Sadiq Allawati

Topics: Financial ratios, Financial ratio, Inventory Pages: 13 (4033 words) Published: December 25, 2012
Table of Contents
1.Executive Summary2
3.PEST Analysis3
4.Financial Analysis4
4.1Profitability Ratios4
4.2Liquidity Ratios8
4.3Turnover Ratios10
4.4Debt Ratios12
4.5Market value Ratios14
5.Conclusion & Recommendations15
7.Appendix: Ratios Calculations Formulae18

1. Executive Summary
The primary aim of this report is to study and analyze the financial performance of Voltamp Oman.The core of various financial ratio analyses is to understand the quantitative inter-relationship between various variables for a concluding evaluation against a 'benchmark' for analyzing trends emanating. The primary objective is to assist the top management with clear, concise and purpose-oriented decision-making in live business scenarios. The financial statements of Voltamp and two other companies that operate in the power sector and in the same region of Oman are compared over the data pertaining to 3 years. An analysis of the company is also performed using the ratio analysis tools pertaining to profitability, efficiency, liquidity, financial gearing, & investments. A conclusion and recommendation is also drawn at the end study for Voltamp and bench marking other two companies namely United power company and Sohar Power Company

2. Introduction
Voltamp Omanmanufactures a wide range of power distribution transformers and low voltage switchgears. The company has a strong in house design team and this drives the company amongst its competition. Despite the global meltdown, the businesses of transformers are going to continue to flourish in the region. In order to nurse its expansion plans the company the company is increasing its production capacity at the Rusayl plant. United Power Company was formed in 1995 and is the first private sector power plant in the GCC. The company is engaged in the management of electric utilities and operations. Their main power generation plant is in Manah and the main purpose of the company is to build, own, operate and transfer a power stations and Build, operate and transfer transmission setups to the Oman Government. Sohar Power Company SAOG possesses and operates the biggest power generation plan and water desalination plant in Oman.The company was incorporated in 2004 and over the years has gone to build and own a 585MW power generation and a seawater desalination plant in Sohar.The company went public in 2008 and has 35% of its equity listed in the MSM. 3. PEST Analysis

Sultanate of Oman’s Political landscape is very stable. The mass population of Oman supports its ruler Sultan Qaboos Economic Analysis
The Oil and gas sector plays a major role in the economy of the nation. Sultanate of Oman is famous for its exceptional Geographical structure. This excellent geographical place can be easily reached through road, air and water, and this attracts various multinational companies to invest in various sectors of the country especially in the high profit making energy sector Ministry of Oman supports the economic related activities which are geared for investments, by Introducing plans like reduction and standardization in the interest rates and taxes. An overall improvement in the economy is expected in the Government’s Eighth Development plan. Demand for more electrical power is expected due to the upcoming new businesses, technological centres and vast road network projects. Sociological Factors

Many new technologies have been introduced in the power generation sector, in order that nation will not depend only on its limited main natural resources, the oil and gas. Muscat , the Capital of Sultanate of Oman has got everything that can attract many people towards the country. This causes an increase in the population of Muscat when compared to other places of Oman. Thus the opportunity of power generation is high in the capital region. The Government is making all efforts to brand...
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