OREANDA-NEWS. The general shareholder meeting of System Capital Management will take place on 21 April 2009 in Donetsk, reported the press-centre of SCM.

The agenda contains a number of issues including approval of financial and economic performance and financial reports of the Company for 2008 as well as distribution of the profit generated in 2008.

According to SCM's financial statements (not consolidated, without financial figures of the company's of SCM Group), the net profit of the company in 2008 made UAH 184.5m. This is lower than the profit of 2007, which made UAH 19bn. The difference between the net profits in 2007 and 2008 is down to extensive structural changes made by the Company in 2007 and handover of corporate rights of SCM Group enterprises to European subsidiary holdings (100% of which belongs to SCM Group) according to appropriate industries.

According to the current legislation, the transfer of corporate rights was carried out at market prices (approx. US5bn at the moment of transactions), while the balance-sheet reflected the prime cost of these assets. This difference actually was the net profit of SCM in 2007. By 2008 SCM had practically completed restructuring and didn't carry out such transactions during the year.

"In 2008, we were focused on improving efficiency of our businesses, going out of the investments, which didn't meet the Group's development strategy, as well as on using the market opportunities to create the reserve for stability. Also, we completed creation of the ownership structure of SCM Group clear and transparent for Ukrainian and international audiences", said Oleg Popov, Chief Executive Officer of SCM. “In addition, in 2008 we kept improving the quality of corporate governance. Now the model of SCM corporate governance both complies with the best global standards and is absolutely innovative for Ukraine”.

Also, according to the reports, in 2008 the volume of SCM long-term liabilities was significantly reduced -approximately by UAH 1 billion.

"Now, at these hard financial and economic times we are focused on setting proper priorities and using available resources efficiently. One of our key priorities is to ensure SCM’s liquidity and deliver our credit obligations. We perform our obligations at due time and in full volume, and we are ready to keep to this approach in the future.

As the result, SCM has an impeccable reputation of a borrower and its loan parameters remained unchanged. Moreover, the banks do not see any reasons to review them in the future", added Mr. Popov.