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Name of Unit: KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD. (AMUL). Anand-388001 Gujarat, India. Location : Kaira District Co-operative Milk Producers' Union Ltd Amul Dairy Road Anand. 388 001. Phone: +91 02692 256124 +91 02692 256225 Nature of the company: By nature the company is registered as Co-Operative Union Ltd. Sector and under a Co-Operative Societies act,14th December 1946. Slogan/Punch line: THE TASTE OF INDIA Website: www.amul.com www.amuldairy.org
Logo of AMUL is a ring of four hands, which are co-coordinated each other. The actual meaning of this symbol is co-ordination of hand of different people by whom this union is now at top. FIRST HAND: Is for farmers (producers), without whom the organization would not be existed. Farmers are the inspiration of the AMUL-taste of India. SECOND HAND: Is for the representatives of processors by whom the raw milk processed in to different finished products. THIRD HAND: Is for marketers without whom the products would not been able to reach to the customers. FOURTH HAND: Is for customers without whom the organization could not carry on because they are the people who consume the products.
NATURE
The name Amul itself indicates that it is a co-operative union. There are various types of co-operative society which are as under: (1) Producers or manufactures co-operative society (2) Consumer co-operative society (3) Housing co-operative society (4) co-operative farming (5) co-operative credit solvency This firm is the firm of association in which person combine together to form a society for the purpose of manufacturing goods. Although it is democratic management of industrial production. This is useful where large capital is neither necessary nor much technical and expert knowledge of the management is needed. In India some of the Sugar mill and ginning mills are running under this formation. Dairies are also adopting co-operating format. Amul is the producers' co-operative society.
COMPETITORS
Competitors are the person who produce and sales the same product as produced by the unit. Competitors affect the business with several causes. The main rivals of AMUL are as following Rich Milk Sardar milk Nestle Britannia Cheese of Le-Beon Gowardhan
ORGANIZATION STRUCTURE
B.O.D Chairman Vice Chairman Managing Director General Manager (Dairy Plant & Technology) Assistant General Manager Manager Deputy Manager Assistant Manager Superintendent Deputy Superintendent Senior Officer Assistant Junior Assistant
Workers
OBJECTIVE OF THE REPORT (1) To measure the short term solvency of the enterprise. (2) To measure the long term solvency of the enterprise. (3) To measure the enterprises operating efficiency and profitability. (4) To compare intra firm position and pattern position with an industry.
(1) To identify the magnitude & direction of changes in enterprises financial & performance. (2) To ascertain the strength & weakness of the enterprise on terms of liquidity, profitability & solvency.
PLANTS LOCATION
ANAND PLANT: Anand plant is the main plant. Most of the raw material received here. Products being manufactured here which are, Butter, Flavored milk, Ghee, Milk Powder, Baby foods, Cheese etc. MOGAR PLANT: It is situated on Anand Vadodara National Highway No. 8. It produces chocolates, Nutramul, Amullite, Amul Ganthia. This plant was established in 1973. KHATRAJ PLANT: It is situated between Nadiad Mahemdabad. It produces the Cheese. This plant also produces paneer. PUNE & KOLKATA: In Pune and Kolkata no production is done. Only milk collection and milk marketing activities are performed. CHILLING CENTRE: Kapadwanj, Balasinor, Undel, Khembe there are 120 chilling units in socities.
BANKERS OF AMUL
(1)
Kaira district Central Co-operative Bank Limited State Bank of India Bank of Baroda Bank of Maharashtra HDFC Bank Limited Corporation Bank Axis Bank
RATIO ANALYSIS
The most important task of a financial manager is to interpret the financial information in such a manner, that it can be well understood by the people, who are not well versed in financial information figures. The technique, by which it is to be calculated, is known as Ratio Analysis. 1) Percentage 2) Rate 3) Proportion Ratio Analysis is an important technique of financial analysis. It depicts the efficiency or shortfall of the organization in the form of trend Analysis. Different ratio appeal to different people managements, having the task of running business efficiency, will interest in all ratios. A Supplier of goods on credit will be partially interested in liquidity ratios, which indicate the ability of the business to pay its bills. Existing and future shareholders will indicate the ability of business to purchase. Existing and future shareholders will interest in investment ratios, which indicate the level of return that can be expected on an investment in business. Major customers, intent on having a continuing source of supply, will be interested in the financial stability, as reveled by the capital structure, liquidity and profitability ratios. Debenture and loan stock holders will be interested in ability of a business will be interested in the ability of a business to pay interest, and ultimately to repay capital. A banker, gibing only short-term loans, will be interested mainly in the liquidity of the business, and its ability to repay those loans.
STEPS IN RATIO ANALYSIS Collection of information, which are relevant from the financial statements and then to calculate different ratios accordingly. Comparison of computed ratios of the same organization or with the industry ratios. Interpretation, drawing of the inference and report-writing.
RATIO ANALYSIS Ratio analyses are a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two mathematical expressions and as the relationship between two or more things. In financial analysis a ratio is used as a benchmark for evaluating the financial position and performance of a firm. The relationship between two accounting figures, expressed mathematically, is known as a financial ratio.
TYPES OF RATIOS Several ratios; calculated from the accounting data, can be grouped into various classes according to financial activity or function to be evaluated. We may classify the ratios into the following categories. Liquidity ratios Leverage ratios
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LIQUIDITY RATIO
It is extremely essential for a firm to be able to meet its obligations as they become due. Liquidity ratios measure the ability of the firm to meet its current obligations. In fact, analyses of liquidity needs the preparation of cash budgets and cash and fund flow statements but liquidity ratios by establishing a relationship between cash and other current assets to current obligations, provide a quick current assets to current obligations, provide a quick measure of liquidity. A firm should ensure that it should not suffer from lack of liquidity, and also that it does not have excess liquidity. The failure of company to meet its current obligation due to lack of sufficient liquidity, will result in poor credit worthless, loss of creditors confidence for even in legal tangles resulting in the closure of the company. A very high degree of liquidity is also bed. the firms fund will be unnecessarily tied up in current assets therefore, it is necessary to strike a proper balance between high liquidity and lack of liquidity. The most common ratios, which indicate the extent of liquidity, are Current ratio Quick ratio
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CURRENT RATIO Current ratio is the ratio of total current assets to total current liabilities. Current assets of a firm represent those assets which can be in ordinary course of business converted into cash with in short period of time and current liabilities defined as liabilities which are short term manufacturing obligation to meet current assets. To measure the financial liquidity of Amul Current assets = Stock, Advance & debtors, Cash & Bank Balance. Current liabilities = Deposits, Due to societies, O/s against Expenses and Purchases, Sundry Creditors, Provisions. Current assets Current Ratio = ________________ Current liabilities YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 CURRENT ASSETS 16102.2 18596.49 18990.94 19874.21 28995.9 28874.39 CURRENT LIABILITY 6786 8988.56 9460.79 12106.54 13892.41 17801.69 RATIO (C.A/C.L) 2.37 2.07 2.12 1.64 2.09 1.62
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Current Ratio
2.5 2 1.5 1 0.5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION The ideal Current Ratio of any firm is 2:1. In AMUL first three year the ratio is more than 2, it indicates good financial ability of the sector. But after that the ratio is declining because of the increase in Current Liability. It indicates that day by day the amounts of creditors are increasing which is not good for the sector.
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QUICK RATIO Quick ratio is also called acid test ratio. It is the ratio between quick current assets and current liabilities. It is calculated by dividing the quick assets by current claim. Quick ratio is the measurement of firms ability to convert its current assets quickly into cash in order to meet its current claim. The term quick assets refers to current assets which can be converted into cash immediately or at a short notice without reduction in value of quick ratio. Quick Assets = Stock, due from societies, Advances, trade and Sundry Debtors Cash and Bank Balance
Quick Ratio
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Quick Ratio 1.67 1.19 0.96 0.87 0.95 0.53
TIMES
2003-04
2004-05
2005-06 YEAR
2006-07
2007-08
2008-09
INTERPRETATION The ideal Quick Ratio is 1:1. In AMUL the Quick Ratio is more than 1 in 2003-04 and 2004-05. But than after it started declining and reached below 1 for the next four years. The reason is continuous increase in the current liability.
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LEVERAGE RATIO
In the short term creditors like bankers and suppliers of raw material; are more concerned with firms current debt-paying ability, on the other hand, long-term creditors like debenture holders, financial institution are more concerned with the firms long term financial strength In fact a firm should have short as well as long term financial position. To judge the longterm financial position of the firms financial leverage or capital structure ratios are calculated. These ratios indicate funds provided by owners and lenders. As a general rule, there should be an appropriate mix of debt and owners equity in financing the firms assets. STOCK TURNOVER RATIO This ratio indicates the efficiency of the firm in selling its product. It is calculated by dividing the cost of good sold by average inventory. Average Stock Inventory turnover = ___________________ 300 Cost of Goods Sold
Opening stock + Purchase of Milk + Purchase of Raw Material + Purchase expenses Closing stock
Inventory Turnover
40 30 20 10 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Year
INTERPRETATION From the above ratio we can say that AMUL is turning its inventory of finished good into sales in 31 days in 2003-04 and 2004-05, 38 days in 2005-06, 34 days and 35 days in 2006-07 and 2007-08 respectively. It is good for any co-operative sector.
Days
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DEBTORS TURNOVER RATIO A firm sells goods for cash and credit is used as a marketing tool by a number of companies. When the firm extends credit to its customer. Book debts (debtors or receivables) are created in the firms accounts. Book debts are expected to be converting into cash over a short period and, therefore are included in current assets. The liquidity position of the firm depends on the quality of debtors to a great extent. Financial analyses apply three ratios to judge the quality or liquidity debtors: (a) debtor turnover (b) Collection period and (c) again schedule of debtors. Debtors turnover Ratio can be found out dividing Average Debtors by Sales Sales = Net Sales of Milk and Milk products Debtors = Trade Debtors, Sundry debtors,
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INTERPRETATION From the above ratios we can say that AMULS Debtors remain outstanding for 37 days in 2003-04, 34 days in 2004-05, 33 days, 25 days, 21 days in 2005-06, 2006-07 and 2007-08 respectively. The Collection period of Debtors is decreasing day by day. It is good sign for AMUL.
Days
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CREDITOR TURNOVER RATIO Creditor turnover ratio is computed by net credit purchases to average creditors. Creditors = Outstanding against Purchases + Societies + Outstanding against Expenses + Sundry Creditors
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INTERPRETATION From the above we can say that the payment of Creditors is outstanding by AMUL. 43 days in 2003-04 and 2004-05, 42 days, 46 days, 39 days in 200506, 2006-07 and 2007-08 respectively. The payment period to Creditor remain same in every year. It is good for AMUL.
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FIXED ASSETS TURNOVER RATIO Firm may wish to know its efficiency of utilizing fixed assets separately for AMUL the fixed assets turnover ratio is Sales Fixed Assets Turnover = __________________ Net Fixed Assets YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SALES 54088.29 59459.07 70206.23 81631.69 107187.29 137212.35 NET FIXED ASSETS 9588.26 6107.85 4968.66 5371.69 6122.97 RATIO (Sales/N.F.A) 5.64 9.73 14.13 15.20 17.51
INTERPRETATION From the above ratio we can say that in AMUL Fixed Assets is recovered in 5.64 times in 2003-04, 9.73 times in 2004-05, 14.13 times, 15.2 times, 17.51 times in 2005-06, 2006-07 and 2007-08 respectively. We can say that the total Fixed Assets Turnover is increasing day by day. It is good sign for AMUL.
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WORKING CAPITAL TURNOVER RATIO A firm may also like to relate net working capital to sales. It may thus computer net working capital turnover by dividing sales by net working capital turnover for Amul the ratio is
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N et C u rre n t As se t T u rn o v er
25 20 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
S eries 1
INTERPRETATION From the above we can say that AMUL is able to recover its Working Capital 5.8 times in 2003-04, 6.18 times in 2004-05, 7.37 times in 2005-06, 10.51 times 2006-07 and 21.42 times in 2007-08. Working Capital Turnover is also increasing day by day. It is good and from it AMUL can generate more and more sales.
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TOTAL ASSETS TURNOVER RATIO Total Assets Turnover Ratio shows the firms ability in generating sales from all financial sources committed to total assets thus Sales Total Assets Turnover = _____________ Total Assets Total assets (TA) include Net fixed assets (NFA) and Current Assets (CA) for Amul the ratio is
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INTERPRETATION From the above data we can say that in AMUL Total Asset Turnover is recovered 2.05 times in 2003-04, 2.35 times in 2004-05, 2.85 times, 3.17 times, 2.99 times in 2005-06, 2006-07 and 2007-08 respectively. Till 200708 the Total Asset Turnover Ratio is increasing because the total asset is quiet same in every year. But in 2007-08 the Total Assets is increasing by 40% from 2006-07. So the turnover ratio is declining in that year.
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NET ASSETS TURNOVERS The firm can compute net assets turnover simply by dividing sales by net assets (NA) net assets turnover may also called capital employed turnover for Amul the ratio is
Net Assets = Net Fixed Asset + Current Asset after deducting Current Liability
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INTERPRETATION From the above data we can say that Assets Turnover in AMUL during 2003-04 is 2.86 times, 6.15 times in 2004-05, 4.84 in 2005-06, 6.21 times in 2006-07 and 9.63 times in 2007-08 respectively. The Net Asset Turnover is increasing day by day. But the total Current Liability is also increasing and it is directly affected to Net Asset Turnover. If the Current Liability is decreased than the Net Asset can be Turnover by more than this ratio.
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PROFITABILITY RATIOS
A company should earn profit to survive and grow over a long period of time. Profit are essential but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits irrespective of social consequences and profit is looked upon as a term of above since some firms always want to maximize profits at due cost of employees, customers, and society. Except such infrequent cases, it is fact profit must be earned to sustain the operation of the business to be able to obtain funds from investor for expansion and growth and to contribute towards the social overhead for the welfare of society. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate output of the company; and it will have no future if it fails to make sufficient profits. There fore financial manager should continuously evaluate the efficiency of its company in term of profits. Generally two types of profitability ratios are calculated. Profitability in relation to sales Profitability in relation to investment Measures of Profit Profit can be measured in various ways 1) Gross Profit (2) Net Profit
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GROSS PROFIT TO SALES RATIO Gross profit ratio is calculated by dividing Gross Profit by sales. Here gross profit is the different between sales and the manufacturing cost of good sold. Sales Cost of Good sold ______________________ 100 Sales SALES 54088.29 59459.07 70206.23 81631.69 107187.29 137212.35 RATIO (G.P./Sales)*10 0 19.27 20.58 19.87 19.44 17.73
INTERPRETATION From the above ratio we can say that Gross Profit Ratio in 2003-04 is 19.27%, 20.58% in 2004-05 20.58%, 19.87% in 2005-06, 19.44% in 200607 and 17.73% in 2007-08 respectively. The total amount of Gross Profit is
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increasing every year. But the ratio is decreasing; the main reason is increase in the Purchase Price Milk and Raw Material. NET PROFIT RATIO Net Profit is obtained when operating expenses; interest and taxes are subtracted from gross-profit. The net profit margin ratio is measured by dividing profit after tax by sales. Net profit Net profit margin = __________ 100 Sales YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.46 311.23 323.74 411.50 451.51 575.53 SALES 54088.29 59459.07 70206.23 81631.69 107187.29 137212.35 RATIO (N.P./Sales) 0.46 0.52 0.46 0.50 0.42 0.42
INTERPRETATION From the above figure we can say that the percentage of Net Profit is 0.46% in 2003-04 and 2005-06. In 2004-05 it is 0.52%, 0.50% in 2006-07 and 0.42% in 2007-08 respectively. The total amount of sales is increased every
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year but at the other side total operating expenses is also increased day by day. So it directly affect to Net Profit Ratio of AMUL. OPERATING EXPENSES RATIO Operating Expenses ratio is found out by dividing operating cost by sales.
100
RATIO (O.C./Sales) 98 98 99 98 99
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INTERPRETATION From the above data we can say that Operating Expense remains same during the 2003-04, 2004-05, 2006-07 i.e.98 %. In 2005-06 and 2007-08 it was 99%. The Operating Expenses of AMUL is increasing out of 1 Rs of sales 98 and 99 paisa is consumed in operating Expenses. The main reason is increase in Marketing, Packaging, and Processing Expenses and the price of Raw Material and Milk.
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RETURN ON CAPITAL EMPLOYEED Return on Capital Employed Ratio is found out by dividing Net Profit by Capital Employed Capital Employed = Total Assets Misc. Expenses Current Liability Net profit Return on Capital Employed = __________
100
Capital Employed
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INTERPRETATION From the above data we can say that Return on Capital Employed during 2003-04 is 1.29%. It was 1.91% in 2004-05, 2.15% in 2005-06, 3.03% in 2006-07 and 3.84% in 2007-08 respectively. Return on Capital Employed is increasing day by day. The recover Ratio of Capital Employed in the business is increasing it is good sign for AMUL.
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RETURN ON SHAREHOLDER FUND Return on Shareholder Fund Ratio is found out by dividing Net Profit by Shareholders Fund. Shareholders Fund = Equity Share Capital + Reserve and Surplus Misc. Expenses
100
Shareholders Fund YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.46 311.23 323.74 411.50 451.51 575.53 SHAREHOLDER S FUND 3201.91 3452.65 3683.51 4138.50 4486.30 RATIO (N.P. /S.F.) 7.88 9.01 8.78 9.94 10.06
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INTERPRETATION From the above ratio we can say that the Return on Shareholder Fund is 7.88% in 2003-04, 9.01% in 2004-05, 8.78% in 2005-06, 9.94% in 2006-07, and 10.06% in 2007-08 respectively. The Return on Shareholders Fund is increasing every year. So it is good sign that the recover ratio of amount invested is increasing.
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The profitability of the common shareholders investment can also be measured in many other ways on such measure is to calculate the earning per share. The earning per share is calculated by dividing the profit after taxes by the total number of common (ordinary) shares outstanding. EPS calculation made over years indicate whether or net the firms earning power on per-share basis has changed over that period. Earning per share of the company should be compared with the industry average and the earning per share of other firms. Earning per share simply shows the profitability of the firm on per share basis.
Net Profit Earning per share = __________________________________ Number of common shares outstanding
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INTERPRETATION From the above data we can say that Earning per Share is 20.81Rs in 200304, 22.31 Rs in 2004-05, 20.25 Rs in 2005-06, 20.78 Rs in 2006-07 and 20.26 Rs in 2007-08. Earning per Share ratio is comparatively better for AMUL. The shares of AMUL are distributed only to the Societies, so the main earning is distributed to its Societies.
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DIVIDEND PAYOUT RATIO Dividend payout ratio is known as a payout ratio. It measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. In other words, the D/P ratio shows what percentage share the net profit after taxes and preference dividend is paid out as a dividend to the equity holders. It can be calculated by dividing the total dividend paid to owners by the total profits/earnings available to them. Alternatively it can be found out by dividing the DPS by the EPS. The rate of dividend per ordinary share = 15 %
(1) Dividend =
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DIVIDENED EARNING PER SHARE 14.53 20.81 14.53 22.31 14.60 20.25 14.50 20.78 14.60 20.26
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INTERPRETATION From the above ratio we can say that Dividend Pay Out Ratio is 69.82% in 2003-04, 64.95% in 2004-05, 72.10% in 2005-06, 69.78% in 2006-07 and 72.06 in 2007-08. From the Total Earning per Share averagely 70% amount is distributed to the Shareholders.
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NET WORTH RATIO (T.D./N.W) 3201.91 3.38 3452.65 3.00 3754.41 2.45 4221.59 1.74 4591.36 1.28
Debt-Equity Ratio
4 3 2 1 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION From the above ratio it is clear that Debt-Equity Ratio in 2003-04 is 3.38 times. It was 3.0 times in 2004-05, 2.45 times in 2005-06, 1.74 times in 2006-07 and 1.28 times in 2007-08. The ideal Debt-Equity Ratio is 2:1, in AMUL 2003-04, 2004-05 and 2005-06 the Ratio is more than 2, because of the higher amount of Long Term Debt but than after it is declining, so it shows that Total Long Term Debt is decreasing. It is good sign for AMUL.
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PROPRIETARY RATIO Proprietary Ratio is found out by dividing Proprietary Fund by Total Assets. Proprietary Fund = Equity Share Capital + Reserve and Surplus Proprietary fund Proprietary Ratio = ____________ Total Assets YEAR PROPRIETAR Y FUND 2003-04 3201.01 2004-05 3452.65 2005-06 3754.41 2006-07 4221.59 2007-08 4591.36 2008-09 TOTAL ASSETS 26326.08 25277.94 24595.17 25761.82 35864.51 RATIO (Sales/T.A.) 12.16 13.66 15.26 16.39 12.80
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Proprietary Ratio
20 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION From the above ratio it is clear that Proprietary Ratio for the year 2003-04 is 12.16%. In 2004-05 it is 13.66%, in 2005-06 it is 15.26%, in 2006-07 it is 16.39% and in 2007-08 it is 12.8%. Out of total Assets the above percentage is invested by Proprietor and it is not better but we can say it is good for any Co-Operative Society.
OTHER RATIOS
In this Ratio we find following types of Ratio Debt Ratio Debtors Asset Ratio
DEBT RATIO: This Ratio can be found out by dividing Total Debt by Net Asset. Debt = Loans + Debentures + Fixed Deposit Net Asset = Total Assets Current Liability
Total Debt
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Debt Ratio =
100
Debt Ratio
80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
INTERPRETATION
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From the above ratio we can say that Debt Ratio in 2003-04 is 55.48%. It was 69.75% in 2004-05, 64.5% in 2005-06, 54.25% in 2006-07 and 130.65% in 2007-08. It is comparatively good, except 2007-08.
TOTAL LIABILITY TO ASSET RATIO This Ratio can be found out by dividing Total Liability by Total Asset Total Liability = Debentures + Loans + Fixed Deposit + Current Liability Total Liability ____________ Total Assets YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 TOTAL LIABILITY 17618.62 19296.36 18608.22 18796.43 28947.46 TOTAL ASSETS 26326.08 25277.94 24595.17 25761.82 35864.51 RATIO (Sales/T.A.) 67.00 76.00 76.00 73.00 81.00
100
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INTERPRETATION From the above ratio we can say that Total Liability to Total Asset Ratio in 2003-04 is 67%. In 2004-05 and 2005-06 it is 76%, in 2006-07 it is 73% and in 2007-08 it is 81%. From the above ratio we interpret that in compare of Total Assets. The percentage of Total Liability is comparatively less so it indicate good sign for AMUL. CHALLENGES TO BE MET Expansion upgrading of plant and equipment to met increasing demanded for quality and quantity with the help of better-qualified personnel. Rapid increase in productivity while respecting the basic man land animal dynamic that is control to dairy and agriculture development in India Development of new markets and expansion of old ones replacing additional system with quality packaged milk products and vegetable. Creating a national information network to ensure that accurate timely information is available to all who need it.
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Rapid progress towards the highest qualify standard strengthens institutions leaders, managers and members.
CONCLUSION Amul is a highly successful co-operative sector in world. Which truly work for farmers, who are the members of union all departments are working well and help the union to reach toward top position. I have list out some recommendations they are follow. Amul has competitive established system. The four hands of Amul are working successfully with corporation. The people of Amul are very cooperative and enthusiastic. Amul is famous as Anand pattern for its cooperative organization in world. So its a matter proud for people of Anand as well as India. Amul is really The Taste of India. By this summer internship report anybody can get the overview of the condition of the financial statement and the organizations past and present
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situation. The ratio analysis shows the direction of the organizations growth.
According to my point, success factor being Amul are hard work discipline, co-operative structure, production technology development, and the proper method for paying the debt and collecting the payment. The main cost for AMUL is transportation cost for collecting the milk from different villages. But now AMUL have the chilling facilities to some big villages (milk collection centre). So that the milk is stored up to 2-3 days. Then AMUL collect the milk from there after 3 days.
BIBLIOGRAPHY
(1) Companys Annual Reports (last 6 years) (2) www.Google.com (3) www.Amuldairy.com (4) Prasanna Chandra, Financial Management Fourth Edition
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