Jay khodiyar ma

PRESENTATION
OF
SUMMER TRAINING
REPORT
Prepared By:
Pankaj
Dobariya
Sem – 3 (GIA)
Batch : 2009 -
11
Department of Business
Administration
Bhavnagar University,
Bhavnagar.
 Summer Training Report


on

Ratio Analysis

of

AMUL Dairy

Kaira District Cooperative Milk Producers ’ Union Limited

Anand
 AMUL Dairy
 The Kaira District Co-operative Milk
Producers’ Union Limited was
established on December 14, 1946.

 The National Leaders, Sardar Vallabhbhai
Patel and Morarji Desai advised the
farmers to form a Co-operative.

 The Cooperative was further developed
& managed by Dr. V Kurien along with
Shri H M Dalaya.
Cont.…
 The new plant had the capacity to –
 pasteurize 3,00,000 pounds of milk per day,
 manufacture 10,000 pounds of butter per day,
 12,500 pounds of milk powder per day.
•
 Gujarat emerges as the most successful State
in terms of milk and milk product
production through its cooperative dairy
movement.

 AMUL emerges as one of the most recognized
brands in India, ahead of many
international brands.

 Research objectives
 To assess profitability, liquidity and solvency
position of the company with the help of
various ratios.
  
 To analyse and compare last four years ratios to
find out trend analysis over a time.
  
 To study in real life situation how company can
manage their problem.
  
 To provide access to a broad base of knowledge
in core managerial skill,
  
 To suggest if any, remedy available for the
betterment of the organization.
 Research Methodology
 Research Type:
In my research project I have used the
analytical research for analysis. For which
the past data are used for the evaluation
of the performance of the organization.
 

 Research Instrument:
For the analysis of the ratio I have taken
information from the Annual Reports of
AMUL and verbal talks with the staff
members and co-ordinator.
 Cont.…
 Time of Study:
I have done this analysis during the month of
May-2010 to June-2010.
 

 Data Collection Sources: -

 Secondary Data
 
Secondary data means the data which is

already published and readily available.  

 Annual Reports of the company
 Information provided by organization verbally
 Various books on Financial Management
 Internet – website of AMUL

DATA ANALYSIS
Sales figure
 Liquidity Ratios

Years ► 2005-06 2006-07 2007-08 2008-09

Ratios ▼
Current Ratio 2.13 1.65 2.09 1.63
Liquid ratio 1.05 0.90 0.96 0.54
Cash ratio 0.16 0.31 0.24 0.12
Net Working Capital 0.65 0.57 0.69 0.60
 Leverage Ratios

Years ► 2005-06 2006-07 2007-08 2008-09

Ratios ▼
Debt Equity Ratio 1.64 1.17 2.33 1.73
Net Worth Ratio 2.64 2.17 3.33 2.73
Total Liability Ratio 0.76 0.73 0.81 0.81
Long Term Debt Ratio 0.48 0.37 0.14 0.13
 Activity Ratios

Years ► 2005-06 2006-07 2007-08 2008-09

Ratios ▼
Debtors Turnover Ratio 9.85 12.78 12.09 27.61
Net Assets Turnover Ratio 4.49 5.98 4.88 7.37
Total Assets Turnover Ratio 2.86 3.18 3.00 3.78
Fixed Assets Turnover Ratio 12.69 14.06 15.85 18.48
Current Assets Turnover Ratio 3.68 4.09 3.68 4.73
Working Capital Turnover Ratio 6.95 10.4 7.05 12.25
 Profitability Ratios

Years ► 2005-06 2006-07 2007-08 2008-09

Ratios ▼
Net Profit Ratio 0.46 0.50 0.42 0.42
Earning Per Share 16.19 20.58 22.58 28.78
Dividend Per Share 11.68 14.36 16.28 16.86
 Net profit

Years 2005-06 2006-07 2007-08 2008-09

NP 323.74 411.5 451.51 575.53
 Findings
 AMUL is a largest and successful co-operative
organization in India, which is working for
the benefits of its members (farmers) not
for profit making.

 In the ratio analysis, I found that in the year
2008-09 AMUL having declining trend, if we
see it from the long term solvency point.

 From the profitability point of view, it is
clearly seen that every year Net Profit is
increasing. As per the percentage increase
in Net sales, profit is also increased.


Cont…
I found that from the year 2007-08 AMUL
started to keep stock much more.
Closing stock of the year 2007-08 and
2008-09 is too high.

 In the balance sheet capital employed is
decreased in comparison of last year
because of reduction in borrowings.
  
 AMUL is paying 60 to 70% of its profit to
its shareholders (farmers or
“sabhasad”) as a dividend every year.

 Suggestions
 After analysing the ratio and watching the whole
condition of business I would like to give suggestion
as below:


 The operating expenses are very high such as a raw
material, research and extension, packaging,
processing, power & fuel etc. in these expenses raw
material consumption is more because amul is
expanding its dairy network year to year. So plant
machinery consumption, operation expenses and
other expenses will increase in future, so firm should
more focus to increase its sales. Because selling is
being increased more and more company can achieve
such expenses. So increase in the selling of milk
product is necessary.
 Average collection period of amul is not covered
within credit period, which is granted by firm to
its debtors within month. So firm should try to
collect amount from debtors within month.

 Firm should pay its creditors or society within few
times, because late payment may affect credit
of company.
 


 In the globalise world when cut throat

competition is prevailing in all developed and
developing countries, so to survive in the
market highly qualified persons are more
necessary for firm.

 Limitation of research
Limited time


Financialmatter is very confidential -

Company cannot provide actual data
 


Different accounting policies

 Bibliography
 


 BOOKS:
 


 Chandra Prasanna, Financial Management, theory and

practice, 7th edition Tata McGraw hill publishing co. ltd New
Delhi.
 Pandey I M, financial management, 9th revised edition, Vikas
Publishing House Pvt. Ltd., 2005. New Delhi.
 Kothari, C.R., Research Methodology, Vikas Publishing House
Pvt. Ltd., New Delhi, 1985.
 Annual report of AMUL –( Year 2005-06 to 2008-09)
 
 

 WEBSITES:
 www.amul.com
 www.scribd.com
 www.iimahd.ernet.in
