INTRDUCTION OF THE ORGANIZARION ’ 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,14 th December 1946. ’Slogan/Punch line: “THE TASTE OF INDIA” 1
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INTRDUCTION OF THE ORGANIZARION
’ 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.comwww.amuldairy.org
1
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.
2
NATURE
The name Amul itself indicates that it is a co-operative union. There are various types of co-operative society which are as under:
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
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
3
ORGANIZATION STRUCTURE
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
Workers
4
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.
5
OBJECTIVE OF THE REPORT
(1)To measure the short term solvency of the enterprise.
(2)To measure the long term solvency of the enterprise.
(3)To measure the enterprise’s operating efficiency and profitability.
(4)To compare intra firm position and pattern position with an industry.
PURPOSE OF THE REPORT
(1) To identify the magnitude & direction of changes in enterprise’s financial & performance.
(2) To ascertain the strength & weakness of the enterprise on terms of liquidity, profitability & solvency.
6
PLANTS LOCATION
ANAND PLANT:
Anand plant is the main plant. Most of the raw material received here. Products being manufactured here which are, Butter, Flavored milk, Ghee, Milk Powder, Baby foods, Cheese etc.
MOGAR PLANT:
It is situated on Anand – Vadodara National Highway No. 8. It produces chocolates, Nutramul, Amullite, Amul Ganthia. This plant was established in 1973.
KHATRAJ PLANT:
It is situated between Nadiad – Mahemdabad. It produces the Cheese. This plant also produces paneer.
PUNE & KOLKATA:
In Pune and Kolkata no production is done. Only milk collection and milk marketing activities are performed.
CHILLING CENTRE:
Kapadwanj, Balasinor, Undel, Khembe there are 120 chilling units in socities.
7
BANKERS OF AMUL
(1) Kaira district Central Co-operative Bank Limited
(2) State Bank of India
(3) Bank of Baroda
(4) Bank of Maharashtra
(5) HDFC Bank Limited
(6) Corporation Bank
(7) Axis Bank
8
RATIO ANALYSIS
The most important task of a financial manager is to interpret the
financial information in such a manner, that it can be well understood by the
people, who are not well versed in financial information figures. The technique,
by which it is to be calculated, is known as ‘Ratio Analysis’.
1) Percentage 2) Rate 3) Proportion
Ratio Analysis is an important technique of financial analysis. It depicts
the efficiency or shortfall of the organization in the form of trend Analysis.
Different ratio appeal to different people managements, having the task
of running business efficiency, will interest in all ratios.
A Supplier of goods on credit will be partially interested in liquidity
ratios, which indicate the ability of the business to pay its bills.
Existing and future shareholders will indicate the ability of business to
purchase.
Existing and future shareholders will interest in investment ratios, which
indicate the level of return that can be expected on an investment in business.
Major customers, intent on having a continuing source of supply, will be
interested in the financial stability, as reveled by the capital structure, liquidity
and profitability ratios.
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, and
ultimately to repay capital.
A banker, gibing only short-term loans, will be interested mainly in the
liquidity of the business, and its ability to repay those loans.
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STEPS IN RATIO ANALYSIS
Collection of information, which are relevant from the financial
statements and then to calculate different ratios accordingly.
Comparison of computed ratios of the same organization or with the
industry ratios.
Interpretation, drawing of the inference and report-writing.
RATIO ANALYSIS
Ratio analyses are a powerful tool of financial analysis. A ratio is
defined as “the indicated quotient of two mathematical expressions” and as
“the relationship between two or more things”. In financial analysis a ratio is
used as a benchmark for evaluating the financial position and performance
of a firm. The relationship between two accounting figures, expressed
mathematically, is known as a financial ratio.
TYPES OF RATIOS
Several ratios; calculated from the accounting data, can be grouped
into various classes according to financial activity or function to be
evaluated. We may classify the ratios into the following categories.
Liquidity ratios
Leverage ratios
Profitability ratios
Capital Structure Ratio
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Other Ratio
LIQUIDITY RATIO
It is extremely essential for a firm to be able to meet its obligations as
they become due. Liquidity ratios measure the ability of the firm to meet its
current obligations. In fact, 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, provide a quick current assets to current obligations, provide a
quick measure of liquidity. A firm should ensure that it should not suffer
from lack of liquidity, and also that it does not have excess liquidity. The
failure of company to meet its current obligation due to lack of sufficient
liquidity, will result in poor credit worthless, loss of creditor’s confidence
for even in legal tangles resulting in the closure of the company. A very high
degree of liquidity is also bed. the firms fund will be unnecessarily tied up in
current assets therefore, it is necessary to strike a proper balance between
high liquidity and lack of liquidity.
The most common ratios, which indicate the extent of liquidity, are
Current ratio
Quick ratio
11
CURRENT RATIO
Current ratio is the ratio of total current assets to total current
liabilities. 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.
To measure the financial liquidity of Amul
Current assets = Stock, Advance & debtors, Cash & Bank Balance.
Current liabilities = Deposits, Due to societies, O/s against Expenses and
From the above ratio we can say that Total Liability to Total Asset Ratio in
2003-04 is 67%. In 2004-05 and 2005-06 it is 76%, in 2006-07 it is 73% and
in 2007-08 it is 81%. From the above ratio we interpret that in compare of
Total Assets. The percentage of Total Liability is comparatively less so it
indicate good sign for AMUL.
47
CHALLENGES TO BE MET
Expansion upgrading of plant and equipment to met increasing
demanded for quality and quantity with the help of better-qualified
personnel.
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.
Creating a national information network to ensure that accurate timely
information is available to all who need it.
Rapid progress towards the highest qualify standard strengthens
institutions leaders, managers and members.
48
CONCLUSION
Amul is a highly successful co-operative sector in world. Which truly work for farmers, who are the members of union all departments are working well and help the union to reach toward top position. I have list out some recommendations they are follow.
Amul has competitive established system. The four hands of Amul are working successfully with corporation. The people of Amul are very co-operative and enthusiastic. Amul is famous as “Anand pattern” for its co-operative organization in world. So it’s a matter proud for people of Anand as well as India. Amul is really “The Taste of India”.
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 ratio analysis shows the direction of the organization’s growth.
According to my point, success factor being Amul are hard work discipline, co-operative structure, production technology development, and the proper method for paying the debt and collecting the payment. The main cost for AMUL is transportation cost for collecting the milk from different villages. But now AMUL have the chilling facilities to some big villages (milk collection centre). So that the milk is stored up to 2-3 days. Then AMUL collect the milk from there after 3 days.