❶ AMUL (Anand Milk Union Limited), a brand name.

❷ Registered on 14th December 1946.

❸ Head-quarter in the small town of Anand, Gujarat.

❹Begin a part of Gujarat Co-operative Milk Marketing Federation

(G.C.M.M.F.).

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 .

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 Current 91640.13 687795.12 72470.09 50220.8
see that the Current Assets
Ratio of Amul for the
year 2013-14 to 2016- Current 131622.37 107613.02 96655.9 69747.24
17 is lower than Liabilities
standard ratio i.e. 2:1. Current 0.70 0.65 0.75 0.72
It’s happened because Ratio
of increase in current
liability more than
current assets. It is CURRENT RATIO
also indicates that
Current Ratio has 0.8
improved to 0.70 from 0.75 0.7
0.75
last year 0.65 due to 0.7
0.72
0.65
increased in 0.65 CURRENT RATIO
Inventories. So, the 0.6
2016-17 CURRENT RATIO
Current Ratio of Amul 2015-16
2014-15
2013-14
is not satisfactory
throughout the year.
 Year 2016-17 2015-16 2015-14 2014-13
Analysis :- It is Liquid 34378.43 26300.5 28069.54 22526.51
observed that Asset
Liquid Ratio of
Liquid 131622.37 107613.02 96655.9 69747.24
AMUL is Liabilities
decreased to 0.24
Liquid 0.26 0.24 0.29 0.32
from 0.32 for the
Ratio
year 2013-14 to
2015-16. After that
it has improved to QUICK RATIO
0.26 due to
increased in
Credit Sales. Since 0.4
0.26 0.29 0.32
the Standard of 0.24
Liquid Ratio is 1:1, 0.2
QUICK RATIO
it can be say that 0
the Liquid Ratio 2016-17 2015-16 QUICK RATIO
of the selected 2014-15 2013-14
Company is not
satisfactory.
Analysis :- It Year
Long-term
2016-17 2015-16 2015-14 2014-13

is shows that debt

Long Term Debt 27854.16 27023.74 19563.24 13252.24
and Equity
Eq.sh holder
Shareholders’ fund
Fund both are 16551.47 12842.78 10076.25 8899.35
increasing Debt-Equity
gradually ratio
throughout the 1.68 2.10 1.94 1.49
year. It is also
observed that DEBT-EQUITY RATIO
Debt Equity 3
Ratio of the 2
1.68 2.1
1.94
company has 1
1.49
decreased to 1.68 DEBT-EQUITY RATIO
in the year 2016-
0
DEBT-EQUITY RATIO
17 due to issue of
new Equity
Shares.
Net Profit Ratio
Analysis :- Year 2016-17 2015-16 2015-14 2014-13
Beside table PAT /
shows that Net Net Profit 2177.77 1545.12 1172.56 847.43
profit of the Turnover/
Company has Sales 570031.55 482498.12 414196.14 344125.45
increasing Net Profit
throughout the ratio 0.0038 0.0032 0.0028 0.0025
year due to
increasing in NET PROFIT RATIO
Total Sales. It
implies that the 0.004
0.0038
0.0032
company going 0.003
0.002
0.0028
0.0025
NET PROFIT RATIO
to a good 0.001
0
position by NET PROFIT RATIO
utilizing its
recourses
effectively.
Analysis:- Year 2016-17 2015-16 2015-14 2014-13
It is observed
that Operating EBIT 3095.80 2174.41 1605.89 1250.16
Profit of the Turnover/
570031.55 482498.12 414196.14 344125.45
company was Sales
Operating
very low. But Profit 0.0054 0.0045 0.0039 0.0036
after that it has ratio
increasing with OPERATING PROFIT RATIO
the increase in
Total Sales. It 0.006
0.0054
0.0045 OPERATING PROFIT RATIO

implies that a 0.004

0.002
0.0039
0.0036

positive effort 0

and operational OPERATING PROFIT RATIO

efficiency of the
management.
Analysis :- Year 2016-17 2015-16 2015-14 2014-13
Debtors Turn over Debtors 24529.05 19777.99 19748.24 14595.00
Ratio of the Turnover/
company has
Sales 570031.55 482498.12 414196.14 344125.45
increasing as well
as decreasing Debtors
throughout the Turnover
year. It is Ratio 0.0430 0.0410 0.0477 0.0424
happened due to
increased in DEBTORS TURNOVER RATIO
Credit Sales and
Trade Receivable 0.0477 0.05
0.043
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
 Year 2016-17 2015-16 2015-14 2014-13
Analysis :- It is Turnover
shows that Assets / Sales 570031.55 482498.12 414196.14 344125.45
Turnover Ratio of the
company has Total
decreasing throughout Assets 176028 147479.54 126295.39 91898.83
the year from 3.74 to Assets
3.24 from the year
2013-14 to 2016-17. Turnover
So, the efficiency of Ratio 3.2383 3.2716 3.2796 3.7446
the management of
AMUL is below ASSETS TURNOVER RATIO
standard since, this
Ratio measures the
efficiency of the 3.7446 4

management with 3.2383 3.2716 3.2796 3.5 ASSETS TURNOVER

which a firm utilized 3 RATIO
its Assets. 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 PBT 3095.80 2174.41 1605.89 1250.16
Turnover Ratio or Turnover/
PBT Turnover Sales 570031.55 482498.12 414196.14 344125.45
Ratio has
gradually PBT
increasing from Turnover
0.36% to 0.54% for Ratio 0.0054 0.0045 0.0039 0.0036
the year 2013-14 PBT TURNOVER RATIO
to 2016-17. It is
happened due to
increasing in PBT 0.0054
is more than the 2016-17
increasing in 0.0036 0.0045 2015-16
Turnover. 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 company Sales Turnover
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 the dairy has been
invested big amounts in the form of Current Assets 600000
572214.46
during the study period. 484368.47
500000
Net Profit Ratio of AMUL increase throughout the 415841.39
400000
year and turnover of AMUL is grow up per year on a 345348.33
300000
average rate of 18.35%; it’s indicates a good position of Sales Turnover
AMUL. 200000
100000
The current ratio of Amul were 0.72 in the year
2013-14 which was not satisfactory but after that it 0
Sales…
falls to 0.70 due to a huge increase in amount of 2016-17 2015-16
2014-15 2013-14
Trade Payable . It seems that current ratio of Amul is
below standard.
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.
 Rank Company Name Origin & Main Milk intake Estimated Market Share in
The Quick Ratio of Amul has also been dropped 2017 Operation in mill in USD Turnover per % of world milk
Countries kg Milk production
down throughout the year. It seems that firm has
made more transaction of credit Purchase than
1
transaction of credit sale. Dairy Farmers of
America USA
28.1
0.5 3.60%
2
Operating Profit Ratio of AMUL is very low but 3
Fonterra New Zealand 22.1
15.1
0.6 2.80%
Groupe Lactalis France/ Others 1.3 1.90%
last few years it has increasing with the increase of 4
Denmark/ 14.2
total Turnover. It shows the positive effort of the Aria Foods Sweden/ UK 0.8 1.80%
5 Nestle Switzerland 14.0* 1.9* 1.80%
Company. 6
Friesland Netherlands/ 12.6*
Debtors Turnover Ratio of the Company 7
Camoina Others
10.3
1.0* 1.60%
Dean Foods USA 0.8 1.30%
increasing throughout the year. It is normally good 8
DMK (ind DOC German/ 7.8
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
7.7
position; it is decrease last few years. 11
California Dairies USA
7.5
0.5 1.00%
Danone France/ Others 2.4 1.00%

PBT Turnover Ratio of AMUL is increase last four 12 Yill Group China 6.8* 1.4* 0.90%
*13 Amul (GCMMF) India 6.5 0.8 0.80%
years; its shows a good sign of the Company 14 Muller German/ UK 6.3 1.2 0.80%
15 6.1
AMUL is achieving the Rank 1st in all over the 16
Glanbia Group
Agropur
Ireland
Canada/ USA 5.8
0.7
1.0
0.80%
0.70%
India of Milk PRODUCTION & EXPORTS. 17 Land O' Lakes USA 5.8* 0.7* 0.70%
18 Mengniu China 5.8 1.4 0.70%
AMUL is also achieving the Rank 13st in all over 19 Groupe Sodiaal France 5.2 1.1 0.70%

the world of PRODUCTION. 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.