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th 27ANNUAL REPORT 2009-2010 Spreading Sphere of Influence OMAX AUTOS LIMITED Spreading Sphere of Influence .ippindia.com OMAX AUTOS LIMITED Corporate Office: Plot No. B-26, Institutional Area, Sector 32, Gurgaon - 122001 Phone: 91-124-4343000 Fax: 91-124-2580016 Website: www.omaxauto.com Designed & Printed at IPP/www Contents Corporate Information 2 Financial Highlights & Graphs 4 Corporate Profile 6 Vision, Mission & IMS Policy 7 Aspirations 8 Our Strength- Our Employees 9 Omax Infrastructure 10 Omax - Step Towards Clean Energy 11 Message from Managing Director 12 Clients 14 Notice 15 Management Discussion & Analysis 19 Directors' Report with Annexures 24 Corporate Governance Report 31 Auditors' Report 49 Financial Statements 52 Milestones 1983 The year marked the beginning of the name "Omax Autos Limited". 1985 The first unit started in Dharuhera as an ancillary supplier to Hero Honda for Sheet Metal and Tubular Welded components. 1986 Omax Autos Limited went public with more than 7500 shareholders. 1988 Established its second unit Automax in Gurgaon. 1989 Diversified its customer base by roping in Carrier Aircon Ltd. in Air Conditioning Components. 1997 Bagged ISO 9002 certificate from TUV of Germany. 1999 Established its third unit- Speedomax in Sidhrawali. Tied up with Honda- Siel Cars India Ltd. and New Holland Tractors Ltd. for supply of Body and Axle parts. 2000 Set up the ultra modern Paint Shop with latest technology from ABB India Ltd. 2001 A new phase of Kaizen activity- Various Training & HR activities started in all plants. 2002 Established its Fourth Plant at IMT Manesar with a capital outlay of Rs. 200 million equipped with modern Tool Room, R&D Centre with state of the art machinery began production. 2003 Established its Fifth Plant- Sprocket division in Dharuhera. Bagged ISO/TS- 16949, ISO 14001 & OHSAS- 18001 Certification from UL India for all plants. 2004 Established its Sixth Plant at Bangalore having machining & sheet metal manufacturing facilities. Established its Seventh Plant- Indital at Dharuhera. Started Exports to North America and Europe with clients such as Delphi, Tenneco, Cummins, Piaggio etc. 2005 Established its Eighth Plant at Binola, Gurgaon for catering export clients. 2006 SAP rolled out in all Eight plants across India. 2007 Automax, Gurgaon-Sohna Road Plant merged with Binola Plant. 2008 Established its latest Plant at Lucknow to manufacture chassis for commercial vehicles for Tata Motors. Established new Corporate Office in Gurgaon. 2009 Tied up with IKEA for supply of Metal Houseware Products. Reached the remarkable heights of 26 years of manufacturing and rendering quality products & services to customers. 2010 Commercial production started at Lucknow plant. Set up plant at Bawal to manufacture Home Furnishing products. Installed 100 kWp Solar PV System at Dharuhera & Manesar plant for captive use. Annual Report 2009-10 1 Corporate Information Corporate Information Chairman Emeritus: Corporate Office: Sidhrawali Plant Dr. Brijmohan Lall Munjal Plot No. B-26, Institutional Area, Speedomax (A unit of Omax Autos Limited) Sector 32, Gurgaon - 122001 64 K.M.Stone, Delhi- Jaipur Highway, Village Sidhrawali, Gurgaon (Haryana)-123413 Board of Directors Omax Autos Limited Mr. Suresh Mathur Chairman Registered Office & Dharuhera Plant Address: Dharuhera Plant III Dr. Ramesh C. Vaish Director 69 K.M.Stone, Delhi Jaipur Highway, Omax Autos Limited- Sprocket Division Dr. T.N. Kapoor Director Dharuhera, Rewari (Haryana)- 122106 69 K.M. stone, Delhi -Jaipur Highway, Mr. Salil Bhandari Director Dharuhera, Rewari (Haryana)- 122106 Mr. Verinder Kumar Chhabra Director Bangalore Plant Mr. Atul Raheja Director Omax Autos Limited- Banglore Plant Lucknow Plant Mr. Lalit Bhasin Director Plot No. 6, Bomassandra- Jigani Link Road Omax Autos Limited - Lucknow Plant Mr. K.C. Chawla Whole Time Director Bomassandra, Banglore (Karnataka)- 560099 Tata Motors Vendor Park, Chinhat Industrial Area, Mr. Jatender Kumar Mehta Managing Director Deva Road, Lucknow-226019 Mr. Ravinder Mehta Managing Director Binola Plant Automax (A unit of Omax Autos Limited) Bawal Plant Audit Committee Delhi- Jaipur Highway, Village & P.O Binola Omax Autos Limited - Bawal Plant, Mr. Salil Bhandari Chairman Gurgaon (Haryana)- 122001 (Home Furnishing division) Plot No. 2, Sector-5, Bawal, Distt. Rewari, Dr. T.N. Kapoor Member Dharuhera Plant II Mr. Atul Raheja Member Haryana Indital (A unit of Omax Autos Limited) Mr. Jatender Kumar Mehta Member 69 K.M.Stone, Delhi Jaipur Highway, Gurgaon Plant Dr. R.C. Vaish Member Dharuhera, Rewari (Haryana)- 122106 Omax Autos Limited - Railway Division 38 KM Stone, Delhi-Jaipur Highway Auditors Manesar Plant Beharampur Road, Post-Office Khandsa M/s A. Kumar Gupta& Co., Omax Autos Limited- Manesar Plant Gurgaon-122001, Haryana Chartered Accountants, Ludhiana Plot No. 6, IMT, Sector- 3, Manesar Gurgaon (Haryana)- 122050 Internal Auditors M/s KRA & Associates M/s Singhi Chugh & Kumar M/s Doogar & Associates Secretarial Auditors M/s Chandrasekaran Associates, Registrar & Share Transfer Agent Bankers Company Secretaries M/s Link Intime India Private Limited Canara Bank State Bank of India (Formerly M/s Intime Spectrum Registry Limited) Citi Bank United Bank of India Senior Management Executives A-40, 2nd Floor, Naraina Industrial Area, Phase-II, Royal Bank of Scotland N.V. (India) HDFC Bank Limited Near Batra Banquet Hall, Deutsche Bank ICICI Bank Limited Mr. N.P. Singh ED (Human Resource) New Delhi- 110028 Yes Bank Limited The Hongkong & Shanghai Mr. V.K.Gupta ED (Commercial) Tel. No. +91-1-41410592-94 Kotak Mahendra Bank Limited Banking Corporation Limited Fax: +91-11-41410591 Tata Capital Limited Mr. Sharad Jain Chief Financial Officer E-mail: [email protected] Mr. Kishor Karnataki CEO (Commercial Vehicle) Mr. Manoj Mishra President (Passenger Car) 2 Annual Report 2009-10 3 Corporate Information Corporate Information Chairman Emeritus: Corporate Office: Sidhrawali Plant Dr. Brijmohan Lall Munjal Plot No. B-26, Institutional Area, Speedomax (A unit of Omax Autos Limited) Sector 32, Gurgaon - 122001 64 K.M.Stone, Delhi- Jaipur Highway, Village Sidhrawali, Gurgaon (Haryana)-123413 Board of Directors Omax Autos Limited Mr. Suresh Mathur Chairman Registered Office & Dharuhera Plant Address: Dharuhera Plant III Dr. Ramesh C. Vaish Director 69 K.M.Stone, Delhi Jaipur Highway, Omax Autos Limited- Sprocket Division Dr. T.N. Kapoor Director Dharuhera, Rewari (Haryana)- 122106 69 K.M. stone, Delhi -Jaipur Highway, Mr. Salil Bhandari Director Dharuhera, Rewari (Haryana)- 122106 Mr. Verinder Kumar Chhabra Director Bangalore Plant Mr. Atul Raheja Director Omax Autos Limited- Banglore Plant Lucknow Plant Mr. Lalit Bhasin Director Plot No. 6, Bomassandra- Jigani Link Road Omax Autos Limited - Lucknow Plant Mr. K.C. Chawla Whole Time Director Bomassandra, Banglore (Karnataka)- 560099 Tata Motors Vendor Park, Chinhat Industrial Area, Mr. Jatender Kumar Mehta Managing Director Deva Road, Lucknow-226019 Mr. Ravinder Mehta Managing Director Binola Plant Automax (A unit of Omax Autos Limited) Bawal Plant Audit Committee Delhi- Jaipur Highway, Village & P.O Binola Omax Autos Limited - Bawal Plant, Mr. Salil Bhandari Chairman Gurgaon (Haryana)- 122001 (Home Furnishing division) Plot No. 2, Sector-5, Bawal, Distt. Rewari, Dr. T.N. Kapoor Member Dharuhera Plant II Mr. Atul Raheja Member Haryana Indital (A unit of Omax Autos Limited) Mr. Jatender Kumar Mehta Member 69 K.M.Stone, Delhi Jaipur Highway, Gurgaon Plant Dr. R.C. Vaish Member Dharuhera, Rewari (Haryana)- 122106 Omax Autos Limited - Railway Division 38 KM Stone, Delhi-Jaipur Highway Auditors Manesar Plant Beharampur Road, Post-Office Khandsa M/s A. Kumar Gupta& Co., Omax Autos Limited- Manesar Plant Gurgaon-122001, Haryana Chartered Accountants, Ludhiana Plot No. 6, IMT, Sector- 3, Manesar Gurgaon (Haryana)- 122050 Internal Auditors M/s KRA & Associates M/s Singhi Chugh & Kumar M/s Doogar & Associates Secretarial Auditors M/s Chandrasekaran Associates, Registrar & Share Transfer Agent Bankers Company Secretaries M/s Link Intime India Private Limited Canara Bank State Bank of India (Formerly M/s Intime Spectrum Registry Limited) Citi Bank United Bank of India Senior Management Executives A-40, 2nd Floor, Naraina Industrial Area, Phase-II, Royal Bank of Scotland N.V. (India) HDFC Bank Limited Near Batra Banquet Hall, Deutsche Bank ICICI Bank Limited Mr. N.P. Singh ED (Human Resource) New Delhi- 110028 Yes Bank Limited The Hongkong & Shanghai Mr. V.K.Gupta ED (Commercial) Tel. No. +91-1-41410592-94 Kotak Mahendra Bank Limited Banking Corporation Limited Fax: +91-11-41410591 Tata Capital Limited Mr. Sharad Jain Chief Financial Officer E-mail: [email protected] Mr. Kishor Karnataki CEO (Commercial Vehicle) Mr. Manoj Mishra President (Passenger Car) 2 Annual Report 2009-10 3 Financial Highlights & Graphs Financial Highlights & Graphs Financial Performance Key Indicators: Rupees in Lacs Year ended March 2006 March 2007 March 2008 March 2009 March 2010 Year ended March 2006 March 2007 March 2008 March 2009 March 2010 Gross Profit Margin (%) 9.78 11.02 10.09 9.62 8.90 Gross Sales 71,069 84,840 88,103 98,095 97,495 Net Profit Margin (%) 3.42 3.38 2.17 0.65 1.63 Net Sales 58,610 69,944 73,044 83,435 87,558 Export Sales/Net Sales (%) 4.53 4.40 4.67 6.25 9.71 Export Sales 2,656 3,076 3,408 5,266 8,500 Gross Profit (PBITD) 5,730 7,710 7,367 7,991 7,789 Debt/Equity 0.74 0.52 0.69 1.13 0.90 Net Profit (PAT) 2,003 2,366 1,584 543 1,430 Earning Per Share (Rs) 8.84 12.17 7.53