General Information

~General~
~informatio
n~
Meghmani Finechem Ltd.
1
BACKGROUND OF THE COMPANY

It was in 1986, when Gujarat Industries was established as a
partnership firm in Gujarat, India to manufacture pigments. High
productivity and profitability transformed Gujarat Industries to a
joint stock company, under the name of Meghmani Organics
Limited, by 1995. Since then Meghmani Organics Limited has
diversified its business interests to include a range of pesticides
and other pigments products as well.
Today, Meghmani Organics Limited is leading manufacturer of
pigments and pesticides products in the country and is the
recipient of several prestigious awards in recognition of its
outstanding business performance.
Meghmani group of industries today is one of the leading
exporters of dyes and pigments from the India. Meghmani group
of industries consist of:-

2
HOLDING COMPNEY
Related Companies
Magmani organics limited
Maghmani finechem limited
Ashish Chemicals
Meghmani Pigments
Meghmani Industries Limited
Matangi Industries
Meghmani Dyes &

Intermediates & Meghmani
Industries Limited
Matangi industries
Mansi chemicals

3
Other related company
Meghmani Europe BVBA

Meghmani Energy Ltd
Meghmani Organics Inc. USA
PT Meghmani Indonesia
Chemtech Ltd
Ashish Chemicals
Ashish Chemicals (EOU)
Alpanil Industries
Meghmani Infrastructure
Vidhi Global Chemical Ltd
MFL, DAHEJ.

4
In 2008, MOL set up a subsidiary chlor-alkali project at

Dahej with an investment of US$125 million with part investment
made by the International Finance Corporation Limited to
manufacture caustic soda/chlorine under Meghmani Finechem
Limited banner.
The plant, with a manufacturing capacity of 1,10,000

tpa of caustic soda is located at Dahej in Gujarat. The unit also
houses a 40 MW captive power plant. The project has been
funded with equity of Rs 185 crore and a debt of Rs 370 crore
provided by a consortium of State Bank of India.
Sited in a 161-acre piece of land in Dahej, the

proposed plant will be set up under a special purpose vehicle
(SPV), Meghmani Finechem Limited (MFL), employing the latest
membrane cell technology to provide a ready and captive source
of basic chemicals as the Group consumes significant quantities
of caustic soda, chlorine gas and derivatives of chlorine gas for
our pigments and agrochemicals operations.
FORM OF ORGANISATION
Meghmani Finechem Ltd. is the public limited company.
Project description

5
Meghmani Organics Limited (MOL or the sponsor), a manufacturer

of specialty chemicals in Gujarat, India has set up a new company
- Meghmani Finechem Limited (MFL or the company), which will
construct and operate a 110,000 tons per annum (tpa) chlor-alkali
plant together with a 40MW captive power plant, both at a
greenfield site at Dahej, Gujarat. The proposed project supports
the efforts of MOL to improve its competitiveness by partial
backward integration of its operations while using environmentfriendly membrane cell technology. The chlor-alkali plant is
expected to become operational in CY2009.
MOL views MFL as the vehicle for the future investments and
growth which will build on MOLs technical expertise and existing
operations. After the project, which represents Phase I, is
complete, the shareholders hope to move into Phase II, which
would focus on downstream chlorine derivatives such as PVC,
ECH, mono-chloro acetic acid, cyanuric chloride, aluminum
chloride, calcium chloride, methyl chloride, hydrogen peroxide
and others.

6
Project sponsor and major shareholders of Project

Company
MOL, the project sponsor (initially named Gujarat Industries
Limited) was established in 1986 by Mr. Jayanti Patel, Mr. Ashish
Soparkar, Mr. Natu Patel, Mr. Ramesh Patel and Mr. Anand Patel
(known as the Promoters). MOL established its first manufacturing
facility for pigments at Vatva in Gujarat. Subsequently, three
other plants were also established in Gujarat: in 1995 an
agrochemical plant in Chharodi, in 1998 a pigment plant in Panoli,
and in 2003 an agrochemical plant in Ankleshwar. MOLs products
are divided into two segments, each accounting for about half of
its sales:
- agro-chemicals and pesticides manufactured in the Ankleshwar

and Chharodi plants and
- color pigments, manufactured in Vatva and Panoli plants. For the
fiscal year ended March 31, 2007, MOL reported sales of $108
million and net income of about $9 million.
MOL is 48.8% owned by the controlling shareholders and their

families. The rest is owned by the public and by private equity
investors through Singapore Depositary Shares (30.1%) and
7
through direct listing in Bombay Stock Exchange (21.1%). MOL

first became a publicly listed company on the Singapore Stock
Exchange in 2004 and was listed on the NSE/BSE in June 2007.
Total project cost and amount and nature of IFC's

investment
The project, which is expected to cost about $125 million, will be
financed with about $40-42 million in equity and $82-85 million in
long-term debt. IFC is to provide financing of up to $30 million,
including about $8-10 million in equity and up to $20 million in
debt.

8
Location of project and description of site

MFL will construct a 110,000 tpa chlor-alkali plant and a 40 MWH
captive power plant at a Greenfield site at Dahej, Gujarat. The
success of the chlor-alkali plant will largely depend on the
economic availability of salt and power. Dahej is one of the largest
producers of salt in Gujarat. Coal, the key source of fuel for the
captive power plant, can be easily imported through Dahej port.

9
Anticipated development impact of the project

The
project
will
help
establish
international
standards
of
environmental and social performance for MFLs facilities using

the environmentally friendly membrane cells technology. The
benefits can be expected to have a positive demonstration effect
on its competitors, thus encouraging other Indian chemical
companies to improve competitiveness in the global markets and
at the same time adopt the modern technology and environmentfriendly operating standards. In addition, the project is expected
to have the following measurable developmental benefits:
- Once operational, the project is expected to create about 500

new jobs on permanent basis which would be available for locals.
Indicator: number of jobs at the plant starting at 2010.
- During construction period, the project is expected to create 200

to
1000
temporary
construction
jobs
depending
on
the
construction phase. Indicator: number of construction workers

employed 2009.
- The project generate downstream economic impact in the local

economy as the company will planning to source its main
feedstock (raw salt) from local producers, primarily SMEs, in Dahej
10
area. Indicator: value of raw materials sourced from local

producers.
Environmental and social issues - Category B

This is a Category B project according to IFCs Environmental and
Social Review procedures because a limited number of specific
environmental and social impacts may result which can be
avoided or mitigated by adhering to generally recognized
performance standards, guidelines or design criteria. Mitigation
measures for the potential environmental and social impacts are
identified and incorporated in the Environmental and Social Action
Plan (ESAP).

11
VISION AND MISSION STATEMENTS

Vision:
To become a global leader in the chemicals and allied
industries
Mission:
We will lead by:Empowered work environment speed of decision making
honoring
commitments
focusing
on
result
innovation
and
efficiency.
Values:
A carrying member of the society an equal opportunity
provide fair to our stakeholder and a preferred source for our
invaluable customers.
INVESTMENT IN PLANT AND MACHINARY

The investment in plant & machinery is Rs. 555 crores.
[US$191.3million]

12
MFL BOARD OF DIRECTOR

PROFILE
PHOTO
Mr Jayanti Meghjibhai Pate1 is the Executive
Chairman of our Company. Together with our
Managing Director Mr Ashish N. Soparkar, our
Managing Director Mr Natwarlal M. Pate1 and our
Executive Directors Mr Ramesh M. Pate1 and Mr
Anand I. Patel, he was a co-founder and partner of
MIS Gujarat Industries, which was subsequently
converted to our Company in 1995. He currently
oversees the international marketing of our
Company and is responsible for all major policy
decisions.
Mr Jayanti M. Patel has more than 29 years
experience in the dyes and Pigments industry, and
more than 10 years experience in the Agrochemicals
industry. Mr Jayanti M. Pate1 was appointed as our
Executive Chairman since the incorporation of our
Company in 1995.
Mr Jayanti M. Pate1 holds a Bachelors of Chemical
Engineering degree fkom Maharaja Sayajirao
University, Baroda.
Mr Ashish Natwarlal Soparkar is the Managing
Director of our Company. Together with our Executive
Chairman Mr Jayanti M. Patel, our Managing Director
Mr Natwarlal M. Pate1 and our Executive Directors Mr
Rarnesh M. Pate1 and Mr Anand I. Patel, he was a cofounder and partner of M/s Gujarat Industries, which
was subsequently converted to our Company in
1995. He was responsible for pioneering the export
division of our Company. He currently oversees the
corporate affairs and finance matters of our
Company.
Mr Ashish N Soparkar, has more than 29 years
experience in the dyes and Piments industry, and
industry. Mr Ashish N soparkar was appointed as our
Managing Director since the incorporation of our
Company in 1995.

13
Mr Ashish N. Soparkar holds a Bachelors of Chemical

Engineering degree fkom Maharaja Sayajirao
University of Baroda.
Mr Natwarlal Meghjibhai Pate1 is the Managing
Chairman Mr Jayanti M. Patel, our Managing Director
Mr Ashish N. Soparkar and our Executive Directors
Mr Ramesh M. Pate1 and Mr Anand I. Patel, he was a
co-founder and partner of M/s Gujarat Industries,
which was subsequently converted to our Company
in 1995. He currently oversees the technical matters
of the Agrochemicals divisions, as well as the
international and domestic marketing of our
Agrochemical products.
Mr Natwarlal M Patel, has more than 27 years
experience in the dyes and Pigments industry, and
industry. Mr Natwarlal M Pate1 was appointed as our
Managing Director since the incorporation of our
Company in 1995.
Mr Natwarlal M. Pate1 holds a Masters of Science
degree from Sardar Pate1 University Gujarat.
Mr Ramesh Meghjibhai Pate1 is the Executive
Chairman Mr Jayanti M. Patel, our Managing Directors
Mr Ashish N. Soparkar and Mr Natwarlal M. Pate1 and
our Executive Director Mr Anand I. Patel, he was a
co-founder and partner of M/s Gujarat Industries,
in 1995. He was appointed as Whole time Director in
1995 and redesignated as Executive Director in
2004. He is currently in charge of overseeing
purchases made by our Company (including
domestic purchases and global imports) and is
responsible for all liaisons between our Company and
government authorities or other regulatory bodies.
Mr Ramesh M. Pate1 has 27 years experience in the
Pigments Industry and 9 years' experience in the
Agrochemicals Industry. He was appointed as our
Executive Director since the incorporation of the
Company in 1995.
Mr Ramesh M. Pate1 holds a Bachelors of Arts degree
from Saurashtra University.

14
Mr Anand Ishwarbhai Pate1 is the Executive Director

of our Company. Together with our Executive
Chairman Mr Jayanti M. Patel, our Managing Directors
Ashish N. Soparkar and Mr Natwarlal M. Pate1 and
our Executive Director Mr Ramesh M. Patel, he was a
co-founder and partner of MIS Gujarat Industries,
in 1995. Mr Anand I. Pate1 was appointed as Whole
time Director in 1995 and redesignated as Executive
Director in 2004. He currently oversees the
manufacturing of Pigments as well as the domestic
marketing of Pigments.
Mr Anand I. Pate1 has 20 years experience in the
Pigments Industry. Mr. Anand I Patel, was appointed
as our Executive Director since the incorporation of
our Company in 1995.He holds a Bachelor of Science
degree from the Gujarat University.
Mr. Chinubhai Shah, 69 years, was appointed as a
Director of our Company on April 13,2000 and has
been on our Board since then. He holds a Masters
degree in Arts and a Masters degree in Law. He also
has a Diploma in Labor Practice and Diploma in
Taxation practice, both from Gujarat University. He is
a fellow member of the Institute of Company
Secretaries of India and fellow membership for life
was also conferred on him by All India Management
Association, New Delhi. Mr. Chinubhai Shah was
twice elected as the President of the Institute of
Companies Secretaries of India. He was also elected
as the President of All India Management
Association. He was a visiting professor and a
member of the Board of Governors of the Indian
Institute of Management, Ahmedabad. He was the
President of the Gujarat Chamber of Commerce and
Industry and was also a member of the Comvanv
Law Advisow Committee in the Government of India.
He is presentiy a-member of th;secondary Market
Advisory Committee of SEBI. He has had more than
42 years experience in the areas of management,
finance and accounting. Mr. Chinubhai Shah headed
Torrent Pharmaceuticals and Torrent Exports Limited
of Torrent Group as Executive Director in charge of
finance and Corporate affairs from 1991 to 1998.
From 1999 to 2000 he was the Managing Director of
Ahmedabad Electricity Co. Limited (presently Torrent
Power Limited). His last assignment was with Torrent
Investment Limited as Executive Director in charge
of finance matter. He is on the Board of Directors of
leading business groups like Adani, Cadila, Nirma,
Tata and others.

15
Mr. Balkrishna Thakkar, 69 years, was appointed as a

Director of our Company on April 13, 2000. He holds
a Bachelor of Commerce degree from Gujarat
University and is also a fellow member of the
Institute of Chartered Accountants of India. Since
1974, after qualifying as Chartered Accountant, he
started his own practice. He is currently practicing as
a Chartered Accountant in the name and style of
Ballcrishna Thakkar & Co., a sole proprietorship that
he founded in 1975, and his primary practice areas
are audit and taxation.
Mr. Jayaraman Vishwanathan, 49 years, was

appointed as a Director of our Company on July
17,2003. He has more than 22 years of experience in
industry, banking, private equity and entrepreneurial
related assignments, both in India as well as in other
countries. He was the Director and the Head of
Direct Investments in Jardine Fleming India Securities
Limited ("JF Electra") (now Electra Partners Asia
Limited "Electra Asia") from December 1995 to July
1999 and has rejoined Electra Partners in February
07,2005. He holds a Bachelors of Commerce
(Honours) degree from the University of Delhi, India.
He is also a qualified Chartered Accountant and also
a Management Accountant from the Chartered
Institute of Management Accountants, London,
United Kingdom.
Mr. Foo Meng Tong, 64 years, was appointed as a
Director of our Company on March 5, 2004. Prior to
joining the private sector in 1993, he was with the
Economics Development Board ("EDB") for 26 years
from 1963 to 1993. His last appointment was as
Director (Industry) and concurrently General
Manager, EDB Investment Pte. Limited where he was
involved in industrial planning and development as
well as venture capital investment. From 1994 to
1997, he served as the Ambassador in Paris,
accredited to France and concurrently to Spain,
Portugal, Switzerland (from 1994 to 1996) and Israel
(from 1996 to 1997). He holds a Diploma in Electrical
Engineering from Singapore Polytechnic. He was
awarded the Public Administration Medal (Silver) in
1986 and the French Government conferred him as a
Chevalier in the Order of the Palmes Academiques in
1998. He is a fellow member of the Institute of
Engineers in Singapore.

16
Mr. Pankaj Shah, 59 years, was appointed on March

28, 2005, as an Additional Director on our Board.
Prior to joining our Board, he served for 3 1 years
primarily in the senior executive positions in
business management, marketing and operations.
He served as Chairman and Chief Executive of Du
Pont India Limited from 1998- 2004 and as Regional
Managing Director of Du Pont Automative business
at Seoul, South Korea from 1996- 1998. He holds a
Bachelors of Science (Chemical Engineering) degree
from Banaras Hindu University, India. He also holds a
Master of Science (Chemical Engineering) degree
from University of South Western Louisiana and also
Masters in Business Administration from the
University of Northeast Louisiana USA.
AWORD AND ACHIVEMENT OF MEGHMANI

Year
Award

17
19941995
National export award from the President, Government

of India
Award from Basic Chemicals, Pharmaceuticals &
Cosmetics Export Promotion Council (CHEMEXCIL),
Mumbai
Certificate of merit for outstanding export performance
from the Ministry of Commerce, Government of India
19951996
19961997
Award for excellent export performance from the

Government of Gujarat
National export award from the President, Government
of India.
Export award from Gujarat Dyestuffs Manufacturers'
Association (GDMA), Ahmedabad
Award for excellent performance in exports by the
Federation of Indian Export Organization, Government
of India
Trophy for export performance from GDMA, Ahmedabad
19971998
Certificate of merit for outstanding export performance

from the Ministry of Commerce, Government of India
Award for direct export of self manufactured dyes by
GDMA, Ahmedabad
20002001
Award for export performance from GDMA, Ahmedabad

Award for excellent performance from CHEMEXCIL,
Mumbai
Award for appreciation of export performance from
GDMA, Ahmedabad

18
20022003
20022003
20032004
20032004
20042005
2005
Six Sigma award from General Electric

Award in appreciation of export performance from
GDMA, Ahmedabad
"First Award" for outstanding export performance from
Chemexcil, Mumbai
Certificate of Excellence - the Niryat Shree award in
the Chemicals, Drugs, Pharma and Allied products Non-SSI Category, from the Federation of Indian
Export Organisations (FIEO) for its outstanding
export performance
Certificate of Excellence - the Niryat Shree award in
the Chemicals, Drugs, Pharma and Allied products Non-SSI Category, from the Federation of Indian
Export Organisations (FIEO) for its outstanding
export performance
Silver Trophy - the Niryat Shree award in the
Chemicals, Drugs, Pharma and Allied products - Non-SSI
Category, from the Federation of Indian Export
Organisations (FIEO) for its outstanding export
performance
Certificate of Appreciation for Safety Records rom the
Gujarat Safety Council (Ankleshwar site)
SIAS Investors Choice Award for the most transparent
company
2006
SIAS Investors Choice Award for the most transparent

company

19
MLESTONES SINCE INCEPTION

Year
1995
Description
MOl company set up its faculty at chharodi, ahemdabad,
1996
to manufacture insecticides, agrochemicals

J F Electric (Mauritius) limited (JFE), now known as
electra partners Mauritius limited invested Rs.200
million
Along with pisces pte limited investing Rs.180
million and our promoters investing Rs.57 million.
1996
Company expanded its pigment business by purchasing
1998
land at GIDC, panoli near ankleshwar.

Commencements of commercial production of pigment
1999
blue at the panoli plant.

Company was awarded the ISO 9001-2000 certification
for
the
achievement
of the
quality
assurance
in
production, purchasing, marketing and distribution in

2003
relation to vatva, panoli and chharodi plant.

Comapney acquired assets of unit II from rallis india
limited(Rallis) situated on plot no. 5001/B at GIDC ankles
war for expansion o agrochemical production and
started commercial production of agrochemicals at the

20
2006
ankleshwar
Expansion of cyper methric acid chloride (CMAC) plant
at the ankleshwar unit with an investment of Rs. 180
million and commencement of commercial operation of
2008
the palnt.
MOL company set up meghmani finechem ltd at dahej.
PRESENT PROFILE
COMPANY NAME
MEGHMANI FINECAHEM
PLANT LOCATION:-
LIMITED
Plot no. CH1/CH2,
Dahej GIDS industrial estate
Opp. Luna chemical , dahej
Dist. Bharuch 392 130
Gujarat, india.
Plot no. CH1/CH2,
REGISTERED OFFICE:-
Dahej GIDS industrial estate

Opp. Luna chemical , dahej
Dist. Bharuch 392 130
BOARD OF DIRECTORS:-
Gujarat, india.
Mr. Jayanti M Patel
Mr. Ashish N Patel
Mr. Natwarlal M patel
Mr. Ramesh M Patel
Mr. Anand I Patel
Mr. Chinubhai R Shah
Mr. Balkrishna T Thakkar
ICICI BANK
PRINCIPAL BANKERS:-
SBI BANK
BANK OF MAHARASTRA
BANK OF INDIA
21
FUTURE EXPANSION PLANS

In near future maghmani group will invest around Rs.200
crore for expansion for their business at dahej SEZ Ltd.
PERFIRMANCE GRAPH 2010-11
SALES (IN MT)

10000
9000
8000
7000
6000
SALES (IN MT)
5000
4000
3000
2000
1000
0
MAY JUN
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
PRESENT MANPOWER STATUS

PERMENANT
TRAINEE
STAFF
22
CONTRACT
TOTAL
280
11
259
550
ORGANIZATION STRUCTURE
BOARD OF
MANAGING
EXECUTIVE
DIRCTOR
DEPARTMENTAL
V.P
GENRAL
MANAGER
DEPARTMENTAL
HODs
PRODUCTIO
N
POWER
FINANCE
HRD & AMD
MARKETING
PLANT
PURCHASE
MECHANICA
L
QCD
INSTRUMEN
T
ELECRICAL
SAFETY
TYPES OF COMMUNICATION CHANNEL

23
Communication channel refers to the medium or way

through which different department continuously contract with
each for smooth running of organization activities.
In MFL, both horizontal and vertical communication channel
used in both ways formally and informally.
Medium of exchange:
Notice board
Orally
Telephonic
E-mail
PRESENT PRODUCTION MIX

MAIN PRODUCTION
BY PRODUCTION
CAUSTIC SOD LYE 48%

(NaOH)
CAUSTIC SODA FLAKES 98.5%
(NaOH)
LIQUID CHLORINE
(CL2)
HYDROGEN
(H2)
HYDROCHLORIC ACID
(HCL)
SODIUM HYPOCHLORIDE
(NaOCL)
COMPARATIVE SCENARIO
The product manufactured by maghmani finechem Ltd. Are
available in domestic market as well as foreign market and this
24
achieved through an extensive distribution network of the branch

officer and retailers of the company.
OVERALL ORAGANIZATION CULTURE

In Mehghmani finechem Ltd. Employees are abide of the
policies of the company. They strictly follow the rules and
regulation. In the return they get good facilities. Here, employees
are co-operative to one another on their duty. The relationship
between superior and subordinate in Meghmani organics Ltd. Is
good productive.
STRATEGIES
FOR
FUTURE
GROWTH
AND
DEVELOPMENT
To position itself better from increased demand from local
market, the company has increased the production capacity of its
caustics and chlorine to meet the demand of its global customers
base, the company is in the process of introducing new range of
high performance caustic and chlorine.
DEPARTMENTAL STRUCTURE
25
V.P (UNIT HEAD)

MR. M. A. HANIA
H.O.D.
(HEAD OF
DEPARTMENT)
MR. JITESH
VAGANI
MR. NANDLAL
SHIFT INCHARGE
(4 PAERSIONS)
D C S ENGINEER
(4 PERSONS)
SENIOR
SUPERVISOR
OPERATORS
(25 PERSONS)

26
~Productio
n~
~Departme
nt~
27
ACTIVITIES
Collection
of
production
orders
from
the
marketing
department
Analysis for availability & procurement of raw material
Yield & efficiency analysis
Material information reports generation
System development
Co ordination with various department
Planning of manpower for daily operation
Receiving raw material from stores department
Co-ordination with purchase department for purchase of raw
material in case of non availability in stores

Daily planning of production activity
To ensure and maintain production quality
To achieve production target
To ensure optimum utilization of resources
TYPES OF PRODUCT & SPECIFICATIONS

MAIN PRODUCT
CAUSTIC SODA LYE 48%
BY PRODUCT
HYDROGEN
(NaOH)
CAUSTIC SODA FLAKES 98.5
(H2)
HYDROCHLORIC ACID
(NaOH)
CAUSTIC SODA FLAKES 98.5
(HCL)
SODIUM HYPOCHLORIDE
(NaOH)
(NaOCl)
SPECIFICATION OF MAIN PRODUCT

28
CAUSTIC SODA LYE 48%

CONS
COMPOSITION
NaCl
NaClO3
IRON PICKUP
NICKEL PICKUP
TEMPRETURE
48+- .5%W/W NaOH

63 WT PPM MAX
30 WT PPM MAX
1 WT PPM MAX
0.6 WT PPM MAX
45.6 WT PPM MAX
CAUSTIC SODA FLACKS 98.5%

CONS
NaOH 9805% MW TOTAL SOLID
COMPOSITION
NaCl
NaClO3
IRON PICKUP
NICKL PICKUP
SIZE
BULK DENSITY
TEMPERETURE
162 Wt PPM MAX

0.15% Wt PPM MAX
5 Kt PPM MAX
0.8, 1.5 MM
APPROY 0.3-1 CM2
APPROY 0.8-0.9 TON
60C
Liquid Chlorine (Cl2)

Chlorine Content
Moisture
99.80 min
0.01 max
RAW MATERIALS USED
SALT (NaCl)
WATER (H2O)
ELECTRICITY (DC)
BARIUM CARBONATE (BaCO3)

29
ALPHA SALULOSE (FLOCK)

SODA ASH
SODIUM SULPHITE
SULPHURIC ACID 78%
SUGAR

30
~Human~
~Resource
s~
HR department structure
VP
VICE PRESIDENT
MR. M. A. HANIA
31
H.O.D.
HEAD OF DEPARTMENT
MR. DHARMESH PATEL
H.R. OFFICER
MR. MILAN MEHTA
ADMINISTRATOR
SECURITY OFFICER
MR.
T. J. PARMAR
MR. RAJENDRA
TIVARI
TIME OFFICER
MR. KALPESH GOH
HR officer:
HR officer post handle in the company by the MR. Dharmesh Patel
and the work of His is to see the day to day problem & handle the
HR problem.
Recruitment officer
32
The work of him is that to saw the requirement of the HR in the

company and doing job related to the recruitment and selection
and other more jobs.
Departmental Manager & IR

He is the in the department and he handle the big HR problem as
well as the outside organization HR problem as well as the
recruitment for the higher post.
HR Policies & Procedures:1)
Recruitment policy
Internal Source of Recruitment

33
o Past Candidates
o Personal Contacts
o Employee Recommendation
External Source of Recruitment
o Newspaper Advertising
o Direct Recruitment
2)
Joining Formalities & Induction Policy
3)
Employment & Personnel System Policy
4)
Employee Regulation Policy

Hours of Operation/Work Schedules
SHIFT
General shift
First shift
Second shift
IN TIME
8:30 a.m.
06:00 a.m.
02:00 p.m.
Night shift
10:00 p.m.
Attendance Policy
OUT TIME
05:00 p.m.
02:00 p.m.
10:00 p.m.
06:00 a.m.
o If MFL Manager/Superior/Supervisor is unavailable,

he should be informed via Hand
Written/Email/Messenger.
o Absence for three Consecutive working days
without notifying the manager is considered a
voluntary termination
34
Leave of Absence Policy

o Sick leave
o Casual leave
o Privilege leave
Pay and Compensation
o Employees are paid monthly salary.
Overtime
o Overtimes must be approved by Manager/Superior
Privilege Leave
Casual Leave (Half day leave)
o Employee of company will be entitling for Casual
Leave.
o Unused Casual Leave lapsed at end of every
calendar year.
Sick Leave
o Employee of company will be entitling for Sick
Leave.
o Unused Sick Leave lapsed at end of every calendar
year.
35
Health / Medical Benefits

o Medical facilities given to employee and its
dependent family member.
Equal Employment Policy
Termination
o MFL Company asked to provide advance notice of
their resignation.
Drug and Alcohol Policy
Workplace Security Policy
Dress Code Policy
Smoking Policy
5)
Separation Policy
MEGHMANI company has to give 3 months notice to
employee
6)
Compensatory off Policy

Equal compensation according her/him working hours.
Or in and out time.
7)
Mobile Phone Policy

36
MEGHMANI Company use mobile policy for their

employees.
8)
Domestic Travel Policy

These rules are applicable when employee is on tour
for out station duty.
MFL Company Provided Traveling Allowances to their
Employees.
9)
Foreign Travel Policy
10) Leave Policy (For Regular Policy)

PRIVILEGE LEAVE (P.L)
CASUAL LEAVE (C.L)(Half Day)
SICK LEAVE (S.L)
11) Leave Policy (Other than Regular Employees)
This
policy
for
Temporary
Employee/
Trainee/
Consultant/ Employee on Contract.

12) Natural Death Policy
It is applicable to regular employee & full time consultant
who has opted to join this scheme & it is compulsory
applicable to new join.

37
It is contributory scheme. Employees are required to

contribute token premium as per the Company policy.
13) Marriage Gift Policy (For Regular employee)
Marriage gift policy Categories given below
Sr. Officer/ Sr. Executive & below level
Self-Marriage
Son / Daughter
Marriage
Assistant Manager & Above
Self-Marriage
Son / Daughter
Marriage
According to
designation
company
decided
marriage gift
and providing to policy term and condition.

14) Group Personal Accident Policy
This policy is applicable to all the regular employee of all
the units.
Employees are eligible for claiming under this policy, if
any injury or death or disablement of employee occurs
during the course of an employment.
15) Birthday Gift Policy

38
Employee name will be displayed on the notice board at

the reception, wishing him A HAPPY BIRTHDAY.
16) Medical Policy
Medical policy for regular employees in the organization
and this policy given on the bases of salary earn per
month.
MEGHMANI given amount of medical claim by the
employees.
Mediclaim will be paid to only if the member is
hospitalized for more than 24 hours.
Medical policy also includes his /her dependent family
member.
17) Attire Allowance Policy
18) LTA Policy (Leave Travel Assistance)
19) Laptop / Computer Policy
20) Company Car Scheme Policy
MEGHMANI Company providing car facilities to their
employees.
MEGHMANI Company dividing Car facilities according to
the designation, higher designation provide high amount
of Car.

39
~Marketing
~
~departme
nt~
40
DEPARTMENTAL STRUCTURE

41
Marketing:
(UNIT HEAD)
Marketing is an activity. Marketing activities and strategies result

VICE PRESIDENT
in making products available that satisfy customers while making

MR.M A HANIA
profits for the companies that offer those products.
MFL Marketing activities:

H.O.D
Marketing activities are(DEPUTY

numerous
and varied because they
MANAGER)
MR. HITESH
BHATIA
basically include everything
needed
to get a product off the
drawing board and into the hands of the customer. The broad field
of marketing includes activities such as:
MARKETING OFFICER
Designing the productMR.

soUMESH
it will SHAH
be desirable to customers by
using tools such as marketing research and pricing.
Promoting the product so people will know about it by using
MARKETING
ASSISTANS
tools such as public
relations,
advertising, and marketing
communications.
Setting a price and letting potential customers know about
your product and making it available to them.

The need of recognition of customer.
Entertaining
and materializing
MR.LAXMAN
MR.AMIT
MR.TUSHAR their requirement.
PATEL weighing and physical dispatch of the product.
Vehicle
CHAUHAN
PADHIYAR
Identify customer.
Co-ordination with user and distribution channel.
MR.HARDIK
RATHOD
MR. BHAVESH
PATEL
MFL market segmentation

42
It is task of breaking a total market in to the segments. It is the

process of grouping the market in to the segment with common
characteristics.
The segmentation can be done on the following base.
Region wise segmentation
Product wise segmentation
Client wise segmentation
Segmentation is required for the following reason.
It help concentrating the each customer
It help in the understanding the individual customer
requirement as well as the problem
It helps in the proper allocation of the resource with the
effective as well as efficient use of the resource.
MFL use the two type of segmentation.
Customer wise segmentation

MFL has divides its whole market in to the four segmentation i.e.
a. North zone
b. East zone
43
c. South zone
d. West zone
Customer wise segmentation

MFL has the many valuable customers which are frequently in the
touch with the company for the purpose of the purchase order. So
the company has divide its whole marketing department on the
basis of the valuable customer.
The other reason is that the person who assign for particular
customer consistently in touch with customer on the behalf of the
company so it can build the valuable relationship.
Distribution channel
1. Zero level
2. One level MFL Company
MFL Company
Retailer/wholesale
r

44
Customer
Customer
3. Two level
Wholesaler
MFL Company
Retailer
Customer
4. Three level
MFL
Agent
Wholesale
r
Retailer
Customer
Meghmani use above two types of distribution channel (1) zero

level and (2) One level. They are deal B2B marketing. Meghmani
majority customer is industrial unit because they use the MFL
chemical product and making their own products.
Position of the MFL in product life cycle

45

46
~Finance~
~Departme
nt~
47
Departmental structure:
V.P. (UNIT
HEAD)
MR. M. A.
HANIA
H. O. D.
MR. H. M.
PETHANI
ASSISTANT
MR. ALPESH
PATEL
48
Activities:
To keep the record of cash receive & expenses of the
company, it is a responsibility of finance department. That to
record all inflows & outflows. The company head office at
Ahmadabad looks over the major income & expenses.
To tally cash & bank balance of the company. The finance
department employee checks the balance of bank & cash.
To look over the bills of contractors, consumable &
receivables.
Head office summarizes the data & prepares the quarterly &
annually report.
Record keeping
is
the
major
activity
of
the
finance
department. The head office controls the companys account

department. So, the factory level account department sends
the record to the head office.
They have responsibility to pay the salary in time.
Monthly filing of sales tax returns, payments & getting the
assessment done.
Co-ordination between head office & the factory level
account is very important.

49
BUDGETORY CONTROL METHOD/SYSTEM

1. BUDGET MANUAL
In MFL budget means the estimation about cost, here
different officer estimates cost, so the budget is fixed earlier
to start the financial year. So the source of money also
supply up to the estimated budget. If the actual cost
increase form budget, the financial officers have to report to
its manager. These are all noted in budget manual.
MFL prepared budget manual by head office.
2. BUDGET PERIOD
MFL budget period is prepared on yearly basis from 1
April to 31st March.
3. PRINCIPAL BUDGET FACTOR
The factors which the company takes into consideration
while preparing budget are as follows
Marketing/Sales
Capacity of the plant
Funds available
Expansion of the plant
Seasonal factors

50
4. BUDGET CENTERS:
Production
Material
Marketing
Finance
Personnel & Administration
ACCOUNTING METHOD/SYSTEM
1. MFL follows mercantile accounting method/system.

51
~MINI~
~PROJECT~

52
TITLE: - ANALISIS OF CASH

FLOW STATEMENT
AT
MEGHMANI FINECHEM
LIMITED
LITERATURE REVIEW
Cash flow is the life blood of a business which plays a vital
role in an entire economic life. Cash flows refers to actual
movement of cash into and out of an organization. In other words,
the movement of cash inclusive of inflow cash and outflow of
cash. When the cash flow into the organization, it represents
53
inflow of cash. Similarly when the cash flows out of the business
concern, it called as cash outflow.
In order to ensure cash flows are adequate to meet current
liabilities such as tax payments, wages, amounts due to trade
creditors, it is essential to prepare a statement of changes in the
financial position of a firm on cash basis is called as cash flow
statement. This statement depicting movement of cash position
from one period to another.
Cash flow statement is a statement of inflows and outflows
of cash and cash equivalents in an enterprise during a specified
period of time. While the primary objective of the cash flows
statement is to provide information regarding cash receipts and
cash payments of an enterprise for an accounting period.
Cash flow statement is additional information to user of
financial statement. This statement exhibits the flow of incoming
and outgoing cash. This statement is one of the tools for
assessing the liquidity and solvency of the enterprise. The cash
flow statement is prepared on the basis of AS-3.this standard
applies to the following enterprise.
Which has turnover more than rs.50 crores in a financial year
Listed companies-shares of these companies listed in stock
Exchange, cash flow statement of listed companies shall be
presented only under indirect method as prescribed in AS-3.

54
REQUIREMENTS FOR STATEMENT:

There are following requirements: COMPARATIVE BALANCE SHEET:Balance sheets at the beginning and end of the accounting
year indicates that the amount of change taken place in assets,
liability and capital, and balance sheet of MFL for last 3 years(i.e.
2007-08, 2008-09, 2009-10)
PROFIT & LOSS ACCOUNT:The profit & loss account determine the amount of cash
provided in operations during the accounting period after making
the adjustments for non cash, current assets and liabilities, and
profit and loss account for MFL of last 3 years.
ADDITIONAL DATA:Additional data are collected to determine how cash has
been provided or used, and discussing with finance head of the
company.
PROCESS OF CASH FLOW STATEMENT: First step is to calculate net increase and decrease in cash
and cash equivalent items. It may be computed by
55
comparing these accounts given in the balance sheet. Cash

receipts and payments are responsible for the increase and
decrease in cash and cash equivalent items.
Second step is to calculate net cash flow from operating
activities. It may be computed by analysis of profit & loss
account, comparative balance sheet and additional data.
Third step is to calculate net cash flow from investing and
financing activities. All other changes in the balance sheet
item
must
be
taken
into
account
as
the
additional
information. The effect of cash may be grouped under the

investing and financing activities.
The fourth step is to prepare cash flow statement by
classifying all cash flows and outflows in terms of operating,
investing and financing activities. The net cash flow from
each activity may be highlight.
Fifth step is to ensure that net cash flow from operating,
investing and financing activities is equal to net increase or
decrease in cash and cash equivalents.
Last step is to record any significant transaction that did not
involve cash or cash equivalents in a separate schedule to
the cash flow statement.
COMPONENTS: EXPENSE REPORT:-

56
Company needs a monthly expense report. This report would

include companys daily payment activities. If company purchases
something for business then company would document the
purchase in expense report. Company should prepare monthly
expense report because company can easily record transactions
of that month in expense report.
INCOME REPORT:Company also needs monthly Income Report. This report
would include companys daily receipt activity. If company would
sale something for business then company would document the
sale in income report. Company should prepare monthly income
report because company can easily record transactions of that
month in income report.
USES OF CASH FLOW STATEMENT

57
Cash flow statement is a useful tool to the management for

taking important financial decision making. The following are the
uses of this statement:
1) This statement is the most useful to the management
to prepare dividend and retention policies.
2) It guides the management to evaluate the changes in
cash position.
3) It presents in brief to the management about the
performance of operational, financial and investment
activities for effective decision.
4) It helps to how the movement of cash took place and
the factors which caused the changes in cash flows.
5) It guides the management to take decision about short term
obligation.
HEAD OF CASH FLOW STATEMENT

Cash flow statement explains cash movement under the
following three different heads namely:
CASH FROM OPRETING ACTIVITIES.
CASH FROM INVESTMENT ACTIVITIES.
CASH FROM FINANCIAL ACTIVITIES.
1)
OPERATING ACTIVITIES:
Operating activities is revenue producing activities of the

enterprises other than investing and financing activities.

58
They generally result from the transactions and other events

that enter into the determination of net profit or loss.
Examples of cash flow from operating activities are as
follows:
a) Cash receipt from sale of goods and rendering services
b)Cash receipt from royalties, fees commission and other
revenues
c) Cash payment to the suppliers for goods and services
d) Cash payment to and on behalf of employees
Some transaction, such as the sale of a plat, may give rise to
gain or loss which is included in the determination of net
profit or loss. However, the cash flow relating to such
transaction is cash flow from investing activities.
An enterprise may hold securities and loans for dealing or
trading purposes, in which case they are similar to inventory
acquired specifically for resale. Therefore cash flows arising
from the purchase and sale of dealing or trading securities
are classified as operating activities.
2)
INVESTMENT ACTIVIES:
Investing activities are the acquisition and disposal of long

term assets and other investments not included in cash
equivalents.
Examples of cash flow arising from investing activities are,

59
a) Cash
payment
to
acquire
fixed
assets
(including
intangibles).including capitalized research development

costs and cost of self constructed fixed assets.
b) Cash receipts form disposals of fixed assets including
intangibles
c) Cash payment to acquire shares debentures etc. of
other enterprises and interest in joint ventures (other
than investment held for dealing or trading purposes)
d) Cash receipts form disposal of such shares debentures
etc.
e) Cash advances and loans made to third parties (other
than advances & loans made by a financing co.)
f) Cash receipts from repayments of such advances and
loans made to third parties.
g) Cash payment for future contracts, forward contracts,
option etc. except when the contracts are held for
dealing or trading purposes.
h) Cash payment from such future contracts, forward
contracts etc.
3)
FINANCING ACTIVITIES :
Financing activities are activities that result in changes in

changes in the size and composition of the owners capital
(including preference share capital in the case of co.) and
borrowing of enterprise.
Examples of cash flows arising from financing activities are:

60
a) Cash proceed from issuing shares or other similar

instruments.
b) Cash proceed from issuing debentures, loans, notes,
bonds and other short or long term borrowings.
c) Cash repayment of amount borrowed, redemption of
shares/debenture.
DISCLOSURE REQUIREMENTS OF SOME ITEMS

1) Interest and dividends:
In cash of non finance enterprises, interest and dividends are not
related to operating activities of the enterprise and therefore, are
not shown as a part of cash flows from operating activities. Cash
outflows arising from interest and dividend paid are excluded from
cash flow from operations and are classified as cash outflows from
financing activities. Similarly, interest and dividend received are
classified as none operating and reported as cash inflows from
investing activities. Net profit is adjusted for non operating
expenses and incomes to calculate operating profits.
61
INTEREST
Interest received
Received from investment. It is in investment activities.
Received from shot-term investment classified as cash
equivalents should be considered as cash inflow from
operating activities.
Received on trade advances and operating receivables
should be in operating activities
Interest paid
On loans/debts are in financing activities
capital loan and any other loan taken to finance
operating activities
Dividend received
For financial enterprises in operating activities.
Dividend paid
Always classified as financing activates.
2) Income tax
3) Extraordinary items
4) Cash flow from foreign currency transaction
5) Non cash transaction
6) Disclosure of cash and cash equivalents

62
CASH FLOW STATEMENT

LIABILITIES
ASSETS
CURRENT LIABILITIES
(OPERATING ACTIVITIES)
NON-CURRENT LIABILITIES
(FINANCIAL ACTIVITIES
CURRENT ASSETS
(OPERATING ACTIVITIES)
NON-CURRENT ASSETS
(FINANCIAL ACTIVITIES)
CASH vs. CASH FLOW:Cash is a ready money in the bank or in the business. It is not
inventory,
accounts
receivable
and
property.
These
can
potentially be converted to cash but cannot be used to pay

suppliers or employees. Profit growth does not mean more cash
on hand. Profit is the amount of money you expect to make over a
given period of time, while cash is what you must have on hand to
keep your business running. You cannot spend profit but you can
only spend cash.
While Cash flow refers to the movement of cash into and out of a
business. Cash inflows and outflows are the most important part
for any business. The outflow of cash includes payment to
suppliers, creditors and employees salaries. The inflow includes
the cash you receive from customers and investors.
63
TYPES OF CASH FLOW:There are two types of cash flow: POSITIVE CASH FLOW:If cash inflow exceeds the outflow, a company has a positive cash
flow. A positive cash flow is a good sign of financial health.
Company is in a position to borrow more and purchase assets and
meet its liability.
NEGATIVE CASH FLOW:If cash outflow exceeds the inflow, a company has a negative
cash flow. Reasons for negative cash flow include obsolete
inventory and poor collections on accounts receivable. At this
point company can't borrow additional cash. It may be a sign of
serious trouble.
ADVANTAGES OF CASH FLOW STATEMENT: It is an indicator for the cash flows in the future period. It
helps the management in forecasting the future needs and
plans.
It helps in efficient management of cash.
It reveals the liquidity positions of the company.
64
It is very useful in evaluating financial policies and cash

positions.
It highlights the trend of the movement of cash.
It helps to compare the present value of the future cash flow
of different enterprises.
LIMITATIONS CASH FLOW STATEMENT: Cash flow statement only reveals the inflow and outflow of
cash. The cash balance disclosed by this statement may not
be predicting the true liquid positions.
Cash flow statement cannot be compare with the income
statement. An income statement takes into account both
cash and non cash items. Cash fund does not mean net
income of business.
Working capital being a wider concept of funds, fund flow
statement presents a more complete picture than cash flow
statement.
DIFFERENCE BETWEEN FUND FLOW STATEMENT &

CASH FLOW
STATEMENT:
Fund Flow statement & Cash Flow statement are two useful
tools
of
financial
analysis
and
interpretation
of
financial
statements. But at the same time both the statement differ from
each other in the following manner:
65
1. Fund Flow statement helps to measure the causes of

change in working capital.
Whereas cash flow statement focuses on the causes for
the movement of cash during a particular period.
2. Fund flow statement is prepared on the basis of fund or
all financial recourses.
While Cash Flow statement is based on cash basis of
accounting.
3. Cash flow statement guides to the management for
short term financial planning.
While fund Flow analysis helps to management for
intermediate and long term financial planning.
4. Statement of changes in working capital is required for
the presentation of Fund Flow statement.
While for cash Flow statement no such statement is
required.
1)
FUND FLOW STATEMENT
A statement of sources and application of funds is a technical

device designed to analyse the change in the financial condition
of a business enterprise between two dates.- by Foulke.In brief
it may be said that fund statement focuses on flow of funds
between the various assets and equity items during the
accounting period. And analysis base4d on this statement is
generally called fund flow statement.
66
Meaning of fund:
The term fund refers t cash, to cash equivalent or to working
capital and all financial resources which are used in business.
Meaning of flow of fund :
The term flow of funds refers to change or movement of funds
or change in working capital in the normal course of business
transactions.
2)
CASH FLOW STATEMENT
There are two methods used for preparing the cash flow
statements. They are as
Follows:-
DIRECT METHOD:Under the direct method cash receipts from operating revenues
and cash payments for operating expenses are arranged and
presented in the cash flow statements. The difference between
cash receipts and cash payments is the net cash flow from
operating activities. Under cash flow statement each cash
transactions is analyses separately and the total cash receipts
and payments for the eriod are determined. The data can be
obtained
from
the
financial
statements
and
additional
information. Under cash flow statement we convert accrual basis

67
of revenues and expenses into equivalent cash receipts and

payments.
Examples of cash receipts and payments:
Cash
Cash
Cash
Cash
Cash
Cash
Cash
sales of goods and services,

collected from debtors,
receipts of interest,
receipts of royalties, commission,
payments to creditors.
payments for operating expenses,
payments for wages, taxes, and salaries.
FORMAT OF DIRECT METHOD

PARTICULAR
AMOUNT
Cash flow from operating activities
XXXX
Cash receipt from customer
XXXX
LESS: cash payment to supplier
XXXX
Cash receipt from operation
XXXX
NET CASH FLOW FROM OPERATION( A )
XXXX
Cash flow from investing operation
XXXX
LESS: Purchase of fixed assets
XXXX
ADD: sale of fixed assets
XXXX
LESS: Purchase of securities
XXXX
ADD: sale of securities
XXXX
ADD: dividend received
XXXX
ADD: interest received
XXXX
CASH FLOW FROM INVESTING ACTIVITIES ( B
XXXX
XXXX
Cash flow from financing activities

68
XXXX
ADD: Issue of shares
XXXX
LESS: redemption in shares
XXXX
ADD: issue of debenture
XXXX
LESS: redemption of debenture
XXXX
LESS: dividend paid
XXXX
LESS: interest paid
XXXX
NET CASH FLOW FROM FINANCING
XXXX
ACTIVITIES ( C )
XXXX
Net cash or cash equivalent from the

activities (A+B+C)
ADD: opening balance of cash
Closing balance of cash flow
XXXX
INDIRECT METSHOD:In this method net profit is used as the base and it convert it to
net cash provided by operating activities. The indirect method
adjusts net profit for items that affected net profit but did not
affect cash. Non cash and non operating charges in the profit and
loss account are added back to the net profit while non cash and
non operating credits are deducted to calculate operating profit
before working capital changes. It is the partial conversion of
accrual basis profit to cash basis profit. Necessary adjustments
are made for increase and decrease in current assets and
liabilities to obtain net cash flow from operating activities.
PARTICULAR
AMOUNT

69
Cash flow from Operating Activities
XXXXX
Profit made during the year
XXXXX
ADD: NON-OPERATING ITEMS (EXPENSES)
XXXXX
Depreciation on Building
XXXXX
Depreciation on Machinery
XXXXX
Depreciation on Machinery sold
XXXXX
Increase in Provision for doubtful debts
XXXXX
Dividend paid
XXXXX
Transfer to Reserves
XXXXX
Goodwill Written of
XXXXX
Preliminary Expenses written of
XXXXX
Other tangible assets written of
XXXXX
Loss on sale of disposable fixed assets
XXXXX
LESS: NON- OPERATING ITEMS (INCOME)
XXXXX
Profit on sale of investment
XXXXX
Profit on sale of machinery
XXXXX
OPERATING PROFIT BEFORE WORKING CAPITAL
XXXXX
CHANGES
XXXXX
ADD: Increase in Current Liabilities
XXXXX
ADD: Decrease in Current Assets
XXXXX
LESS: Increase in Current Liabilities
XXXXX
LESS: Decrease in Current Assets
XXXXX
CASH GENERATED FROM OPERATING ACTIVITIES

LESS: Income tax paid(last year)
NET CASH FLOWS FROM OPERATING ACTIVITIES (A)
CASH FLOWS FROM INVESTING ACTIVITIES
ADD: sale of Investments
Sale of Machine
LESS: Purchase of Buildings
Purchase of Machinery
NET CASH FLOWS FROMS INVESTING ACTIVITIES (B)
70
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
CASH FLOWS FROM FINANCING ACTIVITIES
XXXXX
ADD: Issue of share
XXXXX
ADD: Issue of Debenture
XXXXX
LESS: Interim Dividend Paid
XXXXX
LESS: Redemption of Debentures
XXXXX
LESS: Dividend Paid
XXXXX
NET CASH FLOWS FROM FINANCING ACTIVITIES (C)
XXXXX
Net increase/decrease in cash & cash
XXXXX
Equivalents(A+B+C)
XXXXX
Cash & Cash Equivalents at the beginning of the year
XXXXX
Cash & Cash Equivalents at end of the year
Description of Cash flow

Every company making Cash flow statement for smooth running
of their organization, like this MEGHMANI FINECHEM LIMITED
also preparing Cash flow statement for them self. Cash flow
statement are make using (i) Fund flow statement (ii) Cash flow
statement but most of company using cash flow statement in
which two method are given (i) Direct method
(ii) indirect
method. MEGHMANI FINECHEM LIMITED making cash flow

statement using INDIRECT METHOD , that indirect method
statement
shown
in
above
table,
according
to
the
table
MEGHMANI making their Cash flow statement. Now-a-days every

big organization using indirect method for making cash flow
statement. It is suitable for company like MFL, MOL, MIL, MUL etc.
RESEARCH OBJECTIVES
71
1) Operating activity of the company

Cash receipt from sale of goods and rendering services
Cash receipt from royalties, fees commission and other
revenues
Cash payment to the suppliers for goods and services
Cash payment to and on behalf of employees
2) Investing activity of the company
Cash receipts form disposals of fixed assets including
intangibles.
Cash receipts form disposal of such shares debentures
etc.
Cash advances and loans made to third parties (other
than advances & loans made by a financing co.)
3) Financing activity of the company
Cash proceed from issuing shares or other similar
instruments.
Cash proceed from issuing debentures, loans, notes,
bonds and other short or long term borrowings.
Cash repayment of amount borrowed, redemption of
shares/debenture.
4) Comparison of activities current data with previous data
Analysis of last 3 years data for Growth of MEGHMANI
FINECHEM LIMITED.

72
Comparison of operating activities of MEGHMANI

with previous data
YEAR
OPERATING
ACTIVITIES
2007-08
2008-09
2009-10
0
(486,575,775)
174,000,786
OPERATING ACTIVITIES
operating activities
174,000,786
2009-10
(486,575,775)
2008-09
2007-08
-
DESCRIPTION OF ABOVE OPERATING ACTIVITIES CHART

(finding)
MEGHMANI FINECHEM LIMITED newly started in 2008 at
DAHEJ, MFL company having establish in wide land of dahej to
manufacturing chemical plant, so that at initial stage of stating

73
new plan lots on capital are invested in that process that why
year 2007-08 operating activity of cash flow is 0.
Comparison of Investment Activities of MEGHMANI

with previous year.
YEAR
INVESTMENT ACTIVITIES
2007-08
2008-09
2009-10
(1,185,365,019)
(3,366,368,545)
(266,172,330)
2009-10 (266,172,330)
(3,366,368,545)
2008-09
(1,185,365,019)
2007-08
DESCRIPTION OF ABOVE INVESTMENT ACTIVITIES

CHART(finding)
INVESTMENT
ACTIVITIES
of
MEGHMANI
FINECHEM
LIMITED
different to other, and MEGHMANI newly stated company so that

operating activates are 0, that directly affected to the

74
INVESTMENT ACTIVITIES because of that in 2007-08 investment

are at -1,185,365,019.
Comparison of Financial Activities of MEGHMANI

with previous year.
YEAR
FINANCIAL ACTIVITIES
2007-08
2008-09
2009-10
1,466,592,879
3,653,395,013
22,209,523
2009-10 22,209,523
3,653,395,013
2008-09
2007-08
1,466,592,879
DESCRIPTION OF ABOVE FINANCIAL CHART(finding)

In MEGHMANI FINECHEM LIMITED has stared in financial year
2007-08, and for that lot of capital are borrowed from outsides the
company. When MFL Company earns enough cash flow in
organization so that company has to pay their debts and interest
75
charging on capital that why in 2009-10 cash flow are so less i.e.
22,209,523.
BIBLIOGRAPHY
http://www.meghmani.com
I M Pandey, Financial Management
Edition (Vikas Publishing House)
Annual Report Of MEGHMANI
Ninth
FINECHEM
LIMITED 2007-2010
G. Sudarsana Reddy, Financial Management
(Himalaya Publishing House)
Ambrish Gupta, Financial
Accounting
Management Third edition (Pearson)

76
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~General~

BACKGROUND OF THE COMPANY

Meghmani Finechem Ltd.

Maghmani finechem limited

Meghmani Dyes &

Meghmani Finechem Ltd.

Other related company

Meghmani Europe BVBA

Meghmani Finechem Ltd.

In 2008, MOL set up a subsidiary chlor-alkali project at

The plant, with a manufacturing capacity of 1,10,000

Sited in a 161-acre piece of land in Dahej, the

Meghmani Finechem Ltd.

Meghmani Organics Limited (MOL or the sponsor), a manufacturer

Meghmani Finechem Ltd.

Project sponsor and major shareholders of Project

- agro-chemicals and pesticides manufactured in the Ankleshwar

MOL is 48.8% owned by the controlling shareholders and their

through direct listing in Bombay Stock Exchange (21.1%). MOL

Total project cost and amount and nature of IFC's

Meghmani Finechem Ltd.

Location of project and description of site

Meghmani Finechem Ltd.

Anticipated development impact of the project

environmental and social performance for MFLs facilities using

- Once operational, the project is expected to create about 500

- During construction period, the project is expected to create 200

construction phase. Indicator: number of construction workers

- The project generate downstream economic impact in the local

area. Indicator: value of raw materials sourced from local

Environmental and social issues - Category B

Meghmani Finechem Ltd.

VISION AND MISSION STATEMENTS

INVESTMENT IN PLANT AND MACHINARY

Meghmani Finechem Ltd.

MFL BOARD OF DIRECTOR

Meghmani Finechem Ltd.

Mr Ashish N. Soparkar holds a Bachelors of Chemical

Meghmani Finechem Ltd.

Mr Anand Ishwarbhai Pate1 is the Executive Director

Meghmani Finechem Ltd.

Mr. Balkrishna Thakkar, 69 years, was appointed as a

Mr. Jayaraman Vishwanathan, 49 years, was

Meghmani Finechem Ltd.

Mr. Pankaj Shah, 59 years, was appointed on March

AWORD AND ACHIVEMENT OF MEGHMANI

Meghmani Finechem Ltd.

National export award from the President, Government

Award for excellent export performance from the

Certificate of merit for outstanding export performance

Award for export performance from GDMA, Ahmedabad

Meghmani Finechem Ltd.

Six Sigma award from General Electric

SIAS Investors Choice Award for the most transparent

Meghmani Finechem Ltd.

MLESTONES SINCE INCEPTION

to manufacture insecticides, agrochemicals

Company expanded its pigment business by purchasing

land at GIDC, panoli near ankleshwar.

blue at the panoli plant.

production, purchasing, marketing and distribution in

relation to vatva, panoli and chharodi plant.

Meghmani Finechem Ltd.

Dahej GIDS industrial estate