❶ AMUL formed in 1946, is a dairy co-operative movement in India

❷ AMUL'S Head-quarter in the small town of Anand, Gujarat

❸ Specializing in dairy products, AMUL now takes pride in having built
the largest food product business in the Country
❹AMUL is the sterling example of co-operative achievement in the
developing world
❺Presently, it is the most popular food brand of India
❶ To evaluate the financial position of Amul

❷ To check the return on equity and return on capital employed of Amul

❸ To study the liquidity position of the company through ratio analysis

❹ To check the profitability and future prospect of Amul

❺ To study the performance level of Amul in the current operation

❻To know the rank of AMUL in National and International scenario

❶The research is of four years only

❷ No comparison with competitors

❸ The entire study based on secondary data

❹ No availability of data for the separate products of Amul

 Year 2016-17 2015-16 2015-14 2014-13
Analysis:-
From the beside graph we
can see that the Current Current 91640.13 687795.12 72470.09 50220.8
Ratio of Amul for the year Assets
2013-14 to 2016-17 is Current 131622.37 107613.02 96655.9 69747.24
lower than standard ratio
i.e. 2:1. It’s happened Liabilities
because of increase in Current 0.70 0.65 0.75 0.72
current liability more than
current assets. It is also Ratio
indicates that Current
Ratio has improved to CURRENT RATIO
0.70 from last year 0.65
due to increased in
Inventories. So, the 0.8
0.75
0.75
Current Ratio of Amul is 0.7
0.7
0.72
not satisfactory 0.65
0.65
CURRENT RATIO
throughout the year. 0.6
2016-17
2015-16
CURRENT RATIO
2014-15
2013-14
Analysis :- It is Year 2016-17 2015-16 2015-14 2014-13
observed that Liquid 34378.43 26300.5 28069.54 22526.51
Liquid Ratio of Asset
AMUL is Liquid 131622.37 107613.02 96655.9 69747.24
decreased to 0.24
from 0.32 for the Liabilities
year 2013-14 to Liquid 0.26 0.24 0.29 0.32
2015-16. After that Ratio
it has improved to
0.26 due to
increased in
Credit Sales. Since QUICK RATIO
the Standard of
Liquid Ratio is 1:1,
it can be say that 0.4
the Liquid Ratio 0.26
0.24 0.29 0.32
of the selected 0.2
Company is not QUICK RATIO
satisfactory. 0
2016-17 2015-16 QUICK RATIO
2014-15 2013-14
Analysis :- It Year 2016-17 2015-16 2015-14 2014-13
is shows that Long –
Long Term Debt term
and Equity debit 27854.16 27023.74 19563.24 13252.24
Shareholders’ Eq.shareh
Fund both are older fund
increasing 16551.47 12842.78 10076.25 8899.35
gradually Debt-
throughout the Equity
year. It is also ratio 1.68 2.10 1.94 1.49
observed that
Debt Equity
Ratio of the DEBT-EQUITY RATIO
company has
decreased to 1.68
in the year 2016- 3
2.1
17 due to issue of 2
1.68 1.94
1.49
new Equity 1
Shares. 0
DEBT-EQUITY RATIO

DEBT-EQUITY RATIO
Net Profit Ratio
Analysis :- Beside Year 2016-17 2015-16 2015-14 2014-13
table shows that PAT /
Net profit of the Net Profit 2177.77 1545.12 1172.56 847.43
Company has Turnover/
increasing
Sales 570031.55 482498.12 414196.14 344125.45
throughout the
year due to
Net Profit
increasing in Total
Sales. It implies ratio 0.0038 0.0032 0.0028 0.0025
that the company NET PROFIT RATIO
going to a good
position by 0.0038
0.004
utilizing its 0.003
0.0032
0.0028
0.0025
recourses 0.002 NET PROFIT RATIO
0.001
effectively. 0
NET PROFIT RATIO
Analysis :- It Year 2016-17 2015-16 2015-14 2014-13
is observed that
Operating Profit of
the company was EBIT 3095.80 2174.41 1605.89 1250.16
very low. But after Turnover/
that it has increasing Sales 570031.55 482498.12 414196.14 344125.45
with the increase in Operating
Total Sales. It Profit 0.0054 0.0045 0.0039 0.0036
implies that a ratio
positive effort and
OPERATING PROFIT RATIO
operational
efficiency of the 0.006
0.0054

management. 0.004
0.0045
0.0039
OPERATING PROFIT RATIO

0.002 0.0036

OPERATING PROFIT RATIO

Analysis :- Year 2016-17 2015-16 2015-14 2014-13
Debtors Turn over
Ratio of the Debtors 24529.05 19777.99 19748.24 14595.00
company has Turnover/
increasing as well Sales 570031.55 482498.12 414196.14 344125.45
as decreasing
Debtors
throughout the
year. It is Turnover
happened due to Ratio 0.0430 0.0410 0.0477 0.0424
increased in
DEBTORS TURNOVER RATIO
Credit Sales and
Trade Receivable 0.043
0.0477 0.05
simultaneously. It 0.041
0.0424 0.045
DEBTORS TURNOVER
RATIO
is the normally 0.04

good sign of the 0.035

company. DEBTORS TURNOVER RATIO

Analysis :- Year 2016-17 2015-16 2015-14 2014-13
Initially Credit
Turnover Ratio Creditors 91640.13 69785.12 72470.09 50220.80
of the company
was 0.18 then it Purchase 505202.96 420198.46 374892.86 278235.92
has increased to Creditors
0.19 in the year Turnover
2014-15. After Ratio 0.1814 0.1661 0.1933 0.1805
that it came to CREDITORS TURNOVER RATIO
0.16, and then
it increased 0.1805 0.1814
again to 0.18. 2016-17
2015-16
2014-15
0.1933 0.1661
2013-14
Analysis :- It is Year 2016-17 2015-16 2015-14 2014-13
shows that Assets Turnover
Turnover Ratio of the
company has / Sales 570031.55 482498.12 414196.14 344125.45
decreasing throughout Total
the year from 3.74 to Assets 176028 147479.54 126295.39 91898.83
3.24 from the year
2013-14 to 2016-17. Assets
So, the efficiency of Turnover
the management of Ratio 3.2383 3.2716 3.2796 3.7446
AMUL is below
standard since, this ASSETS TURNOVER RATIO
Ratio measures the
efficiency of the
management with 3.2383 3.2716 3.2796
3.7446 4

which a firm utilized 3.5 ASSETS TURNOVER

its Assets. 3 RATIO
2.5
2016-17 ASSETS TURNOVER RATIO
2015-16
2014-15
2013-14
Analysis :- Year 2016-17 2015-16 2015-14 2014-13
Profit before Tax
Turnover Ratio or PBT 3095.80 2174.41 1605.89 1250.16
PBT Turnover Turnover/
Ratio has Sales 570031.55 482498.12 414196.14 344125.45
gradually PBT
increasing from Turnover
0.36% to 0.54% for Ratio 0.0054 0.0045 0.0039 0.0036
the year 2013-14
to 2016-17. It is
PBT TURNOVER RATIO
happened due to
increasing in PBT
is more than the 0.0054
2016-17
increasing in
Turnover. 0.0036 0.0045 2015-16
0.0039 2014-15
2013-14
Analysis :- It is Year 2016-17 2015-16 2015-14 2014-13
simply observed
that EPS of Amul EASH 2177.77 1545.12 1172.56 847.43
has been No of Eq
increased from Share 6012983 4111375 2978533 2896962
29.25 to 39.36 in
the year 2014-15
due to increase in EPS 36.2177 37.5815 39.3670 29.2523
Profit available
for Equity Share Earning Per Share (Rs)
Holder. After that
it is decreased to
36.21 in the year 29.25 36.21 2016-17
2016-17 due to 2015-16
issue of new 2014-15
Equity Share. 39.36
37.58 2013-14
 Amul is emerging one of the largest dairy
Sales Turnover
company in India.
 The current Assets of Amul during 2013-14
were Rs. 50220 lakhs and reached to a
maximum of Rs. 91640 lakhs. It denotes that 572214.46
the dairy has been invested big amounts in the 600000
484368.47
form of Current Assets during the study period. 500000
415841.39
 The current ratio of Amul were 0.72 in the year 400000
345348.33
2013-14 which was not satisfactory but after 300000
that it falls to 0.70 due to a huge increase in 200000
amount of Trade Payable . It seems that Sales Turnover
100000
current ratio of Amul is below standard.
0
 The Quick Ratio of Amul has also been dropped Sales Turnover
down throughout the year. It seems that firm
has made more transaction of credit Purchase
than transaction of credit sale.
 Debt Equity Ratio of Amul is high during the
study period. The range of Debt Equity Ratio is
1.49 to 2.10 which implies that the firm
enjoying the benefit of Trading on Equity.
 Ran Company Origin & Main Milk Estimated Market Share in % of world milk
k Name Operation intake in Turnover production
 Net Profit Ratio of AMUL increase throughout 2017 Countries mill in per kg Milk
the year and turnover of AMUL is grow up per USD
1
year on a average rate of 18.35%; it’s indicates a Dairy Farmers 28.1
of America USA 0.5 3.60%
good position of AMUL. 2 Fonterra New Zealand 22.1 0.6 2.80%
3
 Operating Profit Ratio of AMUL is very low Groupe Lactalis France/ Others 15.1 1.3 1.90%
4
but last few years it has increasing with the Aria Foods
Denmark/
Sweden/ UK
14.2
0.8 1.80%
increase of total Turnover. It shows the positive 5 Nestle Switzerland 14.0* 1.9* 1.80%
effort of the Company. 6
Friesland Netherlands/ 12.6*
Camoina Others 1.0* 1.60%
 Debtors Turnover Ratio of the Company 7 Dean Foods USA 10.3 0.8 1.30%
increasing throughout the year. It is normally 8
DMK (ind DOC German/ 7.8
good sign of the Company. Kaas) Netherlands 0.9 1.00%
9 Saputo Canada/ USA 7.7 1.1 1.00%
 AMUL’S Assets Turnover Ratio is not good 10
California 7.7
position; it is decrease last few years. Dairies USA 0.5 1.00%
11 Danone France/ Others 7.5 2.4 1.00%
 PBT Turnover Ratio of AMUL is increase last 12 Yill Group China 6.8* 1.4* 0.90%
*13
four years; its shows a good sign of the Company Amul (GCMMF) India 6.5 0.8 0.80%
14 Muller German/ UK 6.3 1.2 0.80%
 AMUL is achieving the Rank 1st in
all over the 15 Glanbia Group Ireland 6.1 0.7 0.80%

India of Milk PRODUCTION & EXPORTS. 16 Agropur Canada/ USA 5.8 1.0 0.70%
17 Land O' Lakes USA 5.8* 0.7* 0.70%
 AMUL is also achieving the Rank 13st in all 18 Mengniu China 5.8 1.4 0.70%

over the world of PRODUCTION. 19 Groupe Sodiaal France 5.2 1.1 0.70%
20 Schreiber foods USA 4.5* 1.1* 0.60%

Sum Of Top 2o 200 1.0 25.40%

 It is recommended to the management to be more skillful
to use the available resources effectively, so that the
business will survive with the competitors in the long run.
 It is also recommended to finance more capital to expand
their business, as we see that there is a huge scope for
expansion.
 It is also suggested to ensure the availability of Amul
product in the rural area of India.
 It is advisable to the management of Amul to expand their
export business so that they would grow up in the
International Ranking.