensive and
integrated broking and wealth management solutions across equities, derivatives,
currencies, depository services, mutual funds and insurance advisory, to a cross-segment
of society across the Eastern Region and some other parts of the country, is fast becoming
a positive differentiating factor vis-a-vis erstwhile competition. These could be treated as
great opportunities for the company. The rise of banks and very large broking houses with
huge financial muscle power in this segment, some of them having been promoted/co-
promoted by industrial conglomerates/global financial powerhouses, pose a threat to the
company.
Business Review/ Segment wise Performance
In spite of such competitive pressures, your company has done satisfactorily well to
remain above break even levels inspite of huge slowdown in income due to its focus on
costs and diversified activities within the broad core business of the company. It does not
have any segments/divisions.
Management of Risks
The T+2 Rolling Settlement System in the Indian Capital Markets induces safety and your
company also has strict margin norms and other risk management policies. Pursuant to the
steep fall witnessed in the markets in January 2008 and then in October 2008. when all
risk management measures failed to some extent, some amounts have become over due
from clients as reflected under sundry debtors. Although a majority portion of this has
already been received at the time of compilation of this report, more is under recovery
mode. The conscious overall reduction to zero levels made in the company's investment
and trading exposure in the capital market, and tendency to park surplus liquidity only in
debt/liquid mutual funds, has completely eliminated the market risk in the company's
balance sheet. The business models and policies are being re-aligned to make the company
withstand and grow within the highly competitive environment. A comprehensive risk
evaluation methodology and processes for early identification and mitigation of all kinds
of risks being in place, except for unforeseen circumstances and marginal exposure to
financial risk in the retail capital markets division, your company is quite a risk-free
business entity.
Internal Control Systems and their adequacy
The scope of work for internal auditors addresses issues related to internal control systems, particularly those related to
regulatory compliance. Pre-audit and post-audit checks and reviews ensure that audit observations are acted upon. The
Audit Committee of the Board of Directors reviews the Internal Audit Reports and the adequacy of internal controls.
Financial Performance
A snapshot of financial performance is furnished in the Directors' Report. The economic slowdown and complete
meltdown in capital markets has brought down the income of the company for the first time in seven years. Since the
company was in a growth mode prior to that, implying higher costs as explained in the previous years' report, it took a
while to bring down costs. Substantial investments made in technology led to substantially higher depreciation. This
resulted in profits crash in to negligible levels.
Future Outlook
With hopes of economic revival in the near future and the indicative rise in the capital markets in the recent past, we can
expect business to improve. After a phase of consolidation, the company may get back to its growth path in spite of the
competitive environment. Substantial investments are continuing to be made in technology for this purpose. Conscious
efforts are being made to keep the expenses under check so that resources could be deployed for strategic growth.
From herein onwards, the company can only look at better times.
Human Resource Management
Employees are vital to SKP. We have created a favorable work environment that encourages innovation and
meritocracy. We have also set up a scalable recruitment and human resource management process, which enables us
to attract and retain high caliber employees. No material development has taken place on the Human
Resources/Industrial Relations front during the year, except for the consciously reduced head count.

Annual Results
View Past Annual Results

Standalone
|
Consolidated

Mar-10 Mar-09 Mar-08

Particulars
(Rs.Cr)  (Rs.Cr)  (Rs.Cr) 

Gross Sales  14 10 15

Other Income   1 0 0

Total Income  15 10 15

Total Expenditure   11 9 11

PBIDT  4 1 4

Interest   0 0 0

PBDT  4 1 4

Depreciation  1 1 0

Tax  1 0 2

Deferred Tax  0 0 0

Reported Profit After Tax  2 0 2

Extra-ordinary Items   0 0 0

Adjusted Profit After Extra-ordinary item  2 0 2

       

EPS (Unit Curr.)  3.5 0.2 4.4

EPS (Adj) (Unit Curr.)  3.5 0.2 4.4

Calculated EPS (Unit Curr.)  3.5 0.2 4.0

Calculated EPS (Adj) (Unit Curr.)  3.5 0.2 4.0

Calculated EPS (Ann.) (Unit Curr.)  3.5 0.2 4.0

Calculated EPS (Adj) (Ann.) (Unit Curr.)  3.5 0.2 4.0

Book Value (Unit Curr.)  0.0 0.0 0.0

Dividend (%)  10.0 0.0 12.5

Equity  6 6 6

Reserve & Surplus  10.2 8.9 8.8

Face Value  10.0 10.0 10.0

       

Non-Promoter Holding Shares  1,405,300 1,405,300 1,405,300

Non-Promoter Holding (%)  25.03 25.03 25.03

       

PBIDTM(%)  27.22 7.04 27.62

PBDTM(%)  25.67 6.00 26.12

PATM(%)  13.96 0.93 14.79