AMUL COMPANY LTD.

Company Analysis Report submitted in partial fulfillment of the

requirements for the award of the Degree
BACHELOR OF
COMMERCE
DAVANGERE UNIVERSITY

Submitted by
SRINIVAS R
U13GH21C0094

Under the Guidance

Dr. Chethan
Assistant Professor
Department of Commerce Government First College
Holalkere

Devanagere university
2023-2024
 APPENDIX V
DECLETRATION ( BY THE STUDENT )

1. Name Of The Student :

2. Name Of The Guide

:
3. Name Of The Company :

4. Write a brief note on your company:

JSW Steel is the largest private sector steel manufacturer in terms of installed
capacity. The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon
after, it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in
Maharashtra. JSW Steel's history can be traced back to 1982, when the Jindal
Group acquired Piramal Steel Limited, which operated a mini steel
mill at Tarapur in Maharashtra and renamed it as Jindal Iron and Steel Company
(JISCO). Soon after the acquisition the group set up its first steel plant in 1982
at Vasind, near Mumbai.

Place : Name: Varun S

Date: Register number:

U13GH21C0060
 Appendix VI

CERTIFICATE ORIGINALITY
(To be given by the guide and department)

Date:

This is to certify that the company analysis Report title AMUL COMPANY
Ltd. is an original work of Mr./MS bearing University Register Number
U13GH21C0111 and is being submitted in partial fulfillment for the award of the
Bachelor Degree in Commerce by Davangere University, the report has not been
submitted earlier either to this University/ Institution for the fulfillment of the
requirements of the course of study.

SIGNATURE OF THE GUIDE: SIGNATURE OF THE HOD:

DATE: DATE:
 Appendix VII

Table of the contents

Report structure

CONTENTS
Chapter INDEX PAGE NO
NO
1 Introduction
2 Financial analysis
3 Management an leadership
4 SWOT Analysis
5 Summary of Findings,
Suggestion and conclusion
6 Learning Experience
7 Bibiliography Apendix
8 Annexure
 APENDIX VIII

List of Table

SI NO Page
Table Name No
Comparative Balance sheet
Comparative Income Statement
Common size Balance sheet
Common size Income Statement
Trends of Balance sheet
Trends of Income Statement
Liquidity ratio
Acid Test Ratio
Bank Finance To Working Capital Gap Ratio
Credit Turnover ratio
Current Asset Turnover Ratio
Total Asset Turnover Ratio
 APPENDIX IX

List of Figures

FIGURE FIGURE NAME PAGE

NO NO

Liquidity ratio

Acid Test Ratio

Bank Finance To Working Capital Gap Ratio

Credit Turnover ratio

Current Asset Turnover Ratio

Total Asset Turnover Ratio

 APENDIX

Registration Form

01. NAME OF THE STUDENT : SRINIVAS R

02. NAME OF THE GUIDE : Dr CHETAN

03. NAME OF THE COMPNAY :AMUL

04. WRITE A BRIEF NOTE ON YOUR COMPANY:

Amul company was deciding to offer a customer of consumer buying behaviour is

the sum of a consumer attitudes performance intentions and decisions regarding the
co nsumer behaviour in the market place when purchasing a product or services.
The study of consumer behaviour draws upon social science disciplines of
anthropology psychology sociology and economics in the company .
Amul is derived from the sanskriyt word “AMULYA” which means the valuable of
priceless this was examines the dairy product of the amul company has reached the
level of excellence it all began started from 75 years ago by improvised by the
formers in the rural dairy of the organisation.

Student signature : Guide signature:

Date of Progress Signature
Meeting Topic Discussed as on o the
date faculty

30-09- Registration Form Good

2023
06-09-2023 Preparation of Research Proposal Good
13-09-2023 Preparation of Research Proposal Good

20-09-2023 Chapter - 1 Introduction Good

27-10-2023 Chapter - 1 Introduction Good
04-10-2023 Chapter - 2 Financial performance Analysis Good
11-10-2023 Chapter - 2 Financial performance Analysis Good
18-11-2023 Chapter - 2 Financial performance Analysis Good
01-11-2023 Chapter - 2 Financial performance Analysis Good
08-11-2023 Chapter - 3 Management And Leadership Good
15-11-2023 Chapter - 3 Management And Leadership Good
22-11-2023 Chapter - 4 SWOT Analysis Good
29-11-2023 Chapter - 5 Findings, Suggestion, And Good
Conclusions

06-12-2023 Chapter - 5 Findings, Suggestion, And Good

Conclusions

13-12-2023 Learning And Experience Good

20-12-2023 Bibliography Good
27-12-2023 Annexure Good
APPENDIX – III
WORK DIARY

Appendix II
 Topic: A Study On Financial PERFORMANCE OF Amul Company.
Introduction :

Company information Amulcompany was deciding to offer a customer of consumer buying

behaviour is the sum of a consumer attitudes performance intentions and decisions
regarding the co nsumer behaviour in the market place when purchasing a product or
services. The study of consumer behaviour draws upon social science disciplines of
anthropology psychology sociology and economics in the company Amul is derived from
the sanskriyt word “AMULYA” which means the valuable of priceless this was examines
the dairy product of the amul company has reached the level of excellence it all began
started from 75 years ago by improvised by the formers in the rural dairy of the
organisation. Amul was founded on 19 december 1946 at the 76 years ago the founder of
the amul company is tribhuvanadaspatel. The headquaters was in anand Gujarat india the
area was survived around the world the company managing directors is jayenmehta. The
revenue of the amul company was ₹52000 crore. In the billion (uss6.5billion) (2022) there
was a no.ofmillion of employers around 3.6 million employers are their.

01.Objective Of A Company Analysis :

To study concepts from works of amul company * The analysis the framework of
amul company *Company financial market analysis of the amul company

03.Scope of the study:

In this study focused on financial formate of amul company annual report of 2022-23
of the amul company

04. Methodology: .

*Primary data
*Secondary data

05. DATA COLLECTION:

1. Primary data as amul and mother dairy obtain milk from cows which is naturally made
and either manufacture it ( primary) or make different products from it like ghee, butter,
chocolate,etc. (secondary), it is both primary and tertiary
2. Secondary data The secondary data cabe be defined as data collected by son/me one else
for purpose other than solving problem being investigation and previously meant for
another purpose A Secondary data is collected from the books periodical journals
magazines papers company records internet and other publications

06. CHAPTER SCHEME

SL.NO: CHAPTER-NAME CHAPTER-

NUMBER
01 Introduction 01
02 Financial and market analysis 02
03 Management and leadership 03
04 SWOT analysis 04
05 Summary of finding,suggession and 05
conclusion
 CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION
Amul company was deciding to offer a customer of consumer buying
behaviour is the sum of a consumer attitudes performance intentions and decisions
regarding the consumer behaviour in the market place when purchasing a product or
services. The study of consumer behaviour draws upon social science disciplines of
anthropology psychology sociology and economics in the company Amul is derived
from the sanskriyt word “AMULYA” which means the valuable of priceless this
was examines the dairy product of the amul company has reached the level of
excellence it all began started from 75 years ago by improvised by the formers in
the rural dairy of the organisation. Amul was founded on 19 december 1946 at the
76 years ago the founder of the amul company is trib huvana daspatel. The
headquaters was in anand Gujarat india the area was survived around the world the
company managing directors is jayenmehta. The revenue of the amul company was
₹52000 crore. In the billion (uss6.5billion) (2022) there was a no.ofmillion of
employers around 3.6 million employers are their.
1.2 overview of the company :
Amul company was a recognized the so many things the number of producer
members is 3.64 million and the 18600 village society are their. The total milk
handling capacity per day is 41 million liters per day and sales turnover in 2021-22
is₹46.481 crore (uss 6.2 billion) in the year.
1.3. Inception of the company:
The small dairy farmers by traders and agents at the time milk prices were
arbitrarily determined giving poison and effective monopoly in milk collection from
kaira and its subsequent supply to Mumbai
1.4. Nature of the business carried:
The formers formed the co operative and resolved not to provide poison with
any more milk connection was decentralized as most producers were marginal
formers who could deliver at most 1.2 liters of milk per day co operative were
formed for each village by june 1948 the KDCMPUL has started pasticuring milk
for the bombay milk scheme the national dairy development board (NDDB) to
replicate the kairaco operative in other parts of india under the leadership of
tribhuvan das patel in 1973 amul celebrated its 25th anniversary with morarji desai.
Manibenpatel and verghes ekurien.

1.5 Mission of the company:

We the motivated and deducted work force at are commited to produce
whole some and safe foods of excellence quality to remain market leader through
development of quality management system state of art technology innovation and
eco-friendly operations to achived elightment f customer and milk procedure.
1.6 Vision of the company:
Amul vision is to provide more satisfaction to the farmers their customers
employees and distributers.
1.7 Goals and objectives and quality of the company:
* To study the concepts from works of amul company.
* To analyse the framework of amul company.
* Company financial market analysis of the amul company.
1.8 Achievements and awards of the company :
* National productivity council productivity awards in
*1985-86
*1986-87
*1987-88
*Indian merchants chamber bombay award in 1988
*National productivity council productivity awards in
*1991-92
*1992-93
*1993-94
*1994-95
*Industrial good house keeping contest gujarath state 1984
*Baroda productivity council 1997-98
*Indian co-operative centenary celebration Shakarvikasratna award in 2004.
1.9 Compitators of the company:
dodlg dairy and milk mantra amul(GCMMF) has 273 active competators here
is a list of the top 10 competators of amul (GCMMF) ranked by tracxn score.
*Akshayakalpa – tiptur based 2010 founded series B company
*Milky mist – Erode based 1985 founded hate stage company
* dodla dairy – Hydrabad based 1995 founded public company 1.10 .
tribhuvan das patel in 1973 amul celebrated its 25th anniversary with morarji desai.
Manibenpatel and verghes ekurien.

1.5 Mission of the company:

We the motivated and deducted work force at are commited to produce
whole some and safe foods of excellence quality to remain market leader through
development of quality management system state of art technology innovation and
eco-friendly operations to achived elightment f customer and milk procedure.
1.6 Vision of the company:
Amul vision is to provide more satisfaction to the farmers their customers
employees and distributers.
1.7 Goals and objectives and quality of the company:
* To study the concepts from works of amul company.
* To analyse the framework of amul company.
* Company financial market analysis of the amul company.
1.8 Achievements and awards of the company :
* National productivity council productivity awards in
*1985-86
*1986-87
*1987-88
*Indian merchants chamber bombay award in 1988
*National productivity council productivity awards in
*1991-92
*1992-93
*1993-94
*1994-95
*Industrial good house keeping contest gujarath state 1984
*Baroda productivity council 1997-98
*Indian co-operative centenary celebration Shakarvikasratna award in 2004.

1.9 Compitators of the company:

dodlg dairy and milk mantra amul(GCMMF) has 273 active competators here
is a list of the top 10 competators of amul (GCMMF) ranked by tracxn score.
 CHAPTER: 02
FINANCIAL AND PERFORMANCE ANALYSIS

Table No: 2.1

COMPARATIVE BALANCE SHEET OF AMUL COMPANY

FOR THE YEAR 2021 AND 2022

particulars 2021 2022 increase Decrease

Current assets
inventories 25992 30650 4728 47.2%
Sundry debtors 3303 5380 2077 33.03%
Cash & cash balance 9690 12141 2451 96.9%
Loans &advances 4279 5164 885 42.79%
Total Assets 43264 53335 10142 431.9%
Current liabilities

liabilities 26220 33187 6969 262.2

provisional 261 279 18 2.16
26481 33466 6985 26.4
Share capital 2401 3401 1000 24.01
Reserve & surplus 3064 3447 383 30.64
Deffered tax liability 187 209 72 1.87
Net worth 5278 6588 1314 5274
Secured loans 18757 19804 1047 187.57
Unsecured loans 501 552 51 5.01
Total loans 19259 20356 1097 192.59
TOTAL 24537 26944 2407 245.37
Fixed asets
Gross block 17881 6212 11669 178.81
Depreciation 10856
Net block 7025 6212 813 70.25
Capital w/p 17881 6216 11669 178.85
Gross block brand value 731 687 44 7.31
Other investment 731 687 44 7.31
TOTAL
Source: Secondary data annual report AmulL company

Comparative Balance Sheet Interpretation:.

The fixed assets have increased by in 53335 in 2022. and a fall in

current liabilities was in the year 2021 is 19259 and in the year 2022 is 20356
. comparing a both the year of balance Sheet was increased. In liquidity The
overall performance as far as fixed assets are concerned is good as it has
resulted in the increase in additional production capacity.

Table No: 2.2

COMPARATIVE OF INCOME STATEMENT OF AMUL COMPANY FOR

THE YEAR 2021 AND 2022

Particulers 2021 2022 Increase/ Decrease

decrease %
Gross sales 393222 466265 73043 18.57%

L: exice duty _ _ _ _

Net sales 393222 466265 73043 18.5%

EXPENDATURE

Cost of goods sold 375664 445303 69639 18.53%

Staff cost 2039 2482 443 21.72%

Manufacturing express 2299 3014 715 31.12%

Marketing and selling expands 9862 11878 2016 20.44%
Other expenses 1267 1543 276 21.78%

ABITDA 2019 2045 46 2.19%

Depreciation 1377 1319 58 4.21%

EBIT 714 727 -10 1.40%

Intrest expenses & bank expenses 169 108 61 36.0%

Other income 330 363 -33 10%
Profit before tax 875 982 107 12.2%

Income taxes 266 239 27 10.1%

Profit after tax 609 743 -134 22.0%

TOTAL 1183934 1403273 217645 216.24%

Source: Secondary data annual report Amul company

Comparative Income Statement:

Total sales of the company was 393222 in the year 2021.

And in the year 2022 is 466265. Campering the above two years
total sales was in increased. The total sales of the company was
going good. The total expenditure of the company is in the year
2021 is 1183934. And in the year 2022 is 1403273. In above the
total expenditure of the company was increased in the year
2022. The total income statement of the company good.

Table No: 2.3

COMMON SIZE BALANCE SHEET OF AMUL COMPANY
FOR THE YEAR 2021 ND 2022

Particulars Amount % Amount %

Share capital 2401 9.78% 3401 12.6%

Researve& surplus 3064 12.48% 3447 12.7%

Differed liability 187 0.76% 259 0.96%

Net worth 5278 21.51% 6588 24.4%

Secured lons 18757 76.4% 19804 73.5%

Unsecured loans 501 2.4% 552 2.04%

Total loans 19259 78.4% 20356 75.54%

Total assets 24537 100% 26944 100%

APPLICATION OF FUNDS
Fixed assets 17881 100% 6216 100%

Gross block 10856 44.2% 6216 23.0%

Net block 7025 28.6% 6216 23.0%

Capital WIP 69 0.27% 176 0.65%

Gross block brand value 17881 72.8% 6216 23.00%

Other investment 731 2.97% 687 2.54%

Current assets 43193 176.0% 53335 19.7%

inventories 25992 10.5% 30050 11.1%

Sundry debtors 3303 13.4% 5380 19.9%

Cash & bank balance 9690 39.0% 12141 45.06%

Loans & advances 4279 17.4% 5164 19.1%

Current liabilities 26481 10.7% 33466 12.46%

liabilities 26220 10.6% 33187 12.31%

provisions 261 1.06% 279 1.03%

Net current asset 16712 68.1% 19869 73.44%

TOTAL 24537 100% 26944 100%

Source: Secondary data annual report Amul company

Common Size Balance Sheet

Interpretation:

In Amul company’s total number of assets is In the year 2021 is 24537.

And in the year 2022 is 26844 comparing the both year total assets of the
company is increased in upcoming year. this clearly indicates that working
capital position has improved considerably. all these verifications depicts a strong
capital base and the shareholders can enjoy and wealth maximization as the
image of the enterprise.

Table No: 2.4

COMMON SIZE INCOME STATEMENT OF AMUL
COMPANY FOR THE YEAR 2021 ND 2022

Particulers 2021 2022 Increase/ Decrease

decrease %
Gross sales 393222 466265 73043 18.57%

L: exice duty _ _ _ _

Net sales 393222 466265 73043 18.5%

EXPENDATURE

Cost of goods sold 375664 445303 69639 18.53%

Staff cost 2039 2482 443 21.72%

Manufacturing express 2299 3014 715 31.12%

Marketing and selling expands 9862 11878 2016 20.44%
Other expenses 1267 1543 276 21.78%

ABITDA 2019 2045 46 2.19%

Depreciation 1377 1319 58 4.21%

EBIT 714 727 -10 1.40%

Intrest expenses & bank expenses 169 108 61 36.0%

Other income 330 363 -33 10%

Profit before tax 875 982 107 12.2%

Income taxes 266 239 27 10.1%

Profit after tax 609 743 -134 22.0%

TOTAL 1183934 1403273 217645 216.24%

Source: Secondary data annual report Amul company

Common size Income Statement interpretation :

Total sales of the company was 393222 in the year

2021. And in the year 2022 is 466265. Campering the above
two years total sales was in increased. The total sales of the
company was going good. The total expenditure of the
company is in the year 2021 is 1183934. And in the year
2022 is 1403273. In above the total expenditure of the
company was increased in the year 2022. The total income
statement of the company good.

Table No: 2.5

TRENDS BALANCE SHEET OF AMUL COMPANY FOR THE
YEAR 2021 ND 2022.

particulers 2019 2020 2021 2022 2019 2020 2021 2022

Current 39592 29328 43193 53335 100 74.09% 147.2% 123.48%

assets
inventories 16208 14143 25922 30650 100 87.25% 183.21% 118.2%
 Sundry 5427 4235 3303 5380 100 78.36% 77.66% 162.88%
debtors
Cash and 8840 7661 9600 12141 100 86.66% 125.31% 126.46%
bank
balance
Loans & 9107 3270 4279 5164 100 35.90% 130.8% 120.6%
advances
liabilities 30428 27468 26481 33466 100 90.27% 96.40% 126.3%

provisions 30143 27097 26220 33197 100 89.8% 96.76% 0.012%

Share 2401 2401 2401 3401 100 _ _ 141.6%

capital
Researve & 2638 2840 3064 3447 100 107.65 107.8% 112.5%
surplus %
Differed tax 142 142 187 259 100 _ 131.69% 138.50%
liability
Net worth 4897 5098 5278 6588 100 104.1% 103.53% 124.8%

Secured 12236 4031 18757 19804 100 32.94% 465.3% 105.58%

loans
Unsecured 451 499 501 552 100 110.6% 100.4% 110.1%
loans
Total loans 12686 4530 19259 20356 100 37.48% 425.1% 105.6%

Total 17583 9628 24537 26944 100 54.75% 254.8% 109.8%

Gross block 16031 16077 17881 6212 100 100.2% 111.2% 34.74%

Depreciatio 8582 9560 10856 - 100 11.3% 113.5% -

n
Net block 7450 6517 7025 6212 100 87.47%

Source: Secondary Data Annual Report of Amul Company

Trends of Balance Sheet Interpretation:

1.1 In the year of 2019 is 12686. I the year 2020 is 4530. Compared to both
year it was company was low in this two years. And the next two year 2021-2022 is
in the year 2021 is 19259 and in the year 2022 is 20356. Above the years compared
in the financial year 2021-2022 was increased.

1.2 The liquidity position looks to be good. There is a fall in cash and holding and
the inventory has increased by 2022compared to 2019.
Table No: 2.5
TRENDS INCOME STATEMENT OF AMUL COMPANY FOR
THE YEAR 2021 ND 2022.
Particulars 2014 2015 2016 2017 2014% 2015 2016% 2017%
%
Income
Revenue from 345348 415841 484368 572214 100 120.4 1164 118.1
operator
Less: exice 1222 1645 1870 2182 100 134.6 113.67 116.6
duty
Net revenue 344125 414196 482498 571570 100 120.3 116 118.1
from operation
Other income 431 486 902 1538 100 112.7 185.5 170.5
Total income 344557 414682 483400 571570 100 120.3 116 118.2
Expenses
Cost of 278235 374892 420198 503303 100 134.7 112.0 120.2
materials
Manufacturing 27158 26423 26430 29250 100 97.2 .100.0 110.6
expanses
Goods and 15601 13707 4195 5500 100 91.0 30.6 131.1
work in
progress
Employee 6792 7927 8458 12479 100 116.7 103.6 147.5
benefit
expanses
Finance cost 4259 3837 5190 5845 100 90.0 135.2 112.6
Depreciation 3696 4197 6004 8157 100 113.5 135.2 112.6
and
amortization
expanses
Advertisement 1348 2093 2061 3004 100 155.2 98.2 145.7
fright outward
and marketing
expanses
Administrative 6214 7411 8686 9933 100 119 117.2 114.3
cooperative
development
Total 343307 413076 481226 568474 100 120.3 116.4 118.1
expanses
Source: Secondary Data Annual Report of Amul Company

Trend Income Statement

Interpretation:

 The sales have continuously increased in all the years up to 2017 except
118.2%

 Profit before tax has substantially increased. In two years’ period it

has more than doubled. The comparative increase in profits is much
higher in 2014 as compared to 2017.
 The expansion of the firm is good and it has doubled its sales and profits in
just two years’ time. The profits have increased more than sales which
shows there is a proper control over cost of goods sold the overall
performance of the concern is good.

COMPUTATION AND ANALYSIS OF THE RATIOS:

The Computation of the Financial Ratios of Amul Company Is

Show for The Financial Year 2022-2023.

Liquidity ratio:
Current asset
Current ratio =
current liability
43193
2021:
26481
= 1.63%

5335
2022:
19869
=2.68%

Acid test ratio:

 QUICK ASSETS
Acid test ratio=
CURRENT LIABILITIES

26944
2021=
24537
=1.098

26481
2022=
19869
=1.33%

Bank finance to working gap ratio:

short term bsrrowings
Capital ratio =
working capital gap

17881
2021=
1698
=10.53

5164
2022=
176
=29.3

Credit turn over ratio:

ourchase
Credit turn over ratio:
creditors

2348
2021¿
24328

=0.0096

5278
2022=
6588

=0.80
Current Assets Turnover Ratio:
net sales
Current Assets Turnover Ratio=
curent assets

82425
2021=
16712
=0.493%

25922
2022=
6216
=12.219%

Total asset turn over ratio:

net sales
Total asset turn over ratio= ×100
total asets
5278
2021= × 100
43193
=12.129%

53335
2022= ×100
10856
=4.19%

Analysis and Interpretation:

1. Current ratio
Table No.2.7

S l no year ratio
1 2021-22 1.63
2 2022-23 2.68
Source: Secondary data, annual report of Amul company
Graph No.21

Current Ratio
3

2.5

1.5
The current ratio is 1.63which is above the room 2:1 also the trend of current ratio
shows increase from 2022 to 2023. In 2022 it was 1.63 where as in 2023 it as
increase to 2.68. So the liquidity position of the company is good. The margin
safety is available to the creditors. This may result in companies favor situations
where the short- term obligations shall be meet in time due to sound liquidity
position. With the high current ratio, the company shall not raise additional finance
from banks and financial institutions.

1.2 Acid test Ratio

Table No.2.8

S l no year ratio
1 2021-22 1.09
2 2022-23 1.33
Source: Secondary data, annual report of Amulcompany
Graph No.2.2
 Acid test ratio
1.4

1.2

0.8

0.6

0.4

0.2

0
2021 2022

The current ratio is1.09, which is above the room 2:1 also the trend of current ratio
shows increase from 2022 to 2023. In 2022 it was 1.09where as in 2023 it as
increase to1.33. So the liquidity position of the company is good. The margin safety
is available to the creditors. This may result in companies favor situations where the
short- term obligations shall be meet in time due to sound liquidity position. With
the high current ratio, the company shall not raise additional finance from banks
and financial institutions.

1.3 Working Capital Gap Ratio

Table No.2.9

S l no year ratio
1 2021-22 10.53
2 2022-23 29.3
Source: Secondary data, annual report of Amul company
Graph No.2.3
 Working capital ratio
35

30

25

20

15

10

0
2021 2022

The current ratio is10.53, which is above the room 2:1 also the trend of current ratio
shows increase from 2022 to 2023. In 2022 it was 10.53where as in 2023 it as
increase to29.3. So the liquidity position of the company is good. The margin safety
is available to the creditors. This may result in companies favor situations where the
short- term obligations shall be meet in time due to sound liquidity position. With
the high current ratio, the company shall not raise additional finance from banks
and financial institutions.

1.4 Credit turnover Ratio

Table No.2.10

S l no year ratio
1 2021-22 10.36
2 2022-23 1.24
Source: Secondary data, annual report of Amul company
Graph No.2.4
 credit turnover Ratio
0.9

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2021 2022

The current ratio is10.36, which is above the room 2:1 also the trend of current ratio
shows decrease from 2022 to 2023. In 2022 it was 10.36where as in 2023 it as
decrease to 1.24. So the liquidity position of the company is good. The margin
safety is available to the creditors. This may result in companies favor situations
where the short- term obligations shall be meet in time due to sound liquidity
position. With the high current ratio, the company shall not raise additional finance
from banks and financial institutions.

1.5 Current assets turnover ratio

Table No.2.11

S l no year ratio
1 2021-22 2.02
2 2022-23 4.17
Source: Secondary data, annual report of Amul company
Graph No.05
 Current assets turnover rratio
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2021 2022

The current ratio is 2.02, which is above the room 2:1 also the trend of current ratio
shows increase from 2022 to 2023. In 2022 it was 2.02 where as in 2023 it as
increase to 4.17. So the liquidity position of the company is good. The margin
safety is available to the creditors. This may result in companies favor situations
where the short- term obligations shall be meet in time due to sound liquidity
position. With the high current ratio, the company shall not raise additional finance
from banks and financial institutions.
1.6 Total assets turnover ratio
Table No.2.12

S l no year ratio
1 2021-22 12.21
2 2022-23 4.91
Source: Secondary data, annual report of Amulcompany
Graph No.2.6

Total assets turnover ratio

4.5
4
3.5
3
2.5
The
2
1.5
1
0.5
0
2021 2022

current ratio is 12.21, which is above the room 2:1 also the trend of current ratio
shows decrease from 2022 to 2023. In 2022 it was 12.21 where as in 2023 it as
decrease to 4.91. So the liquidity position of the company is good. The margin
safety is available to the creditors. This may result in companies favor situations
where the short- term obligations shall be meet in time due to sound liquidity
position. With the high current ratio, the company shall not raise additional finance
from banks and financial institutions.
 CHAPTER – 4

SWOT ANALYSIS

Identify The Company Strength:

1.Exceptional growth.
2.Large production capacity .
3. Market leader .
4. Brand recall and equity.
5. Best quality.
6. Huge customer base.
Strength:
Largest milk producer in the world A huge base of around 11 million farmers
Traditional emphasis on ConsumptionAmul has a strong growth as its turnover for
previous year increased by almost 18% and growth revenue by 67% making it the
world thirteenth largest dairy organization.
Weakness:
1. Law suits .
2. Operational cost .
3.portfollo expansion.
4.―Weak management support and less effective customer care‖ said some
retailers.
5. With too many international brands in competition with Amul, it now finds
difficult to control its cost of operations. And thus is facing huge competition
especially in international markets.
6. Amul introduced its chocolate a while back but it has not been able to gain the
acceptance that it was aiming for.
7. The shelf life for most dairy products is limited which makes the company
vulnerable to losses .
8. Despite the distribution being strong, it is still not dispersed to rural areas.
Opportunities:
1. Per capital milk consumption.
2. Internasional markets.
3. Chocolate production .
4. With the liberalization new avenues of exploiting open market economy are
being open up.
5. Being the oldest co-operative society use their brand name as already being
leader in dairy products, the other competitors are very far behind AMUL.
6. New product from Amul i.e. Amul preferred outlet(APO) can be very successul
in the market as we receive better response from Distributors as well retailers and
consumers.
7.Must take the advantage of priority given to the Dairy industries by the Govt. in
terms ond loan.
Threats:
1. Increasing competition.
2. Negative media covefageWith the globalization and liberalization various global
brands are started to peak in.
3.Competition from other Co-operative and local industries are present in the
market.
4. The milk curdling problem allows the competitors to penetrate the market which
is previously covered by the Amul. The milk from Softe plant is responsible for that
as a retailer can not bear huge loss. Some serious problem found is of the late
delivery of milk in area like R.K.Puram. Sometime distributor‘s attitude and rude
behavior is responsible for decrease in sales.
 CHEPTER 05

Summary of Finding Suggestion and

Conclusion
Finding:

Current ratio:
This may result in company unfair situations where the short term
obligations shall be not meet in time due to bad liquidity position. With the lower
current ratio. The company shall raise additional finance from banks and
institutions.

Quick Ratio:

This may result in company unfair situations where the short term
obligations shall be not meet in time due to not good liquidity position. With the
lower quick ratio. The company shall raise additional finance from banks and
institutions.

Absolute liquid ratio:

This may result in company unfair situations where the short term
obligations shall be not meet in time due to not good liquidity position. With the
lower Absolute liquid ratio. The company shall not raise additional finance from
banks and institutions.

Debtors turnover ratio:

This may result in company unfair situations where the short term obligations
shall be not meet in time due to not good liquidity position. With the lower
Debtors turnover ratio. The company shall not raise additional finance from
banks and institutions.

Fixed assets turnover ratio:

This may result in company fair situations where the short term
obligations shall be meet in time due to good liquidity position. With the high
fixed assets turnover ratio. The company shall not raise additional finance from
banks and institutions.
Current assets turnover ratio:

This may result in company unfair situations where the short term
obligations shall be not meet in time due to not good liquidity position. With the
low Current assets turnover ratio. The company shall not raise additional finance
from banks and institutions.

Total assets turnover ratio:

This may result in company unfair situations where the short term
obligations shall be not meet in time due to not good liquidity position. With the
low total assets turnover ratio. The company shall not raise additional finance
from banks and institutions.

Gross profit ratio:

This may result in company unfair situations where the short term obligations
shall be not meet in time due to not good liquidity position. With the lower gross
profit ratio. The company shall not raise additional finance from banks and
institutions.

Operating ratio:

This may result in company fair situations where the short term obligations shall
be meet in time due to good liquidity position. With the high operating ratio. The
company shall not raise additional finance from banks and institutions.

Expense ratio:

This may result in company fair situations where the short term obligations shall
be meet in time due to good liquidity position. With the high expense ratio. The
company shall not raise additional finance from banks and institutions.

Net profit ratio:

This may result in company unfair situations where the short term obligations
shall be not meet in time due to not good liquidity position. With the lower net
profit ratio. The company shall not raise additional finance from banks and
institutions.
Proprietary ratio:

This may result in company unfair situations where the short term obligations
shall be not meet in time due to not good liquidity position. With the lower
proprietary ratio. The company shall not raise additional finance from banks and
institutions.

Fixed assets ratio:

This may result in company fair situations where the short term obligations shall
be meet in time due to good liquidity position. With the high fixed assets ratio.
The company shall not raise additional finance from banks and institutions.

Current assets ratio:

This may result in company fair situations where the short term obligations shall
be meet in time due to good liquidity position. With the high current assets ratio.
The company shall not raise additional finance from banks and institutions.

Comparative Balance Sheet Interpretation:

The overall performance as far as fixed assets are concerned is good as it has
resulted in the increase in additional production capacity.

Common Size Balance Sheet Interpretation:

It has come increase by 0.44 where as current asset has increased 3.91% this
clearly indicates that working capital position has improved considerably.

Comparative Balance Sheet Interpretation:.

The fixed assets have increased by in 53335 in 2022. and a fall in

current liabilities was in the year 2021 is 19259 and in the year 2022 is 20356
. comparing a both the year of balance Sheet was increased. In liquidity The
overall performance as far as fixed assets are concerned is good as it has
resulted in the increase in additional production capacity.
 Comparative Income Statement:

Total sales of the company was 393222 in the year 2021. And in the
year 2022 is 466265. Campering the above two years total sales was in
increased. The total sales of the company was going good. The total
expenditure of the company is in the year 2021 is 1183934. And in the year
2022 is 1403273. In above the total expenditure of the company was
increased in the year 2022. The total income statement of the company good.

Suggestion:
 In the year 2021-22 the current ratio is 1.63 it should have improved in the
upcoming year this company doesn’t reach the standard norms of ratio is 2:1
at lest it as to maintain standards norms
 In the year 2021-2022 the asset turn over ratio is 4.19 it has been decreased
in the year and it show be improved in next year.

Conclusion:
It was wonderful and learning experience for me while working on this
project. I learn about how to analyse company annual report I knew what was
going on the annual report of the company I learn about to understand the
organizational structure of the corporate world to an extent and the ways and
means how functions I learn about how to research proposal I learn research
methodology have a two type 1Primary data and 2. Secondary data I also learn
about what is primary data and secondary data I learn about the company findings
I learn about the company suggestion. In the year of 2019 is 12686. I the year
2020 is 4530. Compared to both year it was company was low in this two years
This company shows the liquidity position in not good the company growth the
position in next upcoming year.

Learning Experience:
 I learn about the annual report of the company.
 I learn about how to analyse company annual report.
 I knew what was going on the annual report of the company
 I learn about the company findings.
 I learn about the company suggestion.
 I learn about how to research proposal of the company
 APENDIX- X

Bibliography:
Books:
Shashik Gupta, R K Sharma, and Neeti GUPTA (2008) Management
Accounting, Publication Kalyani Publishers, Page NO 3.1 TO 4.102.

H. R Appannaiaiah P N Reedy and N. Mukund Sharma (4th 2011) Management

Accounting. Publication Himalaya Publishing House Page No 18 to 151.

Websites:

 https://amul.com/
 https://en.wikipedia.org/wiki/Amul
 https://www.amuldairy.com/history.php
 Annual report of the company
 APENDIX-X

BALANCE SHEET OF AMUL COMPANY FOR THE YEAR

2021 AND2022.

particulars 2021 2022

Current assets
inventories 25992 30650
Sundry debtors 3303 5380
Cash & cash balance 9690 12141
Loans &advances 4279 5164
Total Assets 43264 53335
Current liabilities

liabilities 26220 33187

provisional 261 279
26481 33466
Share capital 2401 3401
Reserve & surplus 3064 3447
Deffered tax liability 187 209
Net worth 5278 6588
Secured loans 18757 19804
Unsecured loans 501 552
Total loans 19259 20356
TOTAL 24537 26944
Fixed asets
Gross block 17881 6212
Depreciation 10856
Net block 7025 6212
Capital w/p 17881 6216
Gross block brand value 731 687
Other investment 731 687
TOTAL
COMPARATIVE OF INCOME STATEMENT OF AMUL COMPANY FOR
THE YEAR 2021 AND 2022

Particulers 2021 2022

Gross sales 393222 466265

L: exice duty _ _

Net sales 393222 466265

EXPENDATURE

Cost of goods sold 375664 445303

Staff cost 2039 2482

Manufacturing express 2299 3014

Marketing and selling expands 9862 11878
Other expenses 1267 1543

ABITDA 2019 2045

Depreciation 1377 1319

EBIT 714 727
Intrest expenses & bank expenses 169 108
Other income 330 363

Profit before tax 875 982

Income taxes 266 239

Profit after tax 609 743

TOTAL 1183934 1403273