Académique Documents
Professionnel Documents
Culture Documents
Secondary Data:
Past fact sheet maintained by the
organization. (Annual Reports of 2010-09, 2009-08, 2008-
07, 2007-06)
Company Profile
“MEGHMANI HOUSE”
Street: Shree Nivas Society,
Area: Paldi,
City: Ahmedabad-380 007.
State: Gujarat
Country: INDIA.
Agro Domestic Helpline No. : +91-9909030545
Phone No. : +91-79-26640668/669
Fax No. : +91-79-26640 670
Vision
“To become a global leader in the chemicals and allied
industries.”
Mission
Company will lead by:
Values
Company values in being:
Company Overview
Related Companies
• Meghmani Dyes & Intermediates & Meghmani Industries
LTD.
• Ashish Chemical
• Meghmani Pigments
History
Company were founded in 1986 as a partnership, under the
name M/s Gujarat Industries, to manufacture Pigments by our
Executive Chairman Mr. Jayanti Patel, together with our Managing
Directors, Mr. Ashish Soparkar and Mr. Natwarlal Patel, as well as two
of our Executive Directors Mr. Ramesh Patel and Mr. Anand I Patel
On 2 January 1995, our Company, Meghmani Organics
Limited, was incorporated as a joint stock company with limited liability
pursuant to Part IX of the Indian Companies Act.
The Vatva Plant was originally set up for the manufacture of Pigment
Green 7. Our present production capacity of 1200 tpa at the Vatva
Plant is the result of the construction of additional facilities over the
years, which increased the manufacturing capacity of Pigment Green 7
from 240 tpa in 1986 to its present production capacity.
Ankleshwar Plant
In FY2003, we acquired another plant in Ankleshwar at a purchase
price of Rs 31.5 million. The Ankleshwar Plant commenced production
on 1 August 2003 to manufacture Chlorpyrifos, a class of Agrochemical
products, and has a current installed production capacity of 480 tpa.
PRODUCTS
S.K PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES (2010) 10
A) HERBICIDES
1. Atrazine Technical
2. Ametryne Technical (PSF)
3. Terbutryne Technical (PSF)
4. Pretilachlor Technical
5. Pendimethalin Technical
B) FUNGICIDES
1. Hexaconazole Technical
2. Propiconazole Technical
3. Thiophanate methyl Technical (PSF)
4. Tricyclazole Technical
Usage
Manufacturing Process
1. Atrazine Technical
In Toluene Cyanuric Chloride is dissolved and reacted with isopropyl
amine. Sodium Hydroxide is added to neutralize the liberated
hydrochloride acid. Intermediate compound (2-isopropylamino-4, 6-
dichloro-1, 3, 5-triazine) is then reacted with monoethyl amine. Solvent
is recovered by steam distillation. Atrazine is filtered off, centrifuged,
dried and pulverized. Atrazine Technical is then packed according to
the requirement or formulated
2. Ametryne Technical
• Atrazine is reacted with dilute sodium methyl merchantman
(SMM) solution. Ametryne thus formed is filtered off, centrifuged,
dried and pulverized. Ametryne Technical is then packed
according to the requirement or formulated.
Flow Diagram
Flow Diagram
Collection
Collection Collection Tank- 5 & 6
Tank-1 & 2 Tank- 3 & 4
Incinerator - I & II
Investing Activities
Investment activities represent the cash flow from the purchase of long
term assets required to make or sell goods and services. Investment
activities also include purchases of stocks or other securities. A major
issue that potential investors have with the investing activities section
is that the money listed here represents activities paid for in cash. So,
if a company were to purchase $5 million dollars worth of equipment
with only $1 million cash and $4 million in financing, only the $1 million
will show up under investing activities.
Financing Activities
Financing cash flow is related to money in and out to investors and
shareholders. When a company raises funds from bonds or stock, this
is considered cash in. While dividends paid out to investors and
interest paid to bond holders is considered cash out.
DATA ANALYSIS
AND
S.K PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES (2010) 23
INTERPRETATION
1) Current Ratio
This ratio is obtained by dividing the 'Total Current
Assets' of a company by its 'Total Current Liabilities'. The ratio is
regarded as a test of liquidity for a company. It expresses the
'working capital' relationship of current assets available to meet the
company's current obligations.
7
6.05
6
4.96
5
4.01
3.72
4
3
2
1
0
2009- 2008- 2007- 2006-
S.K PATEL INSTITUTE
‘10 OF MANAGEMENT
09 08AND COMPUTER
07 STUDIES (2010) 24
Interpretation:
The current ratio is an index of the concern’s financial
stability. Current ratio of the company is good as compare to ideal ratio
of current ratio 2:1. The current ratio of company is reduced year by
year since 2008-09 but in 2009-10, it was recovered by the company.
2) Quick Ratio
This ratio is obtained by dividing the 'Total Quick
Assets' of a company by its 'Total Current Liabilities'. The ratio is
regarded as an acid test of liquidity for a company. It expresses the
true 'working capital' relationship of its cash, accounts receivables,
prepaid and notes receivables available to meet the company's current
obligations.
LiquidRatio
5
4.4
4.5 4.01
4
3.5 3.17
2.98
3
2.5
2
1.5
1
0.5
0
2009-10 2008-09 2007-08 2006-07
10
8.44 8.71
9
8
6.58 6.41
7
6
5
4
3
2
1
0
2009- 2008- 2007- 2006-
‘10 09 08 07
Interpretation:
9 8
8
7 6 6
6
5
4
3
2
1
0
2009-10 2008-09 2007-08
Interpretation:
Stock turnover ratio in 2007-08 was 6 times and in
2008-09, the ratio was 8 times. It’s good for company because it
ReturnonShareholder's Fund
16 14.44
14 12.37
11.27
12
9.23
10
8
6
4
2
0
2009- 2008- 2007- 2006-
‘10 09 08 07
Interpretation:
EarningPerShare
3
2.42
2.5
1.99
2
1.61
1.48
1.5
0.5
0
2009-10 2008-09 2007-08 2006-07
Interpretation:
The ratio of earning per share was increased year by
year. It is good for company because the higher EPS will make the
good image of company.
Interpretation
The picture clearly shows that the net cash flow from
operating activities has drastically decreased in 2010 compared to
year 2009 and In 2009, the net cash flow from operating activities has
drastically increased compared to that years of 2008 and 2007. In the
year 2007, the net cash from operating activities was Rs. 199,955,806
and it was good for company but in 2008 it has suddenly declined and
reached up to negative viz. (101,416,480).It happened due to increase
in debtors and it directly affected to the net cash flow from operating
activities.
• Raw-Material in Store
• Work in process
• Debtors
• Creditors
2007-08
Creditors 60
Avg.
Cre.
Openin 406,901,14
g 6
Closing 731,883,81
Purchase 4,480,207,7
Company paid their cash to the 31
creditors in 64 days in the year
2007-08 while 60 days in 2008-09. It was bad for the company because
company has to be paid their debt early from the previous year.
2007-08 2008-09
Operating Cycle Operating Cycle
RM 25 RM 20
WIP 21 WIP 11
FG 32 FG 28
DEBTORS 143 DEBTORS 130
221 189
CREDITOR 64 CREDITOR 60
S S
157 129
Research Findings
• Company has a formal and positive culture and also uses informal
communication. Sometime company use grapevine
communication also.
• Company brought FPO and increased their capital of Rs.
53,684,211 in the year 2008. It issued for starting new plant in
Dahej of Manufacturing caustic soda and chlorine. That means
company issued shares for the purpose of expansion of business
and utilized these funds in that project.
• Company believes in more retain earning and less dividend s
declared. Because company transfer their profits into general
reserves and surplus more and declaring dividends to their share
holders.
• Company’s capacity for borrowing is good because company’s
reputation in the market is high as well as it regularly paid their
Suggestions
• www.scribd.com
• www.meghmani.com
• www.sebi.gov.in