Omax auto was incorporated in 1983, Omax is one of the largest
manufactures of sheet metal parts , machined tubular, electroplated
painted components, sprockets & welding facilities with integrated world
class assembly lines.
It has a very broad customer base and supplies products to Maruti Udyog,
Hero, Honda, Escorts, Bharat seats and other leading manufacturers of
Omax auto has the largest Sprocket manufacturing capacity (11 Million pa)
in South East Asia.
Omax auto has the largest welding facility in India with 800 machines. It
has Composite solution provider to customer requirement.
Products for Two Wheelers Products for Four Wheelers
Steering Handle Assembly
Oil Pump Assembly
Sprocket Cam and Sproket Timing
Complete Frame Assembly
Pedal Kick Strater
Neck Fuel Filter
Steering Column Shafts
Rocker Arm Shaft
Truck Chassis (Tata)
Back Plates for Brake shoes
Piston Rods for Dampe Assembly
Half Shaft Bars
Base Battery Set
To analyze the financial statement and behavioral
analysis of cost.
Last five year balance sheet has been reviewed along
with the changes in the Working capital.
To diagnose the information of financial
statements, and to judge the profitability.
Analyze of current assets and liabilities to identify
the cause of changes, covering a special emphasis
on turnaround of Omax auto ltd.
To study the liquidity position through various working capital related
To study the way and means of working capital finance of the OMAX
To estimate the working capital requirement of OMAX AUTO LIMITED.
To examine the effectiveness of working capital management polices with
the help of accounting ratio.
To evaluate the financial performance of the company.
YEAR Mar'06 Mar'07 Mar'08 Mar'09 Mar'10
Net Sales 391000 390072 436294 521089 548822
Working Capital 34574.13 28838.11 17100.24
Working Capital Turnover Ratio 11.31 13.53 25.51 20.71 15.7
This above ratio also shows that during the year 2009-10 the company
could utilize its resources in a better way compared to 2008-09
Mar'06 Mar'07 Mar'08 Mar'09 Mar'10
11.31 13.53 25.51 20.71 15.7
Net Sales Working Capital Working Capital Turnover Ratio
In lakh 2006 2007 2008 2009 2010
Current Assets 344354.7 369686.2 488491.6 627013.5 566643.8
Liabilities 309780.5 340848.1 471391 621854.1 531679.7
Current Ratio 1.1116 1.0846 1.0363 1.0083 1.066
The marginal increase has been on account of increase in Cash and Bank balances and
advances. Though the Current Ratio is less than 2 the company’s liquidity position is adequate.
Mar'06 Mar'07 Mar'08 Mar'09 Mar'10
QUICK ASSETS 84588 80626 165677 256115 311946
CURRENT LIABILITIES 309780.5 340848.1 471391 621854.1 531679.7
QUICK RATIO 0.273 0.236 0.351 0.411 0.586
0.273 0.236 0.351 0.411
QUICK ASSETS CURRENT LIABILITIES QUICK RATIO
It indicates that companies short term liquidity and ability to meet its short-term
obligations with its most liquid assets. The Company is in financially sound
Working capital of the company was increasing and showing
positive working capital per year. It shows good liquidity
Positive working capital indicates that company has the ability
of payments of short terms liabilities.
Working capital increased because of increment in the current
assets is more than increase in the current liabilities.
Company should raise funds through short term sources for short term
requirement of funds, which comparatively economical as compare to long
Company should take control on debtor’s collection period which is major
part of current assets
Company has to take control on cash balance because cash is non earning
assets and increasing cost of funds.
Company should reduce the inventory holding period with use of zero
This project has completed with annual reports; it just
constitutes one part of data collection i.e. secondary.
This project is based on five year annual reports. Conclusions
and recommendations are based on such limited data.
Limited area: -
Also it was difficult to collect the data regarding the competitors
and their financial information.