Mr. Sarang Bhand is the Promoter and Managing Director of Organic Recycling Systems Pvt. Ltd. with experience of 17 years. He brings on board his unique vision, management practices and global approach to the function, expansion, diversification and management of the organization with a Bachelor's degree in Marketing from Symbiosis University, Graduate Certificate of Management from Chifley Business School, SCPM - Stanford Certified Project Manager from Stanford Center for Professional Development. He has played vital role in securing technological collaborations, contracts/ projects for the company. He has also been involved in project implementation, project planning, securing funding, stakeholder management, monitoring projects & securing compliances for ongoing projects. Mr. Yashas Bhand is the Chief Executive Officer and Whole-time director of the Company. He is a M.Tech in (Biotechnology) with Post graduate diploma in Business law and entrepreneurship from The West Bengal National University of Juridical Sciences, Kolkata. He has completed Solid Waste Management Planning Certification from UNESCOs- IHE, Delft, Netherlands. As a seasoned professional he has been instrumental in carrying various in-house R&D activities. He drives a team for developing training modules, and implementing workshops for officials, consultants and other stakeholders in the waste management sector Since 2016, he has been also heading new Technology development team and Operation department of the Company. He played a key role in the development of the decentralization of the bio-gas technology. Mr. Amit Karia is an Independent Director of the Company. He is a member of the Institute of Company Secretaries of India (ICSI), New Delhi. He is a member of the Institute of Cost and Management Accountants of India (ICAI –Cost), Kolkatta, Qualified Masters in Laws (LLM), a merit holder and university topper for two out of three years in LLB examination. Author of several books on law with the first book being published by Bharat Law House, New Delhi. Has done researches in areas like human trafficking, labour laws, etc. Registered Insolvency Professional (IP) enrolled with the Indian Institute of Insolvency Professionals of ICAI (IIIPICAI). Enrolled in the independent directors databank regulated by Indian Institute of Corporate Affairs (IICA). Overall experience in legal and compliance areas of more than 11 years. Served as an executive director on the board of directors of an Indian company for more than 6 years. Currently serving as non-executive director of three Indian companies. Has also been an education mentor for professional courses like CA (Final).

Note: - There is no listed companies related to this company.

Review and Recommendation of Organic Recycling SME IPO by IZ team is 2/10

1. Receivables vs Revenue

The most striking concern here is that the company's receivables as of 31st March 2023 amount to INR 31 crores, which is significantly higher than its total revenue for the fiscal year 2022-2023 (INR 25 crores). In simpler terms, the company is owed more money than it actually made in a year. This points to a severe cash flow issue, which is exacerbated by the fact that these receivables have been outstanding for over a year.

2. Dependence on Government Payments

The issue of delayed payments from the government is a well-known risk in doing business with public sector entities. Cash flow problems can ripple through the operations, affecting not just day-to-day activities but also the ability to scale and invest in new technologies or processes. Municipal Corporations are responsible for developing action plans for MSW management and they need an adequate and recurrent cash flows for execution of MSW projects. Many Municipalities have been struggling to fund various solid waste management projects from their own revenue receipts.

3. Working Capital Needs

The nature of the solid waste management business usually requires significant working capital for operations, machinery, and labor. A mismatch between receivables and payables could lead to a liquidity crunch, making it difficult for the company to meet its short-term obligations.

4. Contingent Liabilities

The presence of a lot of contingent liabilities adds another layer of risk. These are potential liabilities that could turn into actual liabilities, depending on the outcome of a future event. For an investor, this means there's a potential for unforeseen cash outflows that could further strain the company's already weak financial position.

5. Investment Risk Assessment

Given the above factors, this company appears to be a high-risk investment. The delayed payments, high receivables, and contingent liabilities make it vulnerable to liquidity issues. Such financial instability could severely impact the company's ability to grow or even maintain its current operations.

Organic Recycling Systems Limited Office No. 1003, 10th Floor, The Affaires Plot No. 9, Sector-17, Sanpada, Navi Mumbai- 400705 Phone: 022-41702222 Email: cs@organicrecycling.co.in Website: https://organicrecycling.co.in/