Final Cover.Cdr

Passionate about Performance OMAX AUTOS LIMITED

28th Annual Report .ippindia.com 2010-2011 Passionate about Performance 2010-2011 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 by Sobhagya & Printed at IPP/www Milestones

Passionate about Performance OMAX AUTOS LIMITED 69 KM Stone, Delhi Jaipur Highway, Dharuhera, Distt. Rewari, Haryana-122106

Established its Sixth Plant at Dear Shareholder, Bangalore having machining & sheet metal manufacturing Re: Green Initiative in Corporate Governance: Go Paperless facilities. As a part of the Green Initiative in Corporate Governance, the Ministry of Corporate Affairs (MCA), Government Established its Seventh Plant- Indital at Dharuhera. Started of India vide its Circular Nos. 17/2011 and 18/2011, dated April 21 and April 29, 2011 respectively, has allowed Exports to North America and companies to send official documents and Annual Reports Comprising of Notice of General Meeting(s), Audited Established its Fifth Plant- Europe with clients such as Financial Statements, Director's Report, Auditor's Report etc. as required under section 219 of the Companies Act, Sprocket division in Dharuhera. Delphi, Tenneco, Cummins, 1956, to their shareholders electronically. Bagged ISO/TS- 16949, ISO Piaggio etc. 14001 & OHSAS- 18001 It is a welcome move for the society at large, as this will reduce paper consumption, help to conserve forest cover Certification from UL India for all and allow public at large to contribute towards a green environment. It will also ensure prompt receipt of plants. A new phase of Kaizen 2004 communication and avoid loss in postal transit. activity- Various Training & HR activities started in all This is also a golden opportunity for every shareholder of the company to register his e-mail ID to receive 2003 Set up the ultra modern plants. communication through electronic mode. Paint Shop with latest technology from ABB Keeping in view the spirit of the circular issued by MCA, and to support the Green Initiative being environment India Ltd. 2001 friendly, we propose to send documents like the Notice convening the General Meeting(s), Financial Statements, Directors' Report, Auditors' Report and other communication, in electronic form, to the email addresses provided by you and made available to us by the Depositories. Bagged ISO 9002 2000 certificate from TUV Please note that from the FY 2011-12 onwards all the documents mentioned above will be sent through e-mail. If of Germany. you still intend to receive the copies of the documents in printed (hard copy) form, Kindly intimate the Company 2002 or RTA, accordingly a printed copy of the Annual Report will be sent to your registered address. 1997 In case you are agreed to receive the communication/ documents in electronic form: – If you are holding the shares in Demat form and you have not registered your email id with the 1999 depository participant or want to change your email id in our records, you are requested to register your e-mail id with the depository participant at the earliest and write to the company conveying your Established its Fourth Plant at acceptance to the proposal by mentioning Name of 1” Registered Holder, LF No./ Client ID etc. at Manesar with a capital outlay of Rs. [email protected]; and 200 million equipped with modern Established its third unit- Speedomax in Tool Room, R&D Centre with state of – If you are holding shares in physical form, you may please provide your e-mail id and write to the company Sidhrawali. the art machinery began production. conveying your acceptance to the proposal by mentioning Name of 1” Registered Holder, LF No./ Client ID Tied up with Honda- Siel Cars India Ltd. etc. at [email protected] and New Holland Tractors Ltd. for supply of Body and Axle parts. Further, please note that the full text of these reports will also be made available on our website: http://www.omaxauto.com 1989 Let us be part of the 'Green Initiative' taken by MCA and your Company's desire to participate in such initiative. Diversified its customer base by The first unit started in roping in Carrier Aircon Ltd. in Air Thanking you Dharuhera as an ancillary 1985 Conditioning Components. supplier to Hero MotoCorp. 1988 Yours sincerely, for Sheet Metal and Tubular Welded components. 1986 For Omax Autos Limited Jatender Kumar Mehta 1983 Established its second unit (Managing Director) Automax in Gurgaon. Omax Autos Limited went public with more than 7500 shareholders. The year marked the beginning of the name "Omax Autos Limited". Passionate about Performance

Started using Pipe Natural Gas (20,000 SCM per day) from GAIL India at Dharuhera and Manesar Plants. A major step for power and fuel cost reduction and contributing Commercial production started to Greener Environment. at Lucknow plant. Reached the remarkable heights of 28 years of manufacturing Set up tenth plant at Bawal to and rendering quality products & services to customers. manufacture Home Furnishing products. Installed 100 kWp Solar PV 2011 Established its Ninth Plant at System at Dharuhera & Lucknow to manufacture Manesar plant for captive use. chassis for commercial vehicles for Tata Motors. Established new Corporate 2010 Office in Gurgaon.

SAP rolled out in all Eight plants 2008 across India.

2006

2009

2007

2005 Tied up with IKEA for supply of Metal Houseware Products. Recognition granted for In-house R&D unit at Manesar by DSIR. Automax, Gurgaon-Sohna Rolledout dedicated facility at Gurgaon for Road Plant merged with Binola manufacturing various parts and components for Plant. Indian Railways. Established its Eighth Plant at Binola, Gurgaon for catering export clients.

Corporate Information 2 Main Products at Omax 11 Financial Highlights & Graphs 4 Message from Managing Director 12 Corporate Profile 6 Our Major Customers 14 Corporate Social Responsibility 6 Notice 15 Vision Mission Statement 7 Directors' Report with Annexures 20 Aspirations 7 Management Discussion & Analysis 27 Our Strength- Our Employees 8 Corporate Governance Report 32 Facilities and Process Capabilities 9 Auditors' Report 49

Contents Awards and Testimonials 10 Financial Statements 52

Annual Report 2010-11 1 Corporate Information Corporate Information Passionate about Performance

Chairman Emeritus: Corporate Office: Sidhrawali Plant Plot No. B-26, Institutional Area, Speedomax (A unit of Omax Autos Limited) Dr. Brijmohan Lall Munjal Sector 32, Gurgaon (Haryana) - 122001 64 K.M.Stone, Delhi- Jaipur Highway, Village Sidhrawali, Gurgaon (Haryana)-123413 Board of Directors Registered Office & Dharuhera Plant: Mr. Suresh Mathur Chairman Omax Autos Limited Dharuhera Plant III Dr. Ramesh Chandra Vaish Director 69 K.M.Stone, Delhi Jaipur Highway, Omax Autos Limited- Sprocket Division Dr. Triloki Nath Kapoor Director Dharuhera, Distt. Rewari (Haryana)- 122106 69 K.M. stone, Delhi -Jaipur Highway, Mr. Salil Bhandari Director Dharuhera, Distt. Rewari (Haryana)-122106 Mr. Verinder Kumar Chhabra Director Bangalore Plant Mr. Atul Raheja Director Omax Autos Limited Lucknow Plant Mr. Lalit Bhasin Director Plot No. 6, Bomassandra- Jigani Link Road Omax Autos Limited Mr. Krishan Chand Chawla Whole Time Director Bomassandra, Banglore (Karnataka)- 560099 Tata Motors Vendor Park, Chinhat Industrial Area, Mr. Jatender Kumar Mehta Managing Director Deva Road, Lucknow (U.P.)-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 Dr. Ramesh Chandra Vaish Chairman Gurgaon (Haryana)- 123413 (Home Furnishing division) Dr. Triloki Nath Kapoor Member Plot No. 2, Sector-5, Bawal, Distt. Rewari, Mr. Atul Raheja Member Dharuhera Plant II Haryana-123501 Mr. Verinder Kumar Chhabra Member Indital (A unit of Omax Autos Limited) Mr. Salil Bhandari Member 69 K.M.Stone, Delhi Jaipur Highway, Railway Division Mr. Jatender Kumar Mehta Member Dharuhera, Distt. Rewari (Haryana)- 122106 Omax Autos Limited - Railway Division 1 KM, Piyala Road, Village- Sikri, Manesar Plant Distt. Faridabad (Haryana)-121004, Auditors Omax Autos Limited M/s A. Kumar Gupta & Co., Plot No. 6, Sector- 3, IMT Manesar Chartered Accountants Gurgaon (Haryana)- 122050

Internal Auditors M/s KRA & Associates Chartered Accountants M/s Singhi Chugh & Kumar Chartered Accountants Registrar & Share Transfer Agent Bankers M/s Doogar & Associates M/s Link Intime India Private Limited Canara Bank United Bank of India Chartered Accountants (Formerly M/s Intime Spectrum Registry Limited) Citi Bank N.A. HDFC Bank Limited A-40, 2nd Floor, Naraina Industrial Area, Phase-II, Royal Bank of Scotland N.V. ICICI Bank Limited Near Batra Banquet Hall, Deutsche Bank The Hongkong & Shanghai Secretarial Auditors New Delhi- 110028 Yes Bank Limited Banking Corporation Limited M/s Chandrasekaran Associates, Tel. No. +91-11-41410592-94 Kotak Mahendra Bank Limited Standard Chartered Bank Company Secretaries Fax: +91-11-41410591 Tata Capital Limited DBS Bank Limited E-mail: [email protected] State Bank of India Induslnd Bank Ltd. Senior Management Executives Mr. P.K. Bansal President & CFO Mr. Naresh Chand Kaushik President & CEO (Two Wheeler) Mr. Manoj Mishra President & CEO (Passenger Car) Mr. Kishor Karnataki President & CEO (Commercial Vehicle) Mr. J.C. Jhuraney Chief Executive (Corporate HR) Mr. N.P. Singh Executive Director (Railway Division)

2 Annual Report 2010-11 3 Corporate Information Corporate Information Passionate about Performance

2 Annual Report 2010-11 3 Financial Highlights & Graphs Financial Highlights & Graphs Passionate about Performance

Financial Performance Key Indicators

Rupees in Lacs Year ended March 2007 March 2008 March 2009 March 2010 March 2011 Year ended March 2007 March 2008 March 2009 March 2010 March 2011 Gross Profit Margin (%) 11.02 10.09 9.62 8.90 7.63 Gross Sales & Other Income 84,840 88,103 98,095 97,495 132,901 Net Profit Margin (%) 3.38 2.17 0.65 1.63 1.83 Net Sales & Other Income 69,944 73,044 83,435 87,558 117,222 Export Sales/Net Sales (%) 4.40 4.67 6.25 9.71 9.14 Export Sales 3,076 3,408 5,266 8,500 10,711 Gross Profit (PBITD) 7,710 7,367 7,991 7,789 8,943 Debt/Equity 0.52 0.69 1.13 0.90 0.96 Net Profit (PAT) 2,366 1,584 543 1,430 2,143 Earning Per Share (Rs) 12.17 7.53 3.17 6.64 9.95 Net Worth 13,333 14,567 14,561 16,139 17,878 Dividend Per Share (Rs) 2.25 1.50 1.00 1.50 2.00 Capital Employed 20,262 24,578 30,962 30,687 34,983 Book Value Per Share (Rs) 62.34 68.11 68.08 75.46 83.59 Fixed Assets (Net block) 26,804 31,769 33,390 35,422 33,523

GROSS SALES & OTHER INCOME EXPORT SALES/NET SALES (%) GROSS PROFIT BOOK VALUE PER SHARE

132,901 9.71 9.14 8,943 83.59 7,991 7,710 7,789 7,367 75.46 98,095 97,495 68.11 68.08 6.25 84,840 88,103 62.34

4.67 4.40

2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

FIXED ASSETS (NET BLOCK) NET WORTH NET PROFIT EARNING PER SHARE

17,878 35,422 12.17 33,390 33,523 16,139 31,769 14,567 2,366 2,143 14,561 9.95 26,804 13,333

1,584 7.53 6.64 1,430

3.17 543

2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

4 Annual Report 2010-11 5 Financial Highlights & Graphs Financial Highlights & Graphs Passionate about Performance

Financial Performance Key Indicators

GROSS SALES & OTHER INCOME EXPORT SALES/NET SALES (%) GROSS PROFIT BOOK VALUE PER SHARE

132,901 9.71 9.14 8,943 83.59 7,991 7,710 7,789 7,367 75.46 98,095 97,495 68.11 68.08 6.25 84,840 88,103 62.34

4.67 4.40

2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

FIXED ASSETS (NET BLOCK) NET WORTH NET PROFIT EARNING PER SHARE

17,878 35,422 12.17 33,390 33,523 16,139 31,769 14,567 2,366 2,143 14,561 9.95 26,804 13,333

1,584 7.53 6.64 1,430

3.17 543

2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

4 Annual Report 2010-11 5 Corporate Profile Passionate about Performance

Vision Omax Autos Limited was incorporated in 1983 with a vision to emerge as a niche player in Auto Industry and has grown “Highly customer oriented, humane and system run global exponentially into truly diversified and globalised corporate entity since incorportaion. In the last Twenty-Eight years of organisation with a concern for society“ 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 Company enjoys a Gross Turnover Rs. 1,313.61 Mission crores, spanning its horizon and providing fulfilled management. The group enjoys huge reserves of goodwill that has “We are a dedicated, proactive, loyal & accountable group of led to some of the biggest names in the corporate world putting their trust in us and constantly strives to provide people with a quest for excellence through latest technology, products and services that enhance the quality of life and work, and to address a gamut of human needs. people empowerment and brand equity to produce world class products by adopting best business practices and ethics.”

OMAX Autos Ltd is primarily in the business of manufacturing The Company has also made significant major changes namely – IMS Policy auto components. Omax is one of the largest manufacturers of – Exploring projects in Hydro, Solar & Wind as Renewable Sheet Metal parts, Machined, Tubular, Electroplated & Painted Source of Energy and have: “In line with our Vision & Mission, we remain committed for total components, Welding Facilities with integrated world-class a) Successfully commissioned 100 kWp Capacity Solar Roof satisfaction of our customers, associates and society at large, assembly lines. Top Photovoltaic System at Manesar and Dharuhera through excellence in quality, value for money, on time deliveries With growing opportunities & enhanced experience base, Omax plants for captive use. and continual improvement. While achieving this, we remain committed to comply with legal and other requirements relating has strengthened horizontally. In the last 28 years the company has b) Started using Pipe Natural Gas (20,000 SCM per day) to Environment, Health & Safety for prevention of pollution, ill- widened its customer base and products by entering into 4-wheeler from GAIL India at Dharuhera and Manesar plants. industry, producing for Indian Railways and producing home health & injury". accessories apart from 2-wheeler industry. At present Omax is not c) A major step for Power and Fuel cost reduction & Core Values only in domestic market, but have achieved break through globally contributing to Greener Environment. through IKEA, TENNECO, PIAGGIO & TOYOTA. – Successfully running commercial production of Chassis of • Human Dignity • Honesty • Commitment • Sincerity Though the Company has moved towards new frontiers in the Commercial vehicles for TATA Motors Limited at Lucknow last 28 successful years, yet it nourishes old relationships with plant. undying passion and perseverance. With 10 plants as facilities, a – Shifted Railway division from Gurgaon to Faridabad to strong infrastructure base and enlightened human resource we enhance Capacity for manufacturing parts and components have reached the new horizons of success. to Indian Railways. Aspirations Through continuous and aggressive strategy building and – Successfully commenced commercial production at Bawal disciplined execution of the same it has been possible to attain plant to Manufacture Home Furnishing Stainless Steel high level of growth and experience. The key features of the products. strategy are – Many initiatives have also been initiated last year like DNA To build a world class Company through reliability and a) To make major improvements towards customers' change & Operational Excellence (OPEX) : satisfaction. – DNA Change is a concept of building positive environment be a great place to work. b) To develop a competitive edge - to optimize its cost and move through collaborative processes in the different teams to up in value chain. develop new ideas, enhancing their engagement and c) To progress through a strong base laid on in depth research interaction for the growth of the organization. and development. – OPEX is "A Journey towards Excellence in Customer Our vision is to make our Company the best in class in Satisfaction, Employee Involvement & Business Results". whatever we do, globally. The products and services we offer should be comparable to the best in the world, Corporate Social Responsibility our business process and systems should set

• Solar Power Plants installation benchmark for others. We should earn the respect of our competitors and be loved by our stakeholders. • Waste heat recovery

• Energy conservation through LED, PNG usage Our Company should be the most preferred company • Plantations to work for, for any employee. He should feel like a • Blood donation camps owner, be able to live his dream, fulfill all his

• Health Check-up professional goals and enjoy while doing so.

6 Annual Report 2010-11 7 Corporate Profile Passionate about Performance

• Solar Power Plants installation benchmark for others. We should earn the respect of our competitors and be loved by our stakeholders. • Waste heat recovery

• Health Check-up professional goals and enjoy while doing so.

6 Annual Report 2010-11 7 Our Strength-Our Employees Facilities and Process Capabilities Passionate about Performance

"The quality of an organization can never exceed the quality of the minds that make it up”. The way a team plays as a whole determines its success. There may be a bunch of individual stars in the sky, but only when put together that it forms a constellation worth a dime. Omax, as an organization, meets the talent and organizational needs of the widening global corporates by pooling in new talent group, nurturing employees and managing employee relationships. The steps involved in achieving these targets are as follows: RECRUITMENT AND TRAINING We recruit individuals with adequate knowledge and a passion to excel in business based not only on academic excellence but also on a proactive approach. We have always believed that a sustained focus on technology, systems and human resources, holds the key to success. Therefore, at Omax, training needs are identified periodically for various levels and all the new technical recruits are trained in technical training center on welding, pressing machining and other technical fields and then placed in the concerned departments. • Amongst top three companies in Automotive Stamping and two wheeler & Commercial vehicle Chassis EMPLOYEE ENHANCEMENT THROUGH INVOLVEMENT manufacturing- (Process 85k Tons Steel pa) The Company encourages employees' feedback for enhancing improvement in process and alignining employee goals with business objectives. It helps in building mutual trust and foster teamwork. At workman level, for example, expansion of canteen • Largest Sprocket manufacturing capacity (11 Million PA) in South East Asia. facilities with better services, safe working environment were some of the initiatives taken during the year. • Largest Tri Nickel Chrome Plating facility (120 Million DM2) A series of initiatives were taken up at each location to improve employee engagement. These includes communications, DNA • Largest & full spectrum welding facility in India with robots & 800 MIG welding sets (100 Km welding capacity per day) change, team building and creation of cross-functional teams to enhance job content, work environment and employee empowerment. • Largest consolidated Piston Rod manufacturing facility with super finishing capability catering to Europe & United States. EMPLOYEE MOTIVATION We motivate our employees by awarding them with various awards like long-term awards, attendance awards, customer ONE STOP SOLUTION: representative winner award. Various recreational activities are conducted for employees and their families, birthday greetings are • Designing sent across to the employees, a quarterly magazine is published for and by employees to encourage their creativity and to share their personal and academic excellence which acts as value addition for the company named as Omax Autos Limited "Infomax". • Automotive Stampings This helps in promoting the feeling of oneness. • Two Wheel & Commercial Vehicle Chassis manufacturing HR MISSION • Machined Parts – Sprockets/ Piston Rods/ Oil Pumps/ Transmission Shafts “To promote and sustain the culture of developing world class leaders for value addition in every sphere of original activities while fulfilling employees professional and personal satisfaction.” • Full spectrum welding process- Robotic MIG, spot and friction • Painting & Tri Nickel Chrome Painting • Supporting infrastructure – Tool Room/ NABL Acc. Met Labs/ Standard Room etc.

8 Annual Report 2010-11 9