MIRA INFORM REPORT

Report Date :

30.08.2014

IDENTIFICATION DETAILS

Name :	OSM PROJECTS PRIVATE LIMITED (w.e.f. 09.02.2012)
Formerly Known As :	OSM ENGINEERING PRIVATE LIMITED (w.e.f. 25.05.2011) OSM ENGINEERING PNEUMATIC CONVEYING PRIVATE LIMITED
Registered Office :	OSM House, Plot No-53, Pragati Vihar, Sector-59 Faridabad – 121004, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.09.2014
Com. Reg. No.:	05-035467
Capital Investment / Paid-up Capital :	Rs.33.512 Millions
CIN No.: [Company Identification No.]	U29150HR2004PTC035467
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of material handling systems.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There seems some dip in the company turnover and profit during 2013, borrowing recorded by the company are huge. Trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. R P Agarwal
Designation :	Not Divulged
Contact No.:	91-8373904083
Date :	27.08.2014

LOCATIONS

Registered Office :	OSM House, Plot No-53, Pragati Vihar, Sector-59 Faridabad – 121004, Haryana, India
Tel. No.:	91-129-4215100/42751184275107
Mobile No.:	91-8373904083 (Mr. R P Agarwal)
Fax No.:	91-129-4275151
E-Mail :	osmenginping@yahoo.com ssmangla7@gmail.com
Website :	www.osmindia.com
Corporate Office:	1/996, Shiv Colony Old, Faridabad, Haryana, India
Factory :	Sikri Industrial Area, Main Mathura Road, Faridabad, Haryana, India

DIRECTORS

As on 29.09.2012

Name :

Suman Kedar Nath Sharma

Designation :

Director

Address :

1930 Sector-8, Faridabad - 121006, Haryana, India

Date of Birth/Age :

11.06.1972

Date of Appointment :

08.09.2004

DIN No.:

01129107

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29150HR2004PTC035467	OSM PROJECTS PRIVATE LIMITED	Director	08/09/2004	08/09/2004	-	Active	NO
2	U74900HR2011PTC043908	OSM INFRA PRIVATE LIMITED	Director	20/09/2011	20/09/2011	-	Active	NO

Name :

Mr. Surender Sharma

Designation :

Director

Address :

1930 Sector-8, Faridabad - 121006, Haryana, India

Date of Birth/Age :

26.06.1974

Date of Appointment :

08.09.2004

DIN No.:

01013716

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29150HR2004PTC035467	OSM PROJECTS PRIVATE LIMITED	Director	08/09/2004	08/09/2004	-	Active	NO
2	U74900HR2011PTC043908	OSM INFRA PRIVATE LIMITED	Director	20/09/2011	20/09/2011	-	Active	NO

Name :

Mr. Jai Singh

Designation :

Director

Address :

Qtr No.M-5/F-8, Main Colony Lloyds Nagar, Bhugaon, Wardha - 442001, Maharashtra, India

Date of Birth/Age :

26.04.1976

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Surender Sharma	2448500
Suman Kedar Nath Sharma	663000
Ashok Sharma	34000
Tek Chand	16000
Ramesh Chand Sharma	20500
Omwati Devi	20500
Seema Sharma	8000
Osm India, India	130000
Dalel Singh	100
Gulshan Gautam	100
Jagir Singh	100
Jai Singh	100
Joginder Dagar	100
Kiran Sharma	100
Shanti Associates Limited, India	100
Surender Sharma HUF	10000
Total	3351200

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	99.50
Other top fifty shareholders	0.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of material handling systems.
Exports :
Products :	Material handling systems
Countries :	· Sri Lanka · Indonesia
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

25 (Approximately)

Bankers :

Indian Overseas Bank, SCO 63, Sector-46, Faridabad - 121001, Haryana, India

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Term Loan from banks	19.615	29.081
Term Loan from others	9.400	13.071
Short-term borrowings
Loan repayable on demand – from banks	99.000	71.123
Total	128.015	113.275

Banking Relations :
Auditors :
Name :	Shyam Sunder Mangla and Company Chartered Accountants
Address :	SCO-201, Sector-8, Faridabad – 121006, Haryana, India
Tel. No.:	91-129-2247275/2303601
E-Mail :	shyams@nda.vsnl.net.in
Website:	www.shyamsmangla.com
PAN N Income-tax PAN of auditor or auditor's firm :	AAPFS7654B
Enterprises over which key management personnel is able to exercise significant influence :	OSM India, India

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs. 45.0000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3351200	Equity Shares	Rs.10/- each	Rs. 33.512 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	33.512	33.512	18.607
(b) Reserves & Surplus	33.725	31.090	26.946
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	1.900
Total Shareholders’ Funds (1) + (2)	67.237	64.602	47.453
(3) Non-Current Liabilities
(a) long-term borrowings	46.619	64.208	33.709
(b) Deferred tax liabilities (Net)	0.378	0.446	0.304
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	46.997	64.654	34.013
(4) Current Liabilities
(a) Short term borrowings	99.000	71.123	27.303
(b) Trade payables	196.957	213.375	115.771
(c) Other current liabilities	79.381	90.546	40.106
(d) Short-term provisions	3.337	2.605	3.867
Total Current Liabilities (4)	378.675	377.649	187.047
TOTAL	492.909	506.905	268.513
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.787	40.841	38.905
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	20.321	2.476
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.250	0.250	0.250
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.015	0.015	0.000
(e) Other Non-current assets	5.970	4.428	9.525
Total Non-Current Assets	64.022	65.855	51.156
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	213.226	172.438	58.869
(c) Trade receivables	178.513	206.879	116.377
(d) Cash and cash equivalents	16.135	19.708	20.982
(e) Short-term loans and advances	7.891	18.809	7.127
(f) Other current assets	13.122	23.216	14.002
Total Current Assets	428.887	441.050	217.357
TOTAL	492.909	506.905	268.513

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
SALES
Income	430.082	552.970	544.604
Other Income
TOTAL	430.082	552.970	544.604
EXPENSES	400.490	530.358	518.515
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	29.592	22.612	26.089
FINANCIAL EXPENSES	16.467	9.923	1.443
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	13.125	12.689	24.646
DEPRECIATION/ AMORTISATION	5.781	3.430	2.946
PROFIT/ (LOSS) BEFORE TAX	7.344	9.259	21.700
TAX	4.708	5.115	7.626
PROFIT/ (LOSS) AFTER TAX	2.635	4.143	14.074
Earnings / (Loss) Per Share (Rs.)	0.77	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.61	0.75	2.58
Return on Total Assets (PBT/Total Assets}	(%)	1.49	1.90	8.16
Return on Investment (ROI) (PBT/Networth)		0.11	0.14	0.46
Debt Equity Ratio (Total Debt /Networth)		2.17	2.09	1.29
Current Ratio (Current Asset/Current Liability)		1.13	1.17	1.16

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	18.607	33.512	33.512
Reserves & Surplus	26.946	31.090	33.725
Share Application money pending allotment	1.900	0.000	0.000
Net worth	47.453	64.602	67.237
long-term borrowings	33.709	64.208	46.619
Short term borrowings	27.303	71.123	99.000
Total borrowings	61.012	135.331	145.619
Debt/Equity ratio	1.286	2.095	2.166

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	544.604	552.970	430.082
		1.536	(22.223)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	544.604	552.970	430.082
Profit	14.074	4.143	2.635
	2.58%	0.75%	0.61%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE: Registered office of the company has been shifted from W1/966, Shiv Colony, Faridabad– 121002, Haryana, India to the present address w.e.f. 01.08.2009

Unsecured Loan

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Loans and advances from related parties	33.308	36.708
Other current liabilities	-15.705	-14.652
Total	17.603	22.056

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10356383	18/04/2012	30,000,000.00	INDIAN OVERSEAS BANK	SCO 63, SECTOR-46, FARIDABAD, HARYANA - 121001, INDIA	B39868955
2	10272688	22/02/2011	20,000,000.00	INDIAN OVERSEAS BANK	SCO 63, SECOTOR-46, FARIDABAD, HARYANA - 121001, INDIA	B08304297
3	10173116	08/07/2011 *	214,500,000.00	INDIAN OVERSEAS BANK	SCO 63, SECTOR-46, FARIDABAD, HARYANA - 121001, INDIA	B17596727

* Date of charge modification

CONTINGENT LIABILITY

Particulars	31.03.2013
Gurantees
In respect to suppliers	40.066
Disputed tax amount
Petition filed with commissioner of income tax	47.061
Rectification of sales tax assessment order in process	1.045

FIXED ASSETS

· Land

· Building

· Furniture and Fixtures

· Computer

· Office Equipment

· Plant and Machinery

· Vehicles

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 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 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.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.