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Social economy:-
Cooperatives traditionally combine social benefit interests with capitalistic
property-right interests. Cooperatives achieve a mix of social and capital
purposes by democratically governing distribution questions by and
between equal by not controlling members. Democratic oversight of
decisions to equitably distribute assets and other benefits means capital
ownership is arranged in a way for social benefit inside the organization.
External societal benefit is also encouraged by incorporating the operating-
principle of cooperation between co-operatives. In the final year of the 20th
century, cooperatives banded together to establish a number of social
enterprise agencies which have moved to adopt the multi-stakeholder
cooperative model. In the years 19942009 the EU and its member nations
gradually revised national accounting systems to "make visible" the
increasing contribution of social economy organizations.
Meaning
Cooperatives as legal entities
A cooperative is a legal entity owned and democratically controlled by its
members. Members often have a close association with the enterprise as
producers or consumers of its products or services, or as its employees.
There are specific forms of incorporation for cooperatives in some
countries, e.g. Finland and Australia Cooperatives may take the form of
companies limited by shares or by guarantee, partnerships or
unincorporated associations. In the UK they may also use the industrial and
provident society structure. In the US, cooperatives are often organized as
non-capital stock corporations under state-specific cooperative laws.
Coop principles and values
Cooperative principles are the seven guidelines by which coops put their
values into practice, often called the seven Rochdale Principles:
EVOLUTION OF
COOPERATIVES IN INDIA
The cooperative movement in India owes its origin to agriculture and allied sectors.
Towards the end of the 19th century, the problems of rural indebtedness and the
consequent conditions of farmers created an environment for the chit funds and
cooperative societies. The farmers generally found the cooperative movement an
attractive mechanism for pooling their meagre resources for solving common
problems relating to credit, supplies of inputs and marketing of agricultural produce.
The experience gained in the working of cooperatives led to the enactment of
Cooperative Credit Societies Act, 1904. Subsequently, a more comprehensive
legislation called the Cooperative Societies Act was enacted. This Act, inter alia,
provided for the creation of the post of registrar of cooperative societies and
registration of cooperative societies for various purposes and audit. Under the
Montague-Chelmsford Reforms of 1919, cooperation became a provincial subject and
the provinces were authorised to make their own cooperative laws. Under the
Government of India Act, 1935, cooperatives were treated as a provincial subject. The
item "Cooperative Societies" is a State Subject under entry No.32 of the State List of
the Constitution of India.
In order to cover Cooperative Societies with membership from more than one
province, the Government of India enacted the Multi-Unit Cooperative Societies Act,
1942. This Act was an enabling legislative instrument dealing with incorporation and
winding up of cooperative societies having jurisdiction in more than one province.
With the emergence of national federations of cooperative societies in various
functional areas and to obviate the plethora of different laws governing the same types
of societies, a need was felt for a comprehensive Central legislation to consolidate the
laws governing such cooperative societies. Therefore, the Multi-State Cooperative
Societies Act, 1984 was enacted by Parliament under Entry No. 44 of the Union List
of the Constitution of India.
EVOLUTION
In 1958 the National Development Council (NDC) had recommended a national
policy on cooperatives. Jawaharlal Nehru had a strong faith in the cooperative
movement. While opening an international seminar on cooperative leadership in
South-East Asia he had said " But my outlook at present is not the outlook of
spreading the cooperative movement gradually, progressively, as it has done. My
outlook is to convulse India with the Cooperative Movement or rather with
cooperation to make it, broadly speaking, the basic activity of India, in every village
as well as elsewhere; and finally, indeed, to make the cooperative approach the
common thinking of India....Therefore, the whole future of India really depends on the
success of this approach of ours to these vast numbers, hundreds of millions of
people".
The cooperative sector has been playing a distinct and significant role in the
countrys process of socio-economic development. There has been a substantial
growth of this sector in diverse areas of the economy during the past few decades. The
number of all types of cooperatives increased from 1.81 lakh in 1950-51 to 4.53 lakh
in 1996-97. The total membership of cooperative societies increased from 1.55 crore
to 20.45 crore during the same period.
History
Amul-cooperative registered on 14 December 1946 as a response to the
exploitation of marginal milk producers by traders or agents of the only
existing dairy, the Polson dairy, in the small city distances to deliver milk,
which often went sour in summer, to Polson. The prices of milk were
arbitrarily determined. Government had given monopoly rights to Polson to
collect milk from Kaira and supply it to Bombay city.[6][7]
Angered by the unfair trade practices, the farmers of Kaira
approached Sardar Vallabhbhai Patel under the leadership of local farmer
leader Tribhuvandas K. Patel. He advised them to form a cooperative and
supply milk directly to the Bombay Milk Scheme instead of Polson (who did
the same but gave them low prices).[8] He sent Morarji Desai to organise
the farmers. In 1946, the milk farmers of the area went on a strike which led
to the setting up of the cooperative to collect and process milk.[7] Milk
collection was decentralized, as most producers were marginal farmers
who could deliver, at most, 12 litres of milk per day. Cooperatives were
formed for each village, too.[9]
The cooperative was further developed and managed by Dr.Verghese
Kurien with H.M. Dalaya. Dalaya's innovation of making skim milk powder
from buffalo milk (for the first time in the world) and a little later, with
Kurien's help, making it on a commercial scale,[10] led to the first modern
dairy of the cooperative at Anand, which would compete against
established players in the market. Kurien's brother-in-law K.M. Philip
sensitized Kurien to the needs of attending to the finer points of marketing,
including the creation and popularization of a brand. This led to the search
for an attractive brand name. In a brainstorming session, a chemist who
worked in the dairy laboratory suggested Amul, which came from the
Sanskrit word "amulya", which means "priceless" and "denoted and
symbolised the pride of swadeshi production."[11]
Products[edit]
A can of AMUL cow ghee
Amul's product range includes milk powders, milk, butter, ghee,
cheese, dahi, yoghurt, buttermilk, chocolate, ice cream, cream,
biscuit, shrikhand, paneer, gulab jamuns, flavoured milk, basundi and
others.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy
Federation Marketing Award for 2007.[15] in
In popular culture[edit]
The establishment of Amul is known as White Revolution.
The White Revolution inspired the notable Indian film-maker Shyam
Benegal to base his film Manthan (1976) on it. The film was financed by
over five lakh (half a million) rural farmers in Gujarat who contributed Rs 2 each to its
budget. Upon its release, these farmers went in truckloads to watch 'their' film, making it a
commercial success.[22][23]Manthan was chosen for the 1977 National Film Award for Best Feature
Film in Hindi.
Sales Turnover Rs (million) US$ (in million)
The objective of financial statement is to know information about the financial position, performance & cash flows of an
enterprise with the help of analytical tools.
To know the Market Position AMUL by taking Market Value Ratios
To know the tradeoff between Liquidity & Profitability.
DEVELOPMENT OF HYPOTHESIS:
H0: There is no positive relationship between the Liquidity & Profitability of AMUL.
H1: There is positive relationship between the Liquidity & Profitability of AMUL.
TESTING OF HYPOTHESIS:
STEP 1:
Years CR OPR
r -0.415
Years CR NPR
STEP 3: INTERPRETATION
1) Correlation Result between the Operating Profit & Current Ratio shows a Moderate Negative Correlation
between them, & that if the current ratio increases it will have a negative impact on profitability & it will decreases
because there is a correlation r=-0.41472. Here AMULs current ratio is more than standard of 2:1, this indicate
negative reflection towards current assets
2) Correlation Result between the Net Profit & Current Ratio shows a Moderate Negative Correlation between
them, & that if the current ratio increases it will have a negative impact on profitability & it will decreases because
there is a correlation r=-0.32255. This indicates that if CR is increased by 1 Rs on liquidity basis, it reduces NPR by
0.32255 paisa on profitability.
3) Correlation result between Liquidity & Profitability have Moderate Negative Correlation