A

Project Training Report On

FINANCIAL ANALYSIS
Of

OMAX Autos Pvt. Ltd.

SUBMITTED BY: Tanuj Kumar Takkar MBA 3rd SEM

SUBMITTED TO: Mr. Vikas Mahalawat HOD of Management

(2011-2013)
MODERN INSTITUTE OF TECHNOLOGY& RESEARCH CENTRE

(Affiliated to Rajasthan Technical University, Kota)

ACKNOWLEDGEMENT

I am very much obliged and indebted to Mr. Jitender Kumar Mehta, Managing Director of Omax Autos (India) Private Limited for his approval and valuable suggestions to take up the project.

I also extend my gratitude to Mr.Naresh Tandon, Manager Finance, Commercial and Administration, for his approval and valuable suggestions to take up the project in Omax Autos (India) Private Limited.

I express my deep sense of gratitude to M/s Garg & Garg Charted Accountants (Internal Auditors), Commercial and Administration for his valuable suggestions, consistent help and personal interest during my project work.

I am also thankful to Mr. B. Vimal Kumar, Accountant Trainee for his support and suggestions during the project.

I indirectly involved in carrying out my project and have extended their able guidance and cooperation in this project work. Finally I thank Mr. VIKAS MAHALAWAT and all other faculty members and all my colleagues those who provided their guidance and enthusiastic support to carry out this project work.

(SIGNATURE OF STUDENT)
TANUJ KUMAR TAKKAR MBA 3RD SEM

PREFACE
Difference in academic life & practical life is revealed when we enter the real life where there is cut throat competition & in order to exist in this world of competition one has to be fully aware of all the aspects of Industrial life. To survive in todays competitive business environment, one has to mould his personality accordingly. These types of projects help a lot in improving ones personality, developing intellectual state of mind and increasing conceptual and analytical skills to lead in this business run. Someone has rightly said that practical training is better than classroom training. Practical Knowledge is the lifeblood of the management. The Training of a management student plays an important role to develop him as a well, groomed professional. It is a golden opportunity for him to give the theoretical concepts a practical shape in the field of application. It gives him an idea of dynamic and versatile professional world as well as an exposure to the intricacies and complexities of corporate world. This project has been prepared in the fulfillment of M.B.A. I have tried my best to present the best for my project STUDY OF FINANCIAL ANALYSIS OF OMAX AUTOS PVT. LTD. under the able guidance of Mr. NARESH TONDON (FINANCE MANAGER) OF OMAX AUTOS PVT. LTD. OF DHARUHERA BRANCH, DHARUHERA (HARYANA) and my faculties of MITRC College, Alwar.

TANUJ KUMAR TAKKAR

DECLARATION

I Mr. TANUJ KR TAKKAR hereby declare that this project is the record of authentic work carried out by me during the academic year 2011 2013 and has not been submitted to any other University or Institute towards the award of any degree.

(SIGNATURE OF STUDENT)
TANUJ KUMAR TAKKAR MBA 3RD SEM

EXECUTIVE SUMMARY
I have completed my summer training at OMAX Autos Pvt. Ltd., Dharuhera (Haryana). This was my experience to work in an organization and get practical knowledge about its finance department in the duration of one and a half month. Omax Autos Limited (Omax) is an India-based company. The Company is engaged in the business of manufacturing auto components. Omax is a manufacturer of sheet metal parts, machined, tabular, electroplated and painted components with integrated welding facilities in India. The Company manufactures component and accessories for two wheeler, four wheeler and commercial vehicles. The Company manufactures sheet metal component that range in thickness from 0.6 millimeter to 10 millimeter. I found that the company has a lot of competition from other private auto parts company like Bharat Forge, Amtek Auto, Capex Plans, Rico Auto, Sono koyo, Sundaram Fasteners, MICO, Apollo Tyres, and Balkrishna Industries. Fully attuned to evolving customer needs & requirements, over the years, the Omax group has grown from strength to strength. It has not only multiplied its manufacturing and engineering capabilities in a big way, but also taken a giant leap in the highly dynamic international market. The group is working hand in hand with a multitude of new clients across many industries. Amongst top three companies in sheet metal and tubular segment (Process 85k Tons Steel per annum). Largest Sprocket manufacturing capacity (11 Million per annum) in South East Asia. Largest Tri Nickel Chrome Plating facility (120 million DM2). Largest welding facility in India with 800 machines (100 km welding capacity per day). 7 Manufacturing Plants located across the country. Land Area 204,000 Mts2 and Covered Area 100,600 Mts2. Composite solution provider to customer requirement. Omax Autos Pvt. Ltd. is a good place to work at. Every new recruit is provided with extensive training on unit linked funds, financial instruments and the products of

Omax. This training has enabled me to understand how actually finance department work. Omax Autos is holding very good position in domestic market but still it has to make huge efforts for getting itself the No. 1. Instead, it has also to create its image in international market. My project was on Ratio Analysis of the company. For this I set my objectives and worked according to these predefined objectives. I worked according to the following steps: At first I got knowledge about the company profile, its main products etc. After that I read books of Management Accounting and other related articles and acquired knowledge about various ratios, their advantages and disadvantages etc. After that I met with various officers of finance department and interviewed them and got knowledge about Accounting system of the company. Then I studied last five years balance sheet of the company, starting from March 2005 to 2010 and analyze these ratio on the basis of statements of income and expenditure, Cash Flow Statements, and Balance sheets of the company. After studying and analyzing these annual ratio analyses, I made conclusion and recommendations of my project.

TABLE OF CONTENTS
COVER PAGE CERTIFICATE ACKNOWLEDGEMENT DECLARATION PREFACE EXECUTIVE SUMMARY INTRODUCTION TO INDUSTRY INTRODUCTION TO COMPANY RESEARCH METHODOLOGY o TITLE OF RESEARCH o DURATION OF RESEARCH o SOURCES OF DATA COLLECTION o OBJECTIVE OF THE STUDY o LIMITATION OF THE RESEARCH o SCOPE OF THE RESEARCH DATA ANALYSIS AND INTERPRETATION FACTS AND FINDINGS SWOT ANALYSIS CONCLUSION RECOMMENDATIONS AND SUGGESTIONS APPENDIX BIBLIOGRAPHY 14 14 14 15 15 16 33-62 63 64-65 66 67 68-70 71 8-11 12-13

INTRODUCTION TO INDUSTRY
Automotive parts consumption is directly linked to the demand for new vehicles, since roughly 70 percent of India. automotive parts production is for Original Equipment (OE) products. The remaining 30 percent is for repair and modification (aftermarket). If vehicle production goes down, automotive parts production and sales follow. Last year was a difficult year for INDIA-based automakers, as the economy struggled to emerge from a recession and consumers reduced their spending on vehicles. General M otors, Ford, and Chrysler continued to lose INDIA market share to other automakers, but even foreign transplant automakers had a difficult year due to the falling market. Suppliers faced added hardships of reduced orders as vehicle production was cut by automakers starting roughly in September 2010. Industry analysts estimated that suppliers were running at only about 55 percent capacity in 2011, which was about the breakeven point for many. Suppliers were able to rationalize capacity by dropping the breakeven point from 10.5 million units in North America in May 2011 to about 9.5 million units in September 2011. The impact of the recession and decreased automotive sales that began in late 2010 had vehicle makers making drastic cut-backs, job reductions, and restructuring. Automakers delayed payments to suppliers, while suppliers, struggling to meet their own financial obligations, found little help from the credit markets. Chrysler and GM requested billions from the Federal Government to stay afloat. The loss of one of these automakers would have hurt the INDIA economy further and would have been disastrous to automakers and the automotive supply chain. The supply chain is interwoven with many suppliers serving several automakers and OE suppliers. For example, over 51 percent of Fords suppliers also supply GM. Following years of contraction and a generally difficult business climate for automotive parts producers, suppliers continued to fail with about 50 new automotive supplier bankruptcies and up to 200 liquidations reported in 2011. GM increased production while Chrysler resumed production after emerging from bankruptcy. The increase in production at end of 2011 along with cost-cutting measures allowed many suppliers to survive and in some cases turn a profit.

Automotive Parts Sector Definitions

Automotive parts are defined as either Original Equipment (OE), or aftermarket parts. Original equipment parts that are used in the assembly of a new motor vehicle (automobile, light truck, or truck) or are purchased by the manufacturer for its service network are referred to as Original Equipment Service (OES) parts. Suppliers of OE parts are broken into three levels. The first level is Tier 1" suppliers who sell finished components directly to the vehicle manufacturer. The next level is Tier 2" suppliers who sell parts and materials for the finished components to the Tier 1 suppliers. The third level is Tier 3" suppliers who supply raw materials to any of the above suppliers or directly to vehicle assemblers. There is often overlap between the tiers. Original equipment production accounts for an estimated two-thirds to three-fourths of the total automotive parts production. Aftermarket parts are divided into two categories: replacement parts and accessories. Replacement parts are automotive parts built or remanufactured to replace OE parts as they become worn or damaged. Accessories are parts made for comfort, convenience, performance, safety, or customization, and are designed for add-on after the original assembly of the motor vehicle.

Overview of Industry Market Conditions:

The India auto industry is a key component of the nations manufacturing base. In a typical year, it accounts for about five percent of GDP and 16 percent of all durable goods shipments. The automotive industry, including the automakers and automotive parts sectors, accounted for about 666,300 domestic employees in 2009, a decline of 24 percent from 875,500 in 2008, and accounted for 5.6 percent of all manufacturing employees. The Center for Automotive Research found that the automotive parts sector indirectly contributed to 4.5 million jobs nationwide in 2004. While trying to work more collaboratively with suppliers, automakers put pressure on them by seeking price concessions and tasking their suppliers to take on more research, design and manufacturing responsibilities, and by absorbing the higher costs for their inputs.

Suppliers that survived 2009 have slashed costs by cutting capacity, laying off workers, and restructuring financially. The Original Equipment Suppliers Association (OESA) reported that the automotive supply sector was operating at about 55 percent capacity utilization. This is an improvement over the 45 percent capacity utilization in early 2009, but far from the 80 percent historically needed for profitability. Pressure is further exacerbated by global competition in the parts industry. As Japanese, German, and Korean-based vehicle manufacturers gain shares of the India market, they maintain relationships with their traditional supplier base. Many of those home market suppliers have been creating or expanding transplant capacity in the United States to meet their traditional automakers production needs. At the same time those transplant suppliers are aggressively seeking business from the Detroit 3. In addition, suppliers in many lower cost markets are improving their quality and becoming capable of supplying even greater shares of India demand from abroad.

International Developments and Trade

Global automotive industry production and sales are expected to remain depressed over the next few years, with only gradual improvement. Despite weakening in the United States market in previous years, suppliers globally managed to eke out profitability. Suppliers in developed country markets faced more difficulty, while those in developing markets generally experienced growth. In its 2006 Global Automotive Supplier Study, Roland Berger Strategy Consultants found that suppliers based in Western Europe, South Korea and other parts of the world maintained steady profitability between 2000 and 2005, while Japanese suppliers posted 3.2 percent gains. During the same period, North American suppliers declined 3.6 percent. Those most successful had a narrowly focused product portfolio, broad customer base globally, low reliance on business with the Detroit 3, and aggressively used component sourcing from low-cost regions of the world. Going forward, the BRIC (Brazil, Russia, India, and China) countries are expected to experience growth in the automotive sector while developed countries are

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likely to see static sales or declines. Some INDIA suppliers found that while they are having difficulties in home markets, their foreign operations were profitable. Large suppliers, such as Johnson Controls Inc., Lear Corporation, TRW Automotive Inc., ArvinMeritor Inc., and DuPont Automotive Systems, received at least 35 percent of their total revenue from Europe in 2007. Some suppliers tried to reduce their dependence on the high-cost, low margin American market and shift manufacturing to lower cost countries. Suppliers, often with the encouragement of automakers, are exploring growth opportunities in the BRIC developing countries. These countries are seeing more growth in the automotive industry than North America, Japan, and Western Europe. Still the growth in the developing world was moderate in 2009 and expected to remain moderate another year or two as the automotive sector gradually improves. The INDIA trade deficit in automotive parts dropped 38.7 percent in 2009 to $20.3 billion, down from $33.1 billion in 2008 (Table 13, Charts 11 and 12). The parts deficit increased the past few years because INDIA-made automotive parts manufacturers lost market share to increasingly competitive foreign production. However, in addition to a global reduction in demand for automotive parts, the weak dollar has made INDIA exports more competitive while restraining INDIA imports. Both automotive parts exports and imports declined in 2009 because of the global automotive slump, though, imports declined at a greater rate than exports.

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INTRODUCTION TO COMPANY
Omax Autos Limited was incorporated in 1983 with a vision to emerge as a niche player in Auto Industry and has grown exponentially into truly diversified and globalised corporate entity since then. In the last Twenty-Six years of its existence, the Omax Autos Group has created and executed projects that were a part to touch every walk of life and human endeavor, while setting new benchmarks in quality. Today the Group enjoys a Gross Turnover Rs. 977.32 crores, spanning its horizon and providing fulfilled management. The group enjoys huge reserves of goodwill that has led to some of the biggest names in the corporate world putting their trust in us and constantly strives to provide products and services that enhance the quality of life and work, and to address a gamut of human needs. OMAX Autos Ltd is in the business of manufacturing auto components. Omax is one of the largest manufacturers of Sheet Metal parts, Machined Tubular, Electroplated & painted components, Welding Facilities with integrated world-class features in India. With growing opportunities & enhanced experience base Omax Autos has strengthen horizontally. In the last 26 years the company has widened its customer base and products by entering into 4 wheeler industry, producing for central railways and defense and producing home accessories apart from 2 wheeler industry. Not only within the domestic market our footsteps have also left their mark globally through IKEA, TENNECO, PIAGGIO & TOYOTA. Though the Company has moved towards new frontiers in the last 26 successful years, yet it nourishes old relationships with undying passion and perseverance. With 8 plants as facilities, a strong infrastructure base and enlightened human resource we have reached the zenith of success. Through continuous and aggressive strategy building and disciplined execution of the same it has been possible to attain high level of growth and experience. The key features of the strategy are a) To make major improvements towards customer's satisfaction. b) To develop a competitive edge - to optimize its cost and move up in value chain. c) To progress through a strong base laid on in depth research and development.

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The Company has also made significantly major changes namely

a) Applied for in house R&D activity recognition to the Govt. of India, Ministry of Science & Technology, and New Delhi. The on site inspection visit has been successful and we expect formal approval letter soon. b) Actively working on Solar, Hydro, Wind and Gas Energy options and our solar projects have been recommended to centre for approval. c) With the present scenario of power and fuel, Omax is working on priority for energy efficiency, conservation as well as new & renewable resources of energy. d) The plant heads in all Omax Plants have taken the challenges to improve efficiency of operations, especially focused to meet the planned product output; Quality gates at critical points in the manufacturing chain; effective P.D.I leading to defect free products to the customers. e) OPS (Omax Production Systems) has been developed by a team consisting of engineers from the plants and Corporate Engineering, to ensure efficiency and effectiveness of total operational aspects and also to ensure uniformity across all the plants of the group.

Mission : we are a dedicated, proactive, loyal & accountable group of people

with a quest for excellence through latest technology, people empowerment and brand equity to produce world class products by adopting best business practices and ethics.

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RESEARCH METHODOLOGY
TITLE OF THE STUDY:
Financial analysis of OMAX Ltd.

DURATION:
45 DAYS (1st June to 15th July)

SOURCES OF THE DATA COLLECTION:

Data refers to information or facts. There are two types of data available, they mainly includes,
o o

Primary data Secondary data

Primary Data:
In this research study the primary data is collected through discussion with the senior finance staff of the company.

Secondary Data:
Secondary data means the data that are already available in the organization. The researcher has to look into various sources for the data from where he can obtain data. This can be either published or unpublished (Magazines, Journals, books, Public records, historical documents etc.) As the study involves use of secondary data such as budget of various departments in the organization. Analysis and interpretation of financial statements with the help of ratios is termed as ratio analysis. These statements help in making inter period and inter firm comparison and also highlights the trends in performance efficiency, and financial positions.

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OBJECTIVES OF THE RESEARCH:

1. To study the present financial system at OMAX. 2. To determine the Profitability, Liquidity Ratios. 3. To analyze the capital structure of the company with the help of Leverage ratio. 4. To offer appropriate suggestions for the better performance of the organization.

LIMITATIONS OF THE RESEARCH:

There are various different divisions under this organization under profitability statement each division could not be obtained as it is a tedious process.

The ratio used for the study subject to bias, as they suffer from the difference of opinion in the concepts used for computation.

The accuracy of the analysis depends on the data collected from the financial statements.

TI has various diversified products and therefore interfirm comparison is not possible.

The project period 45 days is insufficient as the operation of Aavin are numerous and complex, hence the various areas could not be fully covered.

Time is an important limitation. The whole study was conducted in a period of 45-50 days, which is not sufficient to carry out proper interpretation and analysis.

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SCOPE OF THE RESEARCH

1. The study has great significance and provides benefits to various parties who directly or indirectly interact with the company. 2. It is beneficial to management of the company by providing crystal clear picture regarding important aspects like liquidity, leverage, activity and profitability. 3. The study is also beneficial to employees and offers motivation by showing how actively they are contributing for companys growth. The investors who are interested in investing in the companys shares will also get benefited by going through the study and can easily take a decision whether to invest or not to invest in the companys shares

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INTRODUCTION TO RATIO ANALYSIS Financial Analysis:

Financial analysis is the process of identifying the financial strengths and weaknesses of the firm and establishing relationship between the items of the balance sheet and profit & loss account. Financial ratio analysis is the calculation and comparison of ratios, which d from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a companys financial condition, its operations and attractiveness as an investment. The information in the statements is used by Trade creditors, to identify the firms ability to meet their claims i.e. liquidity position of the company. Investors, to know about the present and future profitability of the company and its financial structure. Management, in every aspect of the financial analysis. It is the responsibility of the management to maintain sound financial condition in the company.

Ratio Analysis:
The term Ratio refers to the numerical and quantitative relationship between two items or variables. This relationship can be exposed as Percentages Fractions Proportion of numbers Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition can be determined. Ratio reflects a quantitative relationship helps to form a quantitative judgment.

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Steps In Ratio Analysis:

The first task of the financial analysis is to select the information relevant to the decision under consideration from the statements and calculates appropriate ratios. To compare the calculated ratios with the ratios of the same firm relating to the pas6t or with the industry ratios. It facilitates in assessing success or failure of the firm. Third step is to interpretation, drawing of inferences and report writing conclusions are drawn after comparison in the shape of report or recommended courses of action.

Nature Of Ratio Analysis:

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions. It is only a means of understanding of financial strengths and weaknesses of a firm. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst has to select the appropriate data and calculate only a few appropriate ratios. The following are the four steps involved in the ratio analysis. Selection of relevant data from the financial statements depending upon the objective of the analysis. Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratios of some other firms or the comparison with ratios of the industry to which the firm belongs.

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Interpretation Of The Ratios:

The interpretation of ratios is an important factor. The inherent limitations of ratio analysis should be kept in mind while interpreting them. The impact of factors such as price level changes, change in accounting policies, window dressing etc., should also be kept in mind when attempting to interpret ratios. The interpretation of ratios can be made in the following ways. Single absolute ratio Group of ratios Historical comparison Projected ratios Inter-firm comparison

Classification Of Ratios:
The use of ratio analysis is not confined to financial manager only. There are different parties interested in the ratio analysis for knowing the financial position of a firm for different purposes. Various accounting ratios can be classified as follows: 1. Traditional Classification 2. Functional Classification 3. Significance ratios

1. Traditional Classification
It includes the following. Balance sheet (or) position statement ratio: They deal with the relationship between two balance sheet items, e.g. the ratio of current assets to current liabilities etc., both the items must, however, pertain to the same balance sheet. Profit & loss account (or) revenue statement ratios: These ratios deal with the relationship between two profit & loss account items, e.g. the ratio of gross profit to sales etc.,

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Composite (or) inter statement ratios: These ratios exhibit the relation between a profit & loss account or income statement item and a balance sheet items, e.g. stock turnover ratio, or the ratio of total assets to sales.

2. Functional Classification
These include liquidity ratios, long term solvency and leverage ratios, activity ratios and profitability ratios.

3. Significance Ratios
Some ratios are important than others and the firm may classify them as primary and secondary ratios. The primary ratio is one, which is of the prime importance to a concern. The other ratios that support the primary ratio are called secondary ratios.

In The View Of Functional Classification The Ratios Are:

1. Liquidity ratio 2. Leverage ratio 3. Activity ratio 4. Profitability ratio

1. LIQUIDITY RATIOS
Liquidity refers to the ability of a concern to meet its current obligations as & when there becomes due. The short term obligations of a firm can be met only when there are sufficient liquid assets. The short term obligations are met by realizing amounts from current, floating (or) circulating assets The current assets should either be calculated liquid (or) near liquidity. They should be convertible into cash for paying obligations of short term nature. The sufficiency (or) insufficiency of current assets should be assessed by comparing them with short-term current liabilities. If current assets can pay off current liabilities, then liquidity position will be satisfactory. To measure the liquidity of a firm the following ratios can be calculated Current ratio

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Quick (or) Acid-test (or) Liquid ratio Absolute liquid ratio (or) Cash position ratio

(a) Current Ratio

Current ratio may be defined as the relationship between current assets and current liabilities. This ratio also known as Working capital ratio is a measure of general liquidity and is most widely used to make the analysis of a short-term financial position (or) liquidity of a firm Current assets Current ratio = Current liabilities

Components of current ratio

CURRENT ASSETS
Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses

CURRENT LIABILITIES
Out standing or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

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(b) Quick Ratio

Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the ability of a firm to pay its short-term obligations as & when they become due. Quick ratio may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if it is converted into cash with in a short period without loss of value.

Quick or liquid assets Quick ratio = Current liabilities

Components of quick or liquid ratio QUICK ASSETS

Cash in hand Cash at bank Bills receivable Sundry debtors Marketable securities Temporary investments

CURRENT LIABILITIES
Out standing or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income tax payable

(c) Absolute Liquidity Ratio

Although receivable, debtors and bills receivable are generally more liquid than inventories, yet there may be doubts regarding their realization into cash immediately or in time. Hence, absolute liquid ratio should also be calculated together with current ratio and quick ratio so as to exclude even receivables from the current assets and find out the absolute liquid assets.

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Absolute liquid assets Absolute liquid ratio = Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid assets are considered to pay Rs.2 worth current liabilities in time as all the creditors are nor accepted to demand cash at the same time and then cash may also be realized from debtors and inventories.

Components of Absolute Liquid Ratio ABSOLUTE LIQUID ASSETS

Cash in hand Cash at bank Interest on Fixed Deposit

CURRENT LIABILITIES
Out standing or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income tax payable

2. LEVERAGE RATIOS
The leverage or solvency ratio refers to the ability of a concern to meet its long term obligations. Accordingly, long term solvency ratios indicate firms ability to meet the fixed interest and costs and repayment schedules associated with its long term borrowings. The following ratio serves the purpose of determining the solvency of the concern. Proprietary ratio

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(a) Proprietary Ratio

A variant to the debt-equity ratio is the proprietary ratio which is also known as equity ratio. This ratio establishes relationship between share holders funds to total assets of the firm. Shareholders funds Proprietary ratio = Total assets

SHARE HOLDERS FUND

Share Capital Reserves & Surplus

TOTAL ASSETS
Fixed Assets Current Assets Cash in hand & at bank Bills receivable Inventories Marketable securities Short-term investments Sundry debtors Prepaid Expenses

3. ACTIVITY RATIOS
Funds are invested in various assets in business to make sales and earn profits. The efficiency with which assets are managed directly effect the volume of sales. Activity ratios measure the efficiency (or) effectiveness with which a firm manages its resources (or) assets. These ratios are also called Turn over ratios because they indicate the speed with which assets are converted or turned over into sales. Working capital turnover ratio Fixed assets turnover ratio

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Capital turnover ratio Current assets to fixed assets ratio

(a) Working Capital Turnover Ratio

Working capital of a concern is directly related to sales.

Working capital = Current assets - Current liabilities

It indicates the velocity of the utilization of net working capital. This indicates the no. of times the working capital is turned over in the course of a year. A higher ratio indicates efficient utilization of working capital and a lower ratio indicates inefficient utilization. Working capital turnover ratio=cost of goods sold/working capital.

Components of Working Capital CURRENT ASSETS

Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses

CURRENT LIABILITIES
Out standing or accrued expenses Bank over draft Bills payable Short-term advances Sundry creditors Dividend payable Income-tax payable

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(b) Fixed Assets Turnover Ratio

It is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the firm. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. Cost of Sales Fixed assets turnover ratio = Net fixed assets

Cost of Sales = Income from Services

Net Fixed Assets = Fixed Assets - Depreciation

(c) Capital Turnover Ratio

Sometimes the efficiency and effectiveness of the operations are judged by comparing the cost of sales or sales with amount of capital invested in the business and not with assets held in the business, though in both cases the same result is expected. Capital invested in the business may be classified as long-term and shortterm capital or as fixed capital and working capital or Owned Capital and Loaned Capital. All Capital Turnovers are calculated to study the uses of various types of capital.

Cost of goods sold Capital turnover ratio = Capital employed

Cost of Goods Sold = Income from Services

Capital Employed = Capital + Reserves & Surplus

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(d) Current Assets To Fixed Assets Ratio

This ratio differs from industry to industry. The increase in the ratio means that trading is slack or mechanization has been used. A decline in the ratio means that debtors and stocks are increased too much or fixed assets are more intensively used. If current assets increase with the corresponding increase in profit, it will show that the business is expanding.

Current Assets Current Assets to Fixed Assets Ratio = Fixed Assets

Component of Current Assets to Fixed Assets Ratio

CURRENT ASSETS
Cash in hand Cash at bank Bills receivable Inventories Work-in-progress Marketable securities Short-term investments Sundry debtors Prepaid expenses

FIXED ASSETS
Machinery Buildings Plant Vehicles

4. PROFITABILITY RATIOS
The primary objectives of business undertaking are to earn profits. Because profit is the engine, that drives the business enterprise.

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Net profit ratio Return on total assets Reserves and surplus to capital ratio Earnings per share Operating profit ratio Price earning ratio Return on investments

(a) Net Profit Ratio

Net profit ratio establishes a relationship between net profit (after tax) and sales and indicates the efficiency of the management in manufacturing, selling administrative and other activities of the firm.

Net profit after tax Net profit ratio= Net sales

Net Profit after Tax = Net Profit () Depreciation () Interest () Income Tax

Net Sales = Income from Services

It also indicates the firms capacity to face adverse economic conditions such as price competitors, low demand etc. Obviously higher the ratio, the better is the profitability.

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(b) Return On Total Assets

Profitability can be measured in terms of relationship between net profit and assets. This ratio is also known as profit-to-assets ratio. It measures the profitability of investments. The overall profitability can be known.

Net profit Return on assets = Total assets

Net Profit = Earnings before Interest and Tax

Total Assets = Fixed Assets + Current Assets

(c) Reserves And Surplus To Capital Ratio

It reveals the policy pursued by the company with regard to growth shares. A very high ratio indicates a conservative dividend policy and increased ploughing back to profit. Higher the ratio better will be the position.

Reserves& surplus Reserves & surplus to capital = Capital

(d) Earnings Per Share

Earnings per share is a small verification of return of equity and is calculated by dividing the net profits earned by the company and those profits after taxes and preference dividend by total no. of equity shares.

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Net profit after tax Earnings per share = Number of Equity shares

The Earnings per share is a good measure of profitability when compared with EPS of similar other components (or) companies, it gives a view of the comparative earnings of a firm.

(e) Operating Profit Ratio

Operating ratio establishes the relationship between cost of goods sold and other operating expenses on the one hand and the sales on the other.

Operating cost Operation ratio = Net sales

However 75 to 85% may be considered to be a good ratio in case of a manufacturing under taking. Operating profit ratio is calculated by dividing operating profit by sales. Operating profit = Net sales - Operating cost

Operating profit Operating profit ratio = Sales

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(f) Price Earning Ratio

Price earning ratio is the ratio between market price per equity share and earnings per share. The ratio is calculated to make an estimate of appreciation in the value of a share of a company and is widely used by investors to decide whether (or) not to buy shares in a particular company. Generally, higher the price-earning ratio, the better it is. If the price earning ratio falls, the management should look into the causes that have resulted into the fall of the ratio.

Market Price per Share Price Earning Ratio = Earnings per Share

Capital + Reserves & Surplus Market Price per Share = Number of Equity Shares

Earnings before Interest and Tax Earnings per Share = Number of Equity Shares

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(g) Return On Investment

Return on share holders investment, popularly known as Return on investments (or) return on share holders or proprietors funds is the relationship between net profit (after interest and tax) and the proprietors funds.

Net profit (after interest and tax) Return on shareholders investment = Shareholders funds

The ratio is generally calculated as percentages by multiplying the above with 100.

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DATA ANALYSIS AND INTERPRETATION

LIQUIDITY RATIO 1. CURRENT RATIO (Amount in Rs.) Current Ratio

Year Current Assets Current Liabilities Ratio

2007 2008 2009 2010 2011

15,57,60,00,000 16,91,20,00,000 23,16,20,00,000 25,24,10,00,000 22,72,30,00,000

11,05,10,00,000 11,18,60,00,000 12,30,30,00,000 13,69,40,00,000 13,63,30,00,000

1.40 1.51 1.88 1.84 1.67

Interpretation
As a rule, the current ratio with 2:1 (or) more is considered as satisfactory position of the firm. The above table shows that in 2008 and 2009 there was a constant increase in ratio as compared to 2007 i.e. current assets were increasing constantly for 2 years but after 2009 in 2010 there was a slight decrease in current ratio due to increase in current liabilities and further in 20011 the current ratio was so much

decreased due to decrease in current assets. So, overall the current ratio was not satisfactory as it was not 2:1 and further it decreased more. Therefore it shows that companys current position is not satisfactory.

33

GRAPHICAL REPRESENTATION

Current Ratio

2 1.8 1.6 1.4 1.2 1

Ratios
0.8 0.6 0.4 0.2 0 2007 2008 2009

2010

2011

34

2. QUICK RATIO (Amount in Rs.) Quick Ratio

Year Quick Assets Quick Liabilities Ratio

2007 2008 2009 2010

13,83,40,00,000 14,85,50,00,000 19,95,60,00,000 22,23,10,00,000

11,05,10,00,000 11,18,60,00,000 12,30,30,00,000 13,69,40,00,000

1.25 1.33 1.62 1.62

2011

19,09,30,00,000

13,63,30,00,000

1.40

Interpretation Liquid Ratio of 1:1 is considered to represent a satisfactory current financial condition. It is an ideal ratio for the concern. As the above table shows that the liquid ratio was increasing constantly for last 4 years i.e., from 2007 to 2010, but in 2011 it got slight decrease. But from the very first year (2005) it was more than 1 and till 2011 it is more than 1. So we can say that the companys position according to liquid ratio is good.

35

GRAPHICAL REPRESENTATION

Quick Ratio
1.8

1.6

1.4

1.2

0.8

Ratios

0.6

0.4

0.2

0 2007 2008 2009

2010

2011

36

3. ABOSULTE LIQUIDITY RATIO (Amount in Rs.) Absolute Cash Ratio

Year Absolute Liquid Assets Current Liabilities Ratio

2007 2008 2009 2010 2011

4,10,20,00,000 7,71,20,00,000 8,20,80,00,000 5,22,20,00,000 5,14,40,00,000

11,05,10,00,000 11,18,60,00,000 12,30,30,00,000 13,69,40,00,000 13,63,30,00,000

0.37 0.69 0.67 0.38 0.38

INTERPRETATION
The current assets which are ready in the form of cash are considered as absolute liquid assets. Here, the cash and bank balance are absolute liquid assets. The above table shows that the absolute liquidity ratio was very high during 2008 and 2009 but in 2010 and 2011 it got decreased because of payment of some short term loans and expenses.

37

GRAPHICAL REPRESENTATION

Absolute Cash Ratio

0.7

0.6

0.5

0.4

Ratios
0.3

0.2

0.1

0 2007 2008 2009 2010 2011

38

LEVERAGE RATIOS 4. PROPRIETORY RATIO (Amount in Rs.) Proprietory Ratio

Year Share Holders Funds Total Assets Ratio

2007 2008 2009 2010 2011

10,02,50,00,000 11,29,30,00,000 13,33,30,00,000 14,56,70,00,000 14,56,10,00,000

22,06,90,00,000 28,41,60,00,000 38,09,80,00,000 43,44,60,00,000 42,54,00,00,000

0.45 0.40 0.35 0.34 0.34

Interpretation
If we are following standard current ratio of 2:1 and standard debt-equity ratio of 2:1, then proprietory ratio should be 1:3, i.e., the proprietors/ shareholders fund should be 1/3 of Total Assets. The above table shows that proprietory ratio was good in 2007 but from 2007 it is constantly decreasing till 2011. But still it is more than 1:3. So we can say that companys still position is satisfactory according to proprietory ratio.

39

GRAPHICAL REPRESENTATION

Proprietory Ratio
0.45

0.4

0.35

0.3

0.25

Ratios
0.2

0.15

0.1

0.05

0 2007 2008 2009 2010 2011

40

ACTIVITY RATIOS 5. WORKING CAPITAL TURNOVER RATIO (Amount in Rs.) Working Capital Turnover Ratio
Year Sales Working Capital Ratio

2007 2008 2009 2010 2011

52,97,90,00,000 57,85,90,00,000 68,95,40,00,000 71,43,50,00,000 81,20,80,00,000

4,52,50,00,000 5,72,60,00,000 10,85,90,00,000 11,54,70,00,000 9,09,00,00,000

11.70 10.10 6.35 6.19 8.93

Interpretation
The above table shows that the working capital turnover ratio is decreasing from 2007 to 2010 continuously due to constant increase in sales and working capital but in 2011 the working capital turnover ratio gone up due to decrease in working capital.

41

GRAPHICAL REPRESENTATION

Working Capital Turnover Ratio

12

10

Ratios
4

0 2007 2008 2009 Ratios 2010 2011

42

6. FIXED ASSETS TURNOVER RATIO (Amount in Rs.) Fixed Assets Turnover Ratio
Year Sales Net Fixed Assets Ratio

2007 2008 2009 2010 2011

52,97,90,00,000 57,85,90,00,000 68,95,40,00,000 71,43,50,00,000 81,20,80,00,000

15,74,60,00,000 19,86,20,00,000 25,18,20,00,000 26,30,20,00,000 25,92,10,00,000

3.36 2.91 2.74 2.72 3.13

Interpretation
A high fixed assets turnover ratio indicates efficient utilization of fixed assets in generating sales. A firm whose plant and machinery are old may show a higher fixed assets turnover ratio than the firm which has purchased them recently. The above table shows that the fixed assets turnover ratio got instant decrease from 2007 to 2010 due to purchase of fixed assets continuously but in 2011 the fixed assets turnover ratio got increased due to increase in sales and selling of fixed assets.

43

PIE CHART REPRSENTATION

Fixed Assets Turnover Ratio

2007 2008 2009 2010 2011

44

7. CAPITAL TURNOVER RATIO (Amount in Rs.) Capital Turnover Ratio

Year Sales Capital Employed Ratio

2007 2008 2009 2010 2011

52,97,90,00,000 57,85,90,00,000 68,95,40,00,000 71,43,50,00,000 81,20,80,00,000

10,02,50,00,000 11,29,30,00,000 13,33,30,00,000 14,56,70,00,000 14,56,10,00,000

5.28 5.12 5.17 4.90 5.58

Interpretation
This is another ratio to judge the efficiency and effectiveness of the company like profitability ratio. Capital turnover ratio indicates the firms ability of generating sales per rupee of long term investment. The higher the ratio, the more efficient the utilization of owners and long-term creditors funds. The above table shows that capital turnover ratio is decreasing from 2007 to 2010 constantly due to increase in capital employed constantly but in 2011 such a ratio got increased due to high increase in sales and slight decrease in capital employed.

45

PIE

CHART

Capital Turnover Ratio

2007 2008 2009 2010 2011

REPRESENTATION

46

8. CURRENT ASSETS TO FIXED ASSETS RATIO (Amount in Rs.) Current Assets To Fixed Assets Ratio
Year Current Assets Fixed Assets Ratio

2007 2008 2009 2010 2011

15,57,60,00,000 16,91,20,00,000 23,16,20,00,000 25,24,10,00,000 22,72,30,00,000

15,74,60,00,000 19,86,20,00,000 25,18,20,00,000 26,30,20,00,000 25,92,10,00,000

0.99 0.85 0.92 0.96 0.88

Interpretation
The above table shows that current assets to fixed assets ratio is fluctuating throughout the whole five years, i.e., from 2007 to 2011. In the end of financial year 2011 the ratio was 0.88 which was decreased from 2008 due to decrease in current assets and fixed assets.

47

GRAPHICAL REPRESENTATION

Current Assets To Fixed Assets Ratio

2011

2010

2009

Ratios

2008

2007

0.75

0.8

0.85

0.9

0.95

1.05

48

PROFITABILITY RATIOS GENERAL PROFITABILITY RATIOS 9. NET PROFIT RATIO (Amount in Rs.) Net Profit Ratio
Year Net Profit After Tax Sales Ratio

2007 2008 2009 2010 2011

2,05,80,00,000 1,89,00,00,000 2,33,90,00,000 89,60,00,000 42,00,00,000

52,97,90,00,000 57,85,90,00,000 68,95,40,00,000 71,43,50,00,000 81,20,80,00,000

0.04 0.03 0.03 0.01 0.01

Interpretation
The net profit ratio is the overall measure of the firms ability to turn each rupee of income into net profit. If the net margin is inadequate the firm will fail to achieve return on shareholders funds. High net profit ratio will help the firm se in the fall of sales, rise in cost of production or declining demand. The above table shows that net profit is decreasing continuously from 2010 to 2011 because the sales is increased. The decrement in net profit resulted a continuous decrease in net profit ratio from 2007 to 2011. It shows unsatisfactory position of the firm.

49

GRAPHICAL REPRESENTATION

Net Profit Ratio

2011

2010

2009

Ratios

2008

2007

0 0.01 0.02 0.03 0.04

50

10. OPERATING PROFIT RATIO (Amount in Rs.) Operating Profit Ratio

Year Operating Profit Sales Ratio

2007 2008 2009 2010 2011

4,98,10,00,000 4,97,90,00,000 6,82,10,00,000 5,85,00,00,000 6,17,90,00,000

52,97,90,00,000 57,85,90,00,000 68,95,40,00,000 71,43,50,00,000 81,20,80,00,000

0.09 0.09 0.10 0.08 0.08

Interpretation
The operating profit ratio is used to measure the relationship between net profits and sales of a firm. Depending on the concept, it will decide. The operating profit ratio is slightly fluctuated during the whole five years (2007 to 2011). Overall it is constant.

51

GRAPHICAL REPRESENTATION

Operating Profit Ratio

2011

2010

2009

Ratios

2008

2007

0.02

0.04

0.06

0.08

0.1

52

11. RETURN ON TOTAL ASSETS RATIO (Amount in Rs.) Return on Total Assets Ratio
Year Net Profit After Tax Total Assets Ratio

2007 2008 2009 2010 2011

2,05,80,00,000 1,89,00,00,000 2,33,90,00,000 89,60,00,000 42,00,00,000

22,06,90,00,000 28,41,60,00,000 38,09,80,00,000 43,44,60,00,000 42,54,00,00,000

0.09 0.07 0.06 0.02 0.01

Interpretation
This is the ratio between net profit and total assets. The ratio indicates the return on total assets in the form of profits. The net profit is decreasing continuously from two years, i.e., from 2010 to 2011 and it also got decreased in 2008 as well. The total assets got increased continuously from 2007 to 2010 and there is only slight decrease in total assets in 2009. As the result of all this, the return on total assets ratio is getting decreased continuously from 2007 to 2011.

53

GRAPHICAL REPRESENTATION

Return on Total Assets Ratio

2011

2010

2009

Ratios

2008

2007

0.02

0.04

0.06

0.08

0.1

54

12. RESERVES & SURPLUS TO CAPITAL RATIO (Amount in Rs.) Reserves & Surplus To Capital Ratio
Year Reserves & Surplus Capital Ratio

2007 2008 2009 2010 2011

7,75,00,00,000 9,15,40,00,000 11,19,40,00,000 12,42,90,00,000 12,42,20,00,000

2,27,50,00,000 2,13,90,00,000 2,13,90,00,000 2,13,90,00,000 2,13,90,00,000

0.34 0.43 0.52 0.58 0.58

Interpretation
The ratio is used to reveal the policy pursued by the company. A very high ratio indicates a conservative dividend policy and vice-versa. Higher the ratio better will be the position. The above table is indicating an instant increase in the ratio due to instant increase reserves & surplus. So the companys position is good because it is having minimum risks.

55

GRAPHICAL REPRESENTATION

Reserve & Surplus To Capital Ratio

2011

2010

2009

Ratios

2008

2007

0.1

0.2

0.3

0.4

0.5

0.6

56

OVERALL PROFITABILITY RATIOS

13. EARNINGS PER SHARE (Amount in Rs.) Earnings Per Share

Year Net Profit After Tax No of Equity Shares Ratio

2007 2008 2009 2010 2011

2,05,80,00,000 1,89,00,00,000 2,33,90,00,000 89,60,00,000 42,00,00,000

21,38,80,000 21,38,80,000 21,38,80,000 21,38,80,000 21,38,80,000

9.62 8.84 10.94 4.19 1.96

Interpretation
Earnings per share ratios are used to find out the return that the shareholders earn from their shares. After charging depreciation and after payment of tax, the remaining amount will be distributed by all the shareholders. The above table is showing that the net profit is decreasing in large amount for last two years (2010 & 2011). This caused EPS to get decreased. It shows bad position of the firm from shareholders point of view.

57

GRAPHICAL REPRESENTATION

Earning Per Share Ratio

2011

2010

2009

Ratios

2008

2007

10

12

58

14. PRICE EARNINGS (P/E) RATIO (Amount in Rs.) Price Earning (P/E) Ratio
Year Market Price Per Share Earnings Per Share Ratio

2007 2008 2009 2010 2011

46.87 52.80 62.34 68.11 68.08

9.62 8.84 10.94 4.19 1.96

4.87 5.97 5.70 16.26 34.73

Interpretation
The price earning ratio is calculated to make an estimate of application in the value of share of a company. Actually the ratio indicates the pay back period to the investors or prospective investors. The above table shows that the price earning ratio is getting increasing constantly throughout the whole five years (2007-2011). This makes a negative impact on new and existing investors.

59

GRAPHICAL REPRESENTATION

Price Earning Ratio

25

20

15

10

Ratios

0 2007 2008 2009 Ratios 2010 2011

60

15. RETURN ON INVESTMENT (Amount in Rs.) Return on Investment

Year Net Profit After Tax Share Holders Fund Ratio

2007 2008 2009 2010 2011

2,05,80,00,000 1,89,00,00,000 2,33,90,00,000 89,60,00,000 42,00,00,000

10,02,50,00,000 11,29,30,00,000 13,33,30,00,000 14,56,70,00,000 14,56,10,00,000

21% 17% 18% 6% 3%

Interpretation
This is the ratio between net profits and shareholders funds. The ratio is generally calculated as percentage multiplying with 100. The net profit is decreasing throughout the three years (2008, 2010, 2011) which cause decrease in ROI ratio.

61

GRAPHICAL REPRESENTATION

Return on Investment Ratio

0.25

0.2

0.15

0.1

Ratios

0.05

0 2007 2008 2009 Ratios 2010 2011

62

FACTS & FINDINGS

The current ratio has shown in a fluctuating trend as 1.40, 1.51, 1.88, 1.84, and 1.67 during 2007 to 2011 of which indicates an increase in current liabilities and a decrease in current assets from 2009 to 2011. It indicates companys current position is not satisfactory as current ratio is not of standard ratio of 2:1. The quick ratio was in an increasing trend through out the period of 2007 2010 resulting as 1.25, 1.33, 1.62, and 1.62. But during 2009 there was a decrease in quick ratio which was due to decrease in quick assets. The absolute liquid ratio was been increased from 0.37 to 0.69, from 2007 to 2008. Then it got a slight decrease in 2009 and it was 0.67 in that year. But in 2010 it got decreased to 0.38 and was same in 2011 due to decrease in cash and bank balance. The proprietory ratio has shown a decreasing trend from 2007 to 2011. It indicates that companys long term solvency is not good. The working capital ratio has shown a decreased trend from 2007 to 2010 increase in working capital but in 2011 it got increased due to decrease in working capital and a good increase in sales as well. The fixed assets turnover ratio has shown a decreasing trend from the year 2007 10 due to increase in fixed assets. But it got increase in 2011 due to slight decrease in fixed assets and a good increase in sales as well. The capital turnover ratio has shown a fluctuating trend form 2007 2011 (5.28, 5.12, 5.17, 4.90, 5.58). It increased in current year. The current assets to fixed assets ratio has also shown a fluctuating trend during 2007 to 2011 (0.99, 0.85, 0.92, 0.96, 0.88). It decreased in current year. The net profit ratio is in decreasing trend from 2007 to 2011 due to constant decrease in net profit. It shows that the profitability of the company is not so good.

63

SWOT ANALYSIS

STRENGTHS:
1. Domestic image of OMAX supported by Prudentials international strength of the company. 2.The company also provides innovative products to cater to different needs of different customers. 3.Company is having enough and more efficient resources and their proper allocation. 4.Company is domestically cost competitive. 5.Adheres to strict quality controls and its quality control is one of its greater strength. 6.It has access to latest technology. 7.Its production capacity is higher with variour plants established domestically.

WEAKNESSES:
1 Poor management expertise. 2. Low level of research and development capability. 3. It is dependent on global major players/ foreign companies for new technology.

OPPORTUNITIES

1. There will be inflow of managerial and financial expertise from the world s leading automotive markets. Further the burden of educating consumers will also be shared among many players. 2. International companies will help in building world class expertise in local market.

64

THREATS

1.

Other private auto parts companies are also vying for the same automobile

companies. 2. Presence of a large counterfeit components markets/players/competitors pose a significant threat. 3. Pressure on prices from OEMs continues. 4. Imports pose price based competition in the market.

65

CONCLUSION

It is concluded from the above study on Omax Autos Pvt. Ltd. that its financial position is not satisfactory and the management should think about it. The companies position was being found sound in 2009 but due to recession, the companys current position is not so good. Its profitability and solvency are the matters of discussion. Though the companys current position (2011) shows that company is fighting back but it has to put a lot of efforts and it should manage itself taking into consideration the long term development of the company.

66

RECOMMENDATIONS AND SUGGESTIONS

Working capital management is not up to expected level. improved by effective utilization and control of current assets.

It needs to be

Concentration in realization of revenues will generate more internal funds which will enable the company to have more working capital. Current assets & current liabilities should be effectively managed. Companys net profit has been decreased highly in the last two consecutive years. Hence, the company should make very high efforts to make it first constant and then increase. Incentive schemes and other motivating factors need to be introduced to increase the moral of the management personnel. There must be an effective utilization of fixed assets to achieve better profitability.

67

APPENDIX
Schedule: Dear Sir/Madam, Heres a set of questions that is strictly meant for research and shall not be used for any other purpose. It is designed to perceive the mindset of the people regarding the online share trading in Alwar city. Respondent Name.Age Profession.Area

Balancesheet - Omax Autos Ltd Crores

Particulars Liabilities
Share Capital Reserves & Surplus

Rs. In

Mar'09 12 Months
21.39 124.22

Mar'08 12 Months
21.39 124.29

Mar'07 12 Months
21.39 111.94

Mar'06 12 Months
21.39 91.54

Mar'05 12 Months
22.75 77.50

Net Worth
Secured Loans Unsecured Loans

145.61
279.79 0.00

145.67
258.52 30.27

133.33
224.14 23.52

112.93
168.35 2.89

100.25
99.72 20.72

TOTAL LIABILITIES Assets

Gross Block (-) Acc. Depreciation

425.40

434.46

380.98

284.16

220.69

411.63 152.41

390.67 127.65

356.09 104.27

282.47 83.86

227.15 69.68

Net Block
Capital Work in Progress. Investments. Inventories

259.21
74.69 0.60 36.30

263.02
54.68 0.60 30.10

251.82
16.22 4.35 32.06

198.62
27.77 0.30 20.57

157.46
14.54 3.00 17.42

68

Sundry Debtors Cash And Bank Loans And Advances

89.27 41.02 60.64

96.52 77.12 48.67

65.84 82.08 51.64

53.94 52.22 42.39

49.93 51.44 36.97

Total Current Assets

Current Liabilities Provisions

227.23
130.30 6.03

252.41
126.49 10.46

231.62
106.23 16.80

169.12
98.82 13.04

155.76
97.66 12.85

Total Current Liabilities

136.33

136.94 115.47
0.70

123.03 108.59
0.00

111.86 57.26
0.22

110.51 45.25
0.44

NET CURRENT ASSETS 90.90

Misc. Expenses 0.00

TOTAL ASSETS

425.40

434.46

380.98

284.16

220.69

Profit & Loss - Omax Autos Ltd. Crores

Mar'09 12 Months INCOME:
Sales Turnover Excise Duty NET SALES Other Income 958.67 146.60 812.08 0.00 864.94 150.59 714.35 0.00 838.50 148.96 689.54 0.00 703.18 124.59 578.59 0.00

Rs. In

Mar'08 12 Months

Mar'07 12 Months

Mar'06 12 Months

Mar'05 12 Months

608.30 78.51 529.79 0.00

TOTAL INCOME EXPENDITURE:

Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses

825.21

729.64

698.98

584.96

535.71

44.01 602.48 78.15 12.46 13.19

42.12 516.42 74.28 9.22 13.81

38.92 489.92 66.26 12.06 14.18

59.49 416.70 31.59 8.80 12.22

42.61 369.79 26.31 30.54 10.73

69

Expenses Capitalised Provisions Made

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

TOTAL EXPENDITURE
Operating Profit EBITDA Depreciation Other Write-offs

750.28
61.79 74.92 28.50 0.00

655.85
58.50 73.79 26.77 0.00

621.33
68.21 77.65 21.22 0.00

528.80
49.79 56.16 16.10 0.00

479.98
49.81 55.72 17.14 0.00

EBIT
Interest

46.42
38.62 7.80 3.60

47.02
30.32 16.70 7.74

56.43
20.38 36.05 12.66

40.06
10.74 29.32 10.43

38.59
8.02 30.57 9.99

EBT Taxes

Profit and Loss for the Year 4.20

Non Recurring Items Other Non Cash Adjustments Other Adjustments 1.22 1.35 0.00

8.96
6.88 0.26 0.00

23.39
0.27 2.38 -2.38

18.90
1.14 -1.12 0.00

20.58
-0.2 -0.0 0.03

REPORTED PAT KEY ITEMS

Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs)

6.78

16.10

23.66

18.92

20.29

0.00 2.14 9.99 213.88

0.00 3.21 15.00 213.88

0.00 4.81 22.49 213.88

0.00 4.28 19.99 213.88

0.00 4.28 19.99 213.88

EPS - Annualised (Rs)

9.62

8.84

10.94

4.19

1.96

70

BIBLIOGRAPHY

REFFERED BOOKS
FINANCIAL MANAGEMENT - I. M. PANDEY MANAGEMENT ACCOUNTANCY - PILLAI & BAGAVATI MANAGEMENT ACCOUNTING SHARMA & GUPTA PRINCIPLES OF MANAGEMENT ACCOUNTING - S.N.MAHESHWARI MANAGEMENT ACCOUNTING - T.S.REDDY & Y.HARI PRASAD REDDY

INTERNET SITE www.ercap.org www.wikipedia.com www.nwda.gov.in

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