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’ Name of Unit: KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER’S 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 THE AMUL
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.
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 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
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
GOALS & OBJECTIVES OF AMUL
The main objectives of the co-operative society are as follows: It is voluntary organization. A member can continue this membership as long as he or she desire and can by giving a notice withdraw his or her capital and ceased to be a member. There is no limit to its membership face value of one share is generally kept between Rs 1 and Rs 10. Thus small value of share makes it possible to enroll a large number of persons because even a poor man can affected by this much amount. Its object is to serve the members and to earn the profit.
(4) To compare intra firm position and pattern position with an industry. 6 . (3) To measure the enterprise’s operating efficiency and profitability. (2) To ascertain the strength & weakness of the enterprise on terms of liquidity. profitability & solvency. (2) To measure the long term solvency of the enterprise. PURPOSE OF THE REPORT (1) To identify the magnitude & direction of changes in enterprise’s financial & performance.OBJECTIVE OF THE REPORT (1) To measure the short term solvency of the enterprise.
Cheese etc. Balasinor.PLANTS LOCATION ANAND PLANT: Anand plant is the main plant. Undel. Flavored milk. KHATRAJ PLANT: It is situated between Nadiad – Mahemdabad. It produces chocolates. Products being manufactured here which are. Baby foods. Only milk collection and milk marketing activities are performed. It produces the Cheese. This plant also produces paneer. 8. Most of the raw material received here. 7 . Khembe there are 120 chilling units in socities. CHILLING CENTRE: Kapadwanj. Nutramul. Ghee. Amullite. MOGAR PLANT: It is situated on Anand – Vadodara National Highway No. This plant was established in 1973. Amul Ganthia. Milk Powder. PUNE & KOLKATA: In Pune and Kolkata no production is done. Butter.
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 (2) (3) (4) (5) (6) (7) 8 .
Existing and future shareholders will indicate the ability of business to purchase. Different ratio appeal to different people managements. gibing only short-term loans. A banker. 1) Percentage 2) Rate 3) Proportion Ratio Analysis is an important technique of financial analysis. by which it is to be calculated. The technique. having the task of running business efficiency. 9 . and its ability to repay those loans. and ultimately to repay capital. Major customers. which indicate the ability of the business to pay its bills. liquidity and profitability ratios. A Supplier of goods on credit will be partially interested in liquidity ratios. that it can be well understood by the people. intent on having a continuing source of supply. will interest in all ratios. who are not well versed in financial information figures. It depicts the efficiency or shortfall of the organization in the form of trend Analysis. as reveled by the capital structure. is known as ‘Ratio Analysis’. will be interested in the financial stability. will be interested mainly in the liquidity of the business. 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. Existing and future shareholders will interest in investment ratios.RATIO ANALYSIS The most important task of a financial manager is to interpret the financial information in such a manner. which indicate the level of return that can be expected on an investment in business.
drawing of the inference and report-writing.STEPS IN RATIO ANALYSIS Collection of information. is known as a financial ratio. The relationship between two accounting figures. expressed mathematically. Interpretation. calculated from the accounting data. TYPES OF RATIOS Several ratios. We may classify the ratios into the following categories. can be grouped into various classes according to financial activity or function to be evaluated. RATIO ANALYSIS Ratio analyses are a powerful tool of financial analysis. In financial analysis a ratio is used as a benchmark for evaluating the financial position and performance of a firm. A ratio is defined as “the indicated quotient of two mathematical expressions” and as “the relationship between two or more things”. Liquidity ratios Leverage ratios 10 . Comparison of computed ratios of the same organization or with the industry ratios. which are relevant from the financial statements and then to calculate different ratios accordingly.
The failure of company to meet its current obligation due to lack of sufficient liquidity. will result in poor credit worthless. provide a quick measure of liquidity. are Current ratio Quick ratio 11 . the firms fund will be unnecessarily tied up in current assets therefore. In fact. and also that it does not have excess liquidity. loss of creditor’s confidence for even in legal tangles resulting in the closure of the company. 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. Profitability ratios Capital Structure Ratio Other Ratio LIQUIDITY RATIO It is extremely essential for a firm to be able to meet its obligations as they become due. A very high degree of liquidity is also bed. The most common ratios. it is necessary to strike a proper balance between high liquidity and lack of liquidity. A firm should ensure that it should not suffer from lack of liquidity. which indicate the extent of liquidity. Liquidity ratios measure the ability of the firm to meet its current obligations. provide a quick current assets to current obligations.
Due to societies.64 2.37 2.L) 2. O/s against Expenses and Purchases.21 28995. Sundry Creditors. To measure the financial liquidity of Amul Current assets = Stock.49 18990.41 17801.56 9460. 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. Cash & Bank Balance. Current assets Current Ratio = ________________ Current liabilities YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 CURRENT ASSETS 16102.54 13892.CURRENT RATIO Current ratio is the ratio of total current assets to total current liabilities.94 19874.2 18596.9 28874.69 RATIO (C.09 1.39 CURRENT LIABILITY 6786 8988.62 12 .A/C.79 12106. Current liabilities = Deposits. Provisions. Advance & debtors.07 2.12 1.
Current Ratio 2.5 2 1. But after that the ratio is declining because of the increase in Current Liability. 13 . In AMUL first three year the ratio is more than 2.5 1 0. It indicates that day by day the amounts of creditors are increasing which is not good for the sector.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. it indicates good financial ability of the sector.
96 0. Advances. It is calculated by dividing the quick assets by current claim. due from societies. Quick Assets = Stock.54 13892.31 9078.19 0. It is the ratio between quick current assets and current liabilities.QUICK RATIO Quick ratio is also called acid test ratio.69 14 RATIO (Q.87 0. 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.53 .79 12106. Quick ratio is the measurement of firm’s ability to convert its current assets quickly into cash in order to meet its current claim.56 9460.A/C.42 CURRENT LIABILITY 6786 8988.95 0. trade and Sundry Debtors Cash and Bank Balance Quick assets Quick Ratio = ______________ Current liabilities YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 QUICK ASSETS 11365.21 10533.67 1.L) 1.02 9433.41 17801.37 10686.65 13258.
Quick Ratio 1.8 0.53 TIMES 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 2008-09 INTERPRETATION The ideal Quick Ratio is 1:1.8 1. The reason is continuous increase in the current liability.4 1.6 0.2 0 Quick Ratio 1.19 0. But than after it started declining and reached below 1 for the next four years.67 1. 15 .6 1. In AMUL the Quick Ratio is more than 1 in 2003-04 and 2004-05.4 0.2 1 0.96 0.95 0.87 0.
LEVERAGE RATIO In the short term creditors like bankers and suppliers of raw material. As a general rule. long-term creditors like debenture holders. These ratios indicate funds provided by owners and lenders. To judge the longterm financial position of the firm’s financial leverage or capital structure ratios are calculated. Average Stock Inventory turnover = ___________________ × 300 Cost of Goods Sold Cost of good sold = Opening stock + Purchase of Milk + Purchase of Raw Material + Purchase expenses – Closing stock Opening Stock + Closing Stock Average Inventory = ____________________________ 16 . there should be an appropriate mix of debt and owner’s equity in financing the firm’s assets. on the other hand. STOCK TURNOVER RATIO This ratio indicates the efficiency of the firm in selling its product. are more concerned with firm’s current debt-paying ability. financial institution are more concerned with the firm’s long term financial strength In fact a firm should have short as well as long term financial position. It is calculated by dividing the cost of good sold by average inventory.
G.97 RATIO (A.S)*300 31 days 31 days 38 days 34 days 35 days 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 2004-05.48 65762.21 10214.2 YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 AVGERAGE STOCK 4493./C.S.20 88181.83 COST OF GOODS SOLD 43660.41 7199 7471. 34 days and 35 days in 2006-07 and 2007-08 respectively.28 47221. It is good for any co-operative sector. Days 17 .49 4900.13 56259. 38 days in 2005-06.O.
69 107187. Book debts (debtors or receivables) are created in the firm’s accounts. Sundry debtors./SALES)*300 37 days 34 days 33 days 25 days 21 days 18 . Book debts are expected to be converting into cash over a short period and.35 RATIO (A.29 59459. therefore are included in current assets. Debtors Debtors Turnover Ratio = ________ × 300 Sales YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 AVGERAGE DEBTORS 6690.23 81631.D.52 7679. 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.15 6797.77 SALES 54088.07 70206.29 137212. Debtor’s turnover Ratio can be found out dividing Average Debtors by Sales Sales = Net Sales of Milk and Milk products Debtors = Trade Debtors.DEBTORS TURNOVER RATIO A firm sells goods for cash and credit is used as a marketing tool by a number of companies.62 6759.25 7625. When the firm extends credit to its customer.
It is good sign for AMUL. 21 days in 2005-06. 25 days. Days 19 .Debtors Turnover Ratio 40 30 20 10 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Year INTERPRETATION From the above ratios we can say that AMUL’S Debtors remain outstanding for 37 days in 2003-04. 33 days. 34 days in 2004-05. The Collection period of Debtors is decreasing day by day. 2006-07 and 2007-08 respectively.
1 12312.59 49931.P.06 8095.87 RATIO (A.C.97 9798. Creditors = Outstanding against Purchases + Societies + Outstanding against Expenses + Sundry Creditors Creditor Turnover Ratio = _ Average Creditors × 300 Net Purchase YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 AVGERAGE CREDITORS 5930. /N.37 7098.94 64034.CREDITOR TURNOVER RATIO Creditor turnover ratio is computed by net credit purchases to average creditors.)*300 43 days 43 days 42 days 46 days 39 days 20 .25 NET PURCHASE 41188.03 57374.16 93690.
43 days in 2003-04 and 2004-05. 39 days in 200506. The payment period to Creditor remain same in every year. 46 days. 2006-07 and 2007-08 respectively.Creditors Turnover Ratio 50 Days 45 40 35 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Year INTERPRETATION From the above we can say that the payment of Creditors is outstanding by AMUL. 42 days. It is good for AMUL. 21 .
64 9.A) 5. We can say that the total Fixed Assets Turnover is increasing day by day.13 15.23 81631. 9.69 6122.2 times.20 17.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 59459.97 RATIO (Sales/N.F. 22 . It is good sign for AMUL.51 times in 2005-06. 17. 2006-07 and 2007-08 respectively.66 5371.07 70206.64 times in 2003-04.51 Fixed Asset Turnover Ratio 20 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Series1 INTERPRETATION From the above ratio we can say that in AMUL Fixed Assets is recovered in 5.29 137212.69 107187.73 times in 2004-05.13 times.73 14.35 NET FIXED ASSETS 9588. 14.85 4968.26 6107. 15.
C.35 WORKING CAPITAL 9320.) 5.93 9530. It may thus computer net working capital turnover by dividing sales by net working capital turnover for Amul the ratio is Net Current assets Turnover = Sales _______________ Working Capital YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SALES 54088.37 10.18 7.67 5033.WORKING CAPITAL TURNOVER RATIO A firm may also like to relate net working capital to sales.80 6.29 59459.29 137212.2 9607.89 RATIO (Sales/W.15 7767.42 23 .69 107187.23 81631.07 70206.51 21.
It is good and from it AMUL can generate more and more sales. 24 .18 times in 2004-05.51 times 2006-07 and 21. 10. 6. Working Capital Turnover is also increasing day by day.42 times in 2007-08. 7.37 times in 2005-06.8 times in 2003-04.N e t C u rren t As s et T u rn o v e r 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.
35 2.99 25 .05 2.94 24595.69 107187.A.17 25761.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 YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SALES 54088.07 70206.51 RATIO (Sales/T.85 3.29 137212.82 35864.29 59459.35 TOTAL ASSETS 26326.17 2.08 25277.) 2.23 81631.
Till 200708 the Total Asset Turnover Ratio is increasing because the total asset is quiet same in every year.99 times in 2005-06.85 times.35 times in 2004-05.Total Asset Turnover 4 3 2 1 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above data we can say that in AMUL Total Asset Turnover is recovered 2. But in 2007-08 the Total Assets is increasing by 40% from 2006-07.17 times. So the turnover ratio is declining in that year.05 times in 2003-04. 3. 2. 26 . 2. 2006-07 and 2007-08 respectively. 2.
81 13139.23 81631.86 RATIO (Sales/N.84 6.63 27 .29 59459.07 70206.A.93 14498.) 2.36 11126.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 Net assets turnover = Sales Net Assets YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 SALES 54088.18 4.21 9.86 6.69 107187.29 NET ASSETS 18908.46 9607.
6. If the Current Liability is decreased than the Net Asset can be Turnover by more than this ratio. The Net Asset Turnover is increasing day by day.15 times in 2004-05. 28 .84 in 2005-06. But the total Current Liability is also increasing and it is directly affected to Net Asset Turnover.86 times.21 times in 2006-07 and 9.63 times in 2007-08 respectively. 6. 4.Net Asset Turnover 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above data we can say that Assets Turnover in AMUL during 2003-04 is 2.
PROFITABILITY RATIOS A company should earn profit to survive and grow over a long period of time. Profit is the ultimate output of the company. customers. and it will have no future if it fails to make sufficient profits. Profit is the difference between revenues and expenses over a period of time. Generally two types of profitability ratios are calculated. Except such infrequent cases. 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. There fore financial manager should continuously evaluate the efficiency of its company in term of profits. and society. 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. 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 29 .
75 15869.27 20.49 19005.01 12235.94 13946.GROSS PROFIT TO SALES RATIO Gross profit ratio is calculated by dividing Gross Profit by sales.58%.44% in 200607 and 17.P.27%.29 137212.32 Gross Profit Ratio 21 20 19 18 17 16 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above ratio we can say that Gross Profit Ratio in 2003-04 is 19./Sales)*100 19. But the ratio is decreasing.73 Gross profit margin = YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 GROSS PROFIT 10428.69 107187.87% in 2005-06. the main reason is increase in the Purchase Price Milk and Raw Material. 19.58 19. 19.73% in 2007-08 respectively. 30 . The total amount of Gross Profit is increasing every year.07 70206.23 81631. Here gross profit is the different between sales and the manufacturing cost of good sold. Sales – Cost of Good sold ______________________ × 100 Sales SALES 54088.87 19.29 59459.35 RATIO (G. 20.58% in 2004-05 20.44 17.
50% in 2006-07 and 0.46% in 2003-04 and 2005-06.35 RATIO (N.2 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SALES 54088.52 0.07 70206./Sales) 0.42 0.46 311.23 81631.42 INTERPRETATION From the above figure we can say that the percentage of Net Profit is 0.6 0.51 575.74 411.46 0.42% in 2007-08 respectively.P.53 Net Profit Ratio 0. OPERATING EXPENSES RATIO 31 .23 323. In 2004-05 it is 0.29 137212.50 0.69 107187.52%. The total amount of sales is increased every year but at the other side total operating expenses is also increased day by day. The net profit margin ratio is measured by dividing profit after tax by sales.4 0. Net profit Net profit margin = __________ × 100 Sales YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.46 0. 0. interest and taxes are subtracted from gross-profit. So it directly affect to Net Profit Ratio of AMUL.50 451.29 59459.NET PROFIT RATIO Net Profit is obtained when operating expenses.
62 SALES 54088.29 59459./Sales) 98 98 99 98 99 32 .35 RATIO (O.29 137212.45 69636.23 81631. Operating Cost = Total Cost – Interest – Provision – Closing Stock Operating Cost Operating Cost Ratio = __________ Sales × 100 YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 OPERATING COST 53422.Operating Expenses ratio is found out by dividing operating cost by sales.15 106956.07 70206.1 80627.69 107187.7 58785.C.
2006-07 i.5 99 98. RETURN ON CAPITAL EMPLOYEED 33 . 2004-05. Packaging.e. The Operating Expenses of AMUL is increasing out of 1 Rs of sales 98 and 99 paisa is consumed in operating Expenses. and Processing Expenses and the price of Raw Material and Milk.5 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above data we can say that Operating Expense remains same during the 2003-04. The main reason is increase in Marketing.5 98 97.98 %. In 2005-06 and 2007-08 it was 99%.Operating Cost Ratio 99.
91 2.15 3.P.19 11767.50 451.Return on Capital Employed Ratio is found out by dividing Net Profit by Capital Employed Capital Employed = Total Assets – Misc./C.48 13572.23 323.38 15063.29 1.09 16289.53 CAPITAL EMPLOYED 19540. Expenses – Current Liability Net profit Return on Capital Employed = __________ × 100 Capital Employed YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.) 1.46 311.74 411.84 Return On Capital Employed 5 4 3 2 1 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 34 .51 575.E.44 RATIO (N.03 3.
RETURN ON SHAREHOLDER FUND 35 . The recover Ratio of Capital Employed in the business is increasing it is good sign for AMUL.84% in 2007-08 respectively. 3.03% in 2006-07 and 3.15% in 2005-06.29%.INTERPRETATION From the above data we can say that Return on Capital Employed during 2003-04 is 1.91% in 2004-05. It was 1. Return on Capital Employed is increasing day by day. 2.
P.46 311.) 7. /S.01 8.65 3683.88 9.Return on Shareholder Fund Ratio is found out by dividing Net Profit by Shareholders Fund.91 3452.74 411.78 9.30 RATIO (N.50 451.06 Return On Shareholder Fund 15 10 5 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION 36 .F. Expenses Net profit Return on Shareholders Fund = __________ × 100 Shareholders Fund YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.51 4138.53 SHAREHOLDER S FUND 3201. Shareholders Fund = Equity Share Capital + Reserve and Surplus – Misc.50 4486.51 575.94 10.23 323.
9. 9.01% in 2004-05. EARNING PER SHARE 37 .From the above ratio we can say that the Return on Shareholder Fund is 7.88% in 2003-04.94% in 2006-07. and 10. 8.78% in 2005-06.06% 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.
50 451.81 22.13 13.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.51 575.25 20. Net Profit Earning per share = __________________________________ Number of common shares outstanding YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT 252.P.95 15.80 22.74 411.26 38 .23 323. OF SHARES O/S 12. The earning per share is calculated by dividing the profit after taxes by the total number of common (ordinary) shares outstanding. Earning per share of the company should be compared with the industry average and the earning per share of other firms. EPS calculation made over years indicate whether or net the firms earning power on per-share basis has changed over that period.97 19.53 NO. Earning per share simply shows the profitability of the firm on per share basis.29 RATIO (N.31 20.78 20. /Share) 20.46 311.
31 Rs in 2004-05. The shares of AMUL are distributed only to the Societies.78 Rs in 2006-07 and 20. Earning per Share ratio is comparatively better for AMUL.Earnings Per Share 23 22 21 20 19 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above data we can say that Earning per Share is 20. DIVIDEND PAYOUT RATIO 39 .26 Rs in 2007-08. 22. 20. 20.25 Rs in 2005-06. so the main earning is distributed to its Societies.81Rs in 200304.
It measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. provided for Dividend ________________ × 100 Earning per share (1) Dividend payout ratio = Dividend per share ________________ × 100 Earning per share 40 . Alternatively it can be found out by dividing the DPS by the EPS. The rate of dividend per ordinary share = 15 % (1) Dividend = Amt. 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.Dividend payout ratio is known as a payout ratio.
50 20.95% in 2004-05.25 14.31 14.06 Divideend Payout Ratio 75 70 65 60 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above ratio we can say that Dividend Pay Out Ratio is 69.53 20. 69.78 14.81 14. 41 . From the Total Earning per Share averagely 70% amount is distributed to the Shareholders.YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 DIVIDENED EARNING PER SHARE 14. 72.95 72.S) 69.78% in 2006-07 and 72.26 RATIO (Div.78 72.10% in 2005-06.60 20.06 in 2007-08.53 22.P.82% in 2003-04.82 64.60 20./E. 64.10 69.
59 1.38 3452.74 4591. Total Debt = Debentures + Deposits + Long Term Loans Net Worth = Equity Share Capital + Reserve & Surplus Total Debt Debt-Equity Ratio = ____________ Net Worth YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 TOTAL DEBT 10840.91 3.63 7363.W) 3201.CAPITAL STRUCTURE RATIO In this type of Ratio the comparison made for Capital Structure.36 1.16 9216.16 10363./N.D.41 2.65 3. In this Ratio the proportion is to be found out between different types of long term capital.00 3754.95 NET WORTH RATIO (T. In this type of ratios we can find out following type of ratios Debt Equity Ratio Proprietary Ratio DEBT – EQUITY RATIO Debt-Equity Ratio Compute by dividing Total Debt to Net Worth.71 5874.28 42 .45 4221.
28 times in 2007-08.38 times.45 times in 2005-06. so it shows that Total Long Term Debt is decreasing.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 3.0 times in 2004-05. PROPRIETARY RATIO 43 . because of the higher amount of Long Term Debt but than after it is declining. in AMUL 2003-04. The ideal Debt-Equity Ratio is 2:1. It was 3. 2. It is good sign for AMUL. 2004-05 and 2005-06 the Ratio is more than 2. 1.74 times in 2006-07 and 1.
16 13. OTHER RATIOS 44 .26%.Proprietary Ratio is found out by dividing Proprietary Fund by Total Assets.01 2004-05 3452. In 2004-05 it is 13.82 35864. Proprietary Fund = Equity Share Capital + Reserve and Surplus Proprietary fund Proprietary Ratio = ____________ Total Assets YEAR PROPRIETARY FUND 2003-04 3201.66 15.08 25277. in 2005-06 it is 15.17 25761.) 12.16%.41 2006-07 4221.39 12.51 RATIO (Sales/T.94 24595.66%. 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.59 2007-08 4591.26 16.8%.65 2005-06 3754.39% and in 2007-08 it is 12.36 2008-09 TOTAL ASSETS 26326. in 2006-07 it is 16.A.80 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.
35 RATIO (Debt.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.75 64.48 69.A.38 15063.32 45 .63 7363.95 NET ASSETS 19540.*100) 55.29 137212.48 13572.16 9716./N.25 70.16 11363.19 107187.71 15374. Debt = Loans + Debentures + Fixed Deposit Net Asset = Total Assets – Current Liability Debt Ratio = Total Debt ____________ Net Assets × 100 YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 TOTAL DEBT 10840.09 16289.50 54.
75% in 2004-05. It is comparatively good. It was 69. 54. TOTAL LIABILITY TO ASSET RATIO 46 . 64.25% in 2006-07 and 130.48%.5% in 2005-06.65% in 2007-08. except 2007-08.Debt Ratio 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above ratio we can say that Debt Ratio in 2003-04 is 55.
82 35864.17 25761.08 25277.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. CHALLENGES TO BE MET 47 .00 73.46 TOTAL ASSETS 26326.22 18796.51 RATIO (Sales/T.) 67.00 Total Liability to Total Assets Ratio = × 100 Total Liability to Total Asset Ratio 100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 INTERPRETATION From the above ratio we can say that Total Liability to Total Asset Ratio in 2003-04 is 67%.00 76.43 28947.A.00 76.62 19296. in 2006-07 it is 73% and in 2007-08 it is 81%.94 24595. From the above ratio we interpret that in compare of Total Assets. In 2004-05 and 2005-06 it is 76%.36 18608. The percentage of Total Liability is comparatively less so it indicate good sign for AMUL.00 81.
Rapid progress towards the highest qualify standard strengthens institutions leaders. Expansion upgrading of plant and equipment to met increasing demanded for quality and quantity with the help of better-qualified personnel. Creating a national information network to ensure that accurate timely information is available to all who need it. managers and members. 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. CONCLUSION 48 .
Amul is famous as “Anand pattern” for its cooperative organization in world. So that the milk is stored up to 2-3 days. Then AMUL collect the milk from there after 3 days. According to my point. Amul has competitive established system. But now AMUL have the chilling facilities to some big villages (milk collection centre). The ratio analysis shows the direction of the organization’s growth. who are the members of union all departments are working well and help the union to reach toward top position. The four hands of Amul are working successfully with corporation. and the proper method for paying the debt and collecting the payment. 49 . success factor being Amul are hard work discipline.Amul is a highly successful co-operative sector in world. I have list out some recommendations they are follow. production technology development. So it’s a matter proud for people of Anand as well as India. co-operative structure. By this summer internship report anybody can get the overview of the condition of the financial statement and the organization’s past and present situation. The main cost for AMUL is transportation cost for collecting the milk from different villages. The people of Amul are very cooperative and enthusiastic. Which truly work for farmers. Amul is really “The Taste of India”.
BIBLIOGRAPHY (1) Company’s Annual Reports (last 6 years) (2) www.com (4) Prasanna Chandra.com (3) www.Amuldairy.Google. Financial Management Fourth Edition 50 .
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