FINANCIAL STATEMNET ANALYSIS

The statements prepared and presented by a business enterprise at the end of accounting year i.e. after the balance sheet and profit and loss account are declared it is called financial statements. With the help of these statements we can get the true picture of the current business with the comparing four - five year back financial result. This statement is also helpful to the money lender or the trade creditors for credit periods. These statements are also helpful to the management committee to take some important decisions. In these statements some of the following analysis or statements are prepared like, Trend Percentage Analysis, Common Size Statements and Fund Flow & Cash Flow Statements. In the Trend Percentage Analysis, the financial statements of past few years are also presented that the percentage relation of various items of the statements with some important base item is shown. The Common Size Statements are used to provide common base for comparison. For Example, the total of the balance sheet is taken as 100 and various items in the balance sheet are stated as a percentage of the total of 100.

COMMON SIZE STATEMENTS

Common Size Statement is different from the Trend Percentage Method. In the common size statement we decide the base year and each and every years total are divided with that figure but in Trend Percentage Method particular items base years balance is taken as denominator and the other years figure are taken as numerator. ANAND MILK UNION LIMITED
1

LIABLITIES:
(The entire figures are calculated after taking the base of total Liabilities of that particular year) PARTICULARS Share Capital Reserve & Surplus Red. Debentures Loans Fixed Deposit C.L & Provision Net Profit Total 03-04 Rs 1213.04 7234.43 1187.68 7150.00 2502.48 6786.00 252.46 26326.09 03-04 04.61 27.48 04.51 27.16 09.51 25.77 00.96 100 04-05 05.52 16.69 04.65 29.00 11.31 31.60 01.23 100 All figures are in % 05-06 06.50 16.24 04.73 21.51 13.27 36.43 01.32 100 06-07 07.69 15.14 04.45 09.81 14.31 47.00 01.60 100 07-08 06.22 10.92 02.90 27.89 12.08 38.73 01.26 100

INTERPRETATION:
2003-04, 2004-05 and 2005-06:

The percentage of Current

Liability, Loans and Reserve and Surplus covers more than 75% of total Liability; the reason of lower percentage of Net Profit is higher amount of Loans, Debentures, Current Liability and Fixed Deposits.
2006-07:

In this year the amount of Loan is decreased

by 50% from last year. And in compare the percentage of Current Liability increased and covered 47% of Total Liability. So in that year the percentage of Net Profit is slightly higher than the last three years.
2007-08:

In this year the amount of Loan are increased

by more than 350%. Increase in amount of Loan, Current Liability and Fixed Deposit is reason for decline in percentage of Net Profit.

ASSETS:
2

ANAND MILK UNION LIMITED

(The entire figures are calculated after taking the base of total Assets of that particular year) PARTICULARS Fixed Assets Capital W.I.P Investment Stock Adv. & Debtors Cash & Bank Bal. Deferred Expenses Total 03-04 Rs 9588.26 0000.32 0631.31 4588.81 5809.35 5708.04 00.00 26326.09 03-04 36.42 00.00 02.40 17.43 22.07 21.68 00.00 100 04-05 24.16 00.00 02.27 30.31 34.48 08.78 00.00 100 All figures are in % 05-06 20.20 00.21 02.09 39.32 32.22 05.67 00.29 100 06-07 20.85 00.00 01.68 35.24 27.44 14.47 00.32 100 07-08 17.07 00.35 01.44 43.88 27.73 09.23 00.30 100

INTERPRETATION:
From the above table we can say that more than 75% of Total

Assets are covered in Fixed Assets, Stock and Debtors.

The percentage of Investment covered more than 2% in first three

year, and 1.5% in last two year, of Total Assets.

The percentage of Cash and Bank Balance covered 21% in 2003-

04 and than increased averagely by 9% of Total Assets.

INCOME:
(The entire figures are calculated after taking the base of total Income of that particular year) PARTICULARS All figures are in %
3

03-04 Rs 03-04 04-05 05-06 06-07 07-08

ANAND MILK UNION LIMITED

Net Sales Interest Income Dividend Income Sundry Income Prior Period Income Closing Stock Total

54088.29 00408.84 00072.31 00222.41 00002.73 03392.48 58187.06

92.96 00.70 00.12 00.38 00.01 05.83 100

89.48 00.34 00.10 00.43 00.01 09.64 100

89.00 00.13 00.08 00.62 00.04 10.13 100

91.35 00.28 00.09 00.48 00.02 07.78 100

88.03 00.21 00.06 00.62 00.01 11.07 100

INTERPRETATION:
From the above table we can say that every year the percentage

of Sales covers total income averagely by 90% and the other amount are covered by other incomes.
From the table we conclude that the percentage of Closing Stock

is increased every year in percentage of total income.

EXPENDITURE:
(The entire figures are calculated after taking the base of total Expenditure of that particular year) PARTICULARS Opening Stock Milk Purchase R.M. Consumption Research & Ext.Exp Processing Expenses
4

All figures are in % 04-05 05.11 60.03 15.11 00.88 00.45 05-06 08.12 58.94 13.77 00.91 00.72 06-07 08.94 58.54 13.11 01.07 00.80 07-08 05.71 64.03 12.92 00.97 00.90

03-04 Rs 05594.50 31903.37 09285.22 00526.39 00173.20

03-04 09.61 54.83 15.96 00.90 00.34

ANAND MILK UNION LIMITED

Packaging Expenses Power and Fuel Exp. Salary and Wages P.F & Gratuity Repairs and Main. Freight & For. Exp. Marketing Expenses Postage & Telegram Insurance premium Rent Rates & Taxes Audit Fees Administrative Exp. Int. & Bank Commi. Depreciation Decline in provision Prior period Exp. Net profit Total

03385.08 02150.30 01241.34 00303.53 00494.12 00269.67 00035.46 00029.92 00025.02 00010.25 00065.55 00040.94 01099.22 01281.32 00000.0

05.82 03.70 02.09 00.54 00.81 00.46 00.06 00.05 00.04 00.02 00.11 00.12 01.89 02.20 00.00

06.50 03.50 02.12 00.56 01.01 00.46 00.10 00.07 00.07 00.04 00.11 00.17 01.28 01.82 00.07

06.67 03.24 01.75 00.61 00.92 00.58 00.11 00.07 00.09 00.05 00.10 00.17 01.00 01.46 00.06

07.21 03.23 01.53 00.53 00.95 00.78 00.12 00.06 00.09 00.05 00.10 00.15 00.79 00.75 00.03

06.87 03.13 01.38 00.39 00.87 00.83 00.09 00.05 00.05 00.04 00.08 00.14 00.67 00.47 00.04

0 00020.20 00.03 00.07 00.12 00.03 00.04 00252.46 00.43 00.47 00.42 00.46 00.37 58187.06 100 100 100 100 100

INTERPRETATION:
From the above table we conclude that in every year more than 70% of total expenses are made for Purchase of Milk and Raw Materials.
In first three years, more than 15% and 12% in last two years of

the total expenses are made for Packaging, Power and Fuel, Salary and Wages, Depreciation and Interest and Bank Commission. More than 10% to 12% amounts of total expenses are made for other expenses mentioned above in table.

ANAND MILK UNION LIMITED

TREND PERCENTAGE ANALYSIS

For studying the Trend of various items of financial statement, figure of a single year are not enough, comparative figure for some more years are significantly required. Such comparative figures may be either absolute figure or may be presented in percentage form. In this method we assume one year as a base year, and compare that figure with similar items of some other years. In this method all comparative figure are shown in the percentage so that it is called percentage or Trend Ratio Analysis.

LIABLITIES:
(The entire figures are calculated after taking the base year 2003-04) PARTICULARS 03-04 Rs Share Capital 1213.04 Reserve & Surplus Red. Debentures Loans Fixed Deposit
6

All figures are in % 03-04 100 100 100 100 100 04-05 115.0 3 058.3 3 098.9 4 102.5 2 114.2 05-06 06-07 07-08 131.8 163.21 183.75 7 055.2 053.91 054.13

7234.43 1187.68 7150.00 2502.48

1 097.92 096.43 087.52 073.99 130.4 035.3 139.86

8 147.39 173.18

ANAND MILK UNION LIMITED

C.L & Provision Net Profit

6786.00 252.46

100 100

1 117.7 2 123.2 8

2 132.0 5 128.2 3

168.4 7 163.0 0

204.72 178.84

INTERPRETATION:
From the above table we conclude that
SHARE CAPITAL:

The percentage of paid up Share Capital

increased averagely by 15% for first three year and than increased by more than 25% because of increase in Authorize Share Capital by 100% from 2006-07.
FIXED DEPOSIT AND CURRENT LIABLITIES:

The

percentage of Fixed Deposits increased averagely by 10% to 12% in whole five years. Current Liability averagely increased by 30%. And it becomes more than double from the base year.
DEBENTURES, LOANS AND NET PROFIT: The

percentages of Debentures are declining every year. The percentage of Loan are declined up to 2006-07 and increased in 2007-08. The percentages of Net Profit are increased every year.

ASSETS:
(The entire figures are calculated after taking the base year 2003-04) PARTICULARS Fixed Assets Investment 03-04 Rs 9588.26 0631.31 03-04 100 100 04-05 063.7 0 090.8 All figures are in % 05-06 051.8 2 081.3 06-07 07-08 056.0 063.85 2 068.5 081.54
7

ANAND MILK UNION LIMITED

Stock Adv. & Debtors Cash & Bank Bal.

4588.81 5809.35 5708.04

100 100 100

5 166.97 150.0 0 038.8 8

5 210.7 5 136.4 0 024.4 5

6 197.8 2 121.6 6 065.3 1

342.96 171.22 058.00

INTERPRETATION:
From the above table we conclude that
FIXED ASSETS INVESTMENT AND DEBTORS:

The

percentage of Fixed Assets, Investment and Debtors are decreasing up to 2006-07 and increase in Fixed Assets by 7.5%, Investment by 13% and Debtors by 50% in compare to last year i.e. 2006-07.
STOCK:

The Stock is increased by more than 100% in 2005The percentage of Cash

06 and 200% in 2007-08 from the base year.

CASH AND BANK BALANCE:

Balance is decreased in first two year from the base year and increased in last two year from the 2005-06.

INCOME:
(The entire figures are calculated after taking the base year 2003-04) PARTICULARS
8

All figures are in % 03-04 Rs 03-04 04-05 05-06 06-07 07-08

ANAND MILK UNION LIMITED

Net Sales Interest Income Dividend Income Sundry Income Prior Period Income Closing Stock

54088.2 9 00408.8 4 00072.3 1 00222.4 1 00002.7 3 03392.48

100 100 100 100 100 100

109.92 054.9 4 087.8 8 129.12 221.6 1 188.8 9

129.79 025.44 089.10 219.23 1273.62 235.50

150.9 2 061.4 7 105.8

198.17 063.63 105.87

7 194.77 339.02 421.2 4 204.9 4 058.97 397.25

INTERPRETATION:
From the above table we conclude that
NET SALES AND SUNDRY INCOME:

The percentage of

Net Sales is increasing every year and becomes double in 200708. Sundry Income is also increased every year from the base year and becomes double in 2005-2006 and becomes triple in 2007-08.
INTREST AND DIVIDENED INCOME: The

percentage of

Interest Income is decreasing every year from the base year. And the Dividend Income is decreased in first two year and increased in last two year from the base year.

ANAND MILK UNION LIMITED

EXPENDITURE:
(The entire figures are calculated after taking the base year 2003-04) PARTICULARS Opening Stock Milk Purchase R.M. Consumption Research & Ext.Exp Processing Expenses Packaging Expenses Power and Fuel Exp. Salary and Wages P.F & Gratuity Repairs and Main. Freight & For. Exp. Marketing Expenses Postage & Telegram Insurance premium Rent Rates & Taxes
10

All figures are in % 03-04 Rs 05594.5 0 31903.37 09285.2 2 00526.3 9 00173.2 0 03385.0 8 02150.3 0 01241.3 4 00303.5 3 00494.1 2 00269.6 7 00035.4 6 00029.9 2 00025.0 2 00010.2 03-04 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 04-05 060.6 3 125.0 3 108.1 3 110.7 4 173.0 8 127.53 108.1 0 113.65 121.4 1 136.42 113.47 05-06 114.5 4 145.7 5 117.0 9 138.1 8 329.20 155.6 2 119.24 111.0 5 158.7 3 149.0 0 172.7 06-07 07-08 142.8 124.27 1 163.97 244.38 126.2 0 181.3 6 410.8 169.35 224.66 628.85

7 190.19 247.08 134.0 4 110.3 177.08 135.09

7 154.96 158.17 172.6 2 257.8 215.24 376.44

1 0 196.61 275.29 299.40 310.18 150.5 3 175.33 227.1 194.1 8 304.1 5 458.6 188.8 187.63

7 338.56 241.88 404.2 425.56

ANAND MILK UNION LIMITED

Audit Fees Administrative Exp. Int. & Bank Commi. Depreciation Prior period Exp. Net profit

5 00065.5 5 00040.9 4 01099.2 2 01281.3 2 00020.2 0 00252.4 6

100 100 100 100 100 100

2 110.0

3 126.5

9 141.6

152.03

5 5 7 298.43 312.23 326.11 407.35 077.2 0 094.4 071.7 9 090.5 064.1 4 052.2 074.12 044.77

4 8 2 234.25 427.32 137.77 236.18 123.27 128.2 3 162.99 178.84

INTERPRETATION:
From the above table we conclude that Raw Material Consumption and Milk Purchases are increased by .69 times and 2.5 times.
Interest & Bank Commission and Depreciation both are declining

every year from the base year. The percentage of Depreciation is decreased by 0.50 times in 2007-08 from the base year.
Processing Expenses is increased by 6 times, Rent Rates and

Administrative Expense is increased by 4 times, Marketing Expense is increased by 3 times, Packaging Expense, Insurance Premium and Research Expense is nearly increasing by 2.5 times, Repairs and Maintenance is increased by 2 times in 2007-08 from the base year.

ANAND MILK UNION LIMITED

11

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.

12

ANAND MILK UNION LIMITED

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.

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 ANAND MILK UNION LIMITED
13

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 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 creditors
14

ANAND MILK UNION LIMITED

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

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 Purchases, Sundry Creditors, Provisions. Current assets Current Ratio = ________________ ANAND MILK UNION LIMITED
15

Current liabilities

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

CURRENT ASSETS
16102.2 18596.49 18990.94 19874.21 28995.9

CURRENT LIABILITY
6786 8988.56 9460.79 12106.54 23992.01

RATIO (C.A/C.L)
2.37 2.07 2.12 1.64 1.21

CURRENT RATIO 2.5 2 TIMES 1.5 1 0.5 0 current ratio 2003-04 2004-05 2005-06 2006-07 2007-08 2.37 2.07 2.12 1.64 1.21

YEAR

INTERPRETATION
The ideal Current Ratio of any firm is 2:1. In AMUL first three year the ratio is more than 2, it indicates good financial ability of the sector. But after that the ratio is declining because of the increase in Current Liability. It indicates that day by day the amounts of creditors are increasing which is not good for the sector.
16

ANAND MILK UNION LIMITED

QUICK RATIO
Quick ratio is also called acid test ratio. It is the ratio between quick current assets and current liabilities. It is calculated by dividing the quick assets by current claim. Quick ratio is the measurement of firms ability to convert its current assets quickly into cash in order to meet its current claim. The term quick assets refers to current assets which can be converted into cash immediately or at a short notice without reduction in value of quick ratio. Quick Assets = Stock, due from societies, Advances, trade and Sundry Debtors Cash and Bank Balance Quick assets Quick Ratio = ______________ Current liabilities ANAND MILK UNION LIMITED
17

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

QUICK ASSETS
11365.37 10686.31 9078.21 10533.65 12952.44

CURRENT LIABILITY
6786 8988.56 9460.79 12106.54 23992.01

RATIO (Q.A/C.L)
1.67 1.19 0.96 0.87 0.54

LIQUID RATIO 1.8 1.6 1.4 TIMES 1.2 1 0.8 0.6 0.4 0.2 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 1.67 1.19 0.96 0.87 0.54

INTERPRETATION
The ideal Quick Ratio is 1:1. In AMUL the Quick Ratio is more than 1 in 2003-04 and 2004-05. But than after it started declining and reached below 1 for the next three years. The reason is continuous increase in the current liability.

18

ANAND MILK UNION LIMITED

LEVERAGE RATIO
In the short term creditors like bankers and suppliers of raw material; are more concerned with firms current debt-paying ability, on the other hand, long-term creditors like debenture holders, financial institution are more concerned with the firms long term financial strength In fact a firm should have short as well as long term financial position. To judge the long-term financial position of the firms financial leverage or capital structure ratios are calculated. These ratios indicate funds provided by owners and lenders. As a general rule, there should be an appropriate mix of debt and owners equity in financing the firms assets.

STOCK TURNOVER RATIO

This ratio indicates the efficiency of the firm in selling its product. It is calculated by dividing the cost of good sold by average inventory. Average Stock Inventory turnover = ___________________ 300 Cost of Goods Sold ANAND MILK UNION LIMITED
19

Cost of good sold =

Opening stock + Purchase of Milk + Purchase of Raw Material + Purchase expenses Closing stock

Opening Stock + Closing Stock Average Inventory = ____________________________ 2

YEAR

AVGERAGE COST STOCK GOODS SOLD

OF

RATIO (A.S./C.O.G.S)*300
31 days 31 days 38 days 34 days 35 days

2003-04 2004-05 2005-06 2006-07 2007-08

4493.49 4900.41 7199 7471.21 10214.83

43660.28 47221.13 56259.48 65762.20 88181.97

STOCKS TURNOVER

40 35 30 DAYS 25 20 15 10 5 0 2003-04 2004-05 31 31

38 34

35

2005-06 YEARS

2006-07

2007-08

20

ANAND MILK UNION LIMITED

INTERPRETATION
From the above ratio we can say that AMUL is turning its inventory of finished good into sales in 31 days in 2003-04 and 2004-05, 38 days in 2005-06, 34 days and 35 days in 2006-07 and 2007-08 respectively. It is good for any co-operative sector.

DEBTORS TURNOVER RATIO

A firm sells goods for cash and credit is used as a marketing tool by a number of companies. When the firm extends credit to its customer. Book debts (debtors or receivables) are created in the firms accounts. Book debts are expected to be converting into cash over a short period and, therefore are included in current assets. The liquidity position of the firm depends on the quality of debtors to a great extent. Financial analyses apply three ratios to judge the quality or liquidity debtors: (a) debtor turnover (b) Collection period and (c) again schedule of debtors. Debtors turnover Ratio can be found out dividing Average Debtors by Sales Sales = Net Sales of Milk and Milk products Debtors = Trade Debtors, Sundry debtors, Debtors Debtors Turnover Ratio = ________ 300 Sales

ANAND MILK UNION LIMITED

21

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

AVGERAGE SALES DEBTORS

6690.15 6797.52 7679.62 6759.25 7625.77 54088.29 59459.07 70206.23 81631.69 107187.29

RATIO (A.D./SALES)*300
37 days 34 days 33 days 25 days 21 days

DEBTORS TURNOVER 40 35 30 DAYS 25 20 15 10 5 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 37

34

33 25 21

INTERPRETATION
From the above ratios we can say that AMULS Debtors remain outstanding for 37 days in 2003-04, 34 days in 2004-05, 33 days, 25
22

ANAND MILK UNION LIMITED

days, 21 days in 2005-06, 2006-07 and 2007-08 respectively. The Collection period of Debtors is decreasing day by day. It is good sign for AMUL.

CREDITOR TURNOVER RATIO

Creditor turnover ratio is computed by net credit purchases to average creditors. Creditors = Outstanding against Purchases + Societies + Outstanding against Expenses + Sundry Creditors Average Creditors Creditor Turnover Ratio = __________________ 300 Net Purchase

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

AVGERAGE NET CREDITORS PURCHASE

5930.37 7098.06 8095.97 9798.1 12312.25 41188.59 49931.03 57374.94 64034.16 93690.87

RATIO (A.C. /N.P.)*300

43 days 43 days 42 days 46 days 39 days

ANAND MILK UNION LIMITED

23

CREDITORS TURNOVER
48 46 44 DAYS 42 40 38 36 34 2003-04 2004-05 2005-06 YEARS 2006-07 2007-08 39 43 43 42 46

INTERPRETATION
From the above we can say that the payment of Creditors is outstanding by AMUL. 43 days in 2003-04 and 2004-05, 42 days, 46 days, 39 days in 2005-06, 2006-07 and 2007-08 respectively. The payment period to Creditor remain same in every year. It is good for AMUL.

24

ANAND MILK UNION LIMITED

FIXED ASSETS TURNOVER RATIO

Firm may wish to know its efficiency of utilizing fixed assets separately for AMUL the fixed assets turnover ratio is Sales Fixed Assets Turnover = __________________ Net Fixed Assets

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

NET FIXED ASSETS

9588.26 6107.85 4968.66 5371.69 6122.97

RATIO (Sales/N.F.A)
5.64 9.73 14.13 15.20 17.51

ANAND MILK UNION LIMITED

25

FIXED ASSET TURNOVER 20 18 16 14 12 10 8 6 4 2 0

17.51 14.13 9.73 5.64 15.2

TIMES

2003-04

2004-05

2005-06 YEAR

2006-07

2007-08

INTERPRETATION
From the above ratio we can say that in AMUL Fixed Assets is recovered in 5.64 times in 2003-04, 9.73 times in 2004-05, 14.13 times, 15.2 times, 17.51 times in 2005-06, 2006-07 and 2007-08 respectively. We can say that the total Fixed Assets Turnover is increasing day by day. It is good sign for AMUL.

26

ANAND MILK UNION LIMITED

WORKING CAPITAL TURNOVER RATIO

A firm may also like to relate net working capital to sales. It may thus computer net working capital turnover by dividing sales by net working capital turnover for Amul the ratio is Sales _______________ Working Capital

Net Current assets Turnover =

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

WORKING CAPITAL
9320.2 9607.93 9530.15 7767.67 5033.89

RATIO (Sales/W.C.)
5.80 6.18 7.37 10.51 21.42

ANAND MILK UNION LIMITED

27

WORKING CAPITAL TURNOVER 25 20 TIMES 15 10.51 10 5 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 5.8 6.18 7.37

21.42

INTERPRETATION
From the above we can say that AMUL is able to recover its Working Capital 5.8 times in 2003-04, 6.18 times in 2004-05, 7.37 times in 200506, 10.51 times 2006-07 and 21.42 times in 2007-08. Working Capital Turnover is also increasing day by day. It is good and from it AMUL can generate more and more sales.

28

ANAND MILK UNION LIMITED

TOTAL ASSETS TURNOVER RATIO

Total Assets Turnover Ratio shows the firms ability in generating sales from all financial sources committed to total assets thus Sales Total Assets Turnover = _____________ Total Assets Total assets (TA) include net fixed assets (NFA) and current assets (CA) for Amul the ratio is

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

TOTAL ASSETS
26326.08 25277.94 24595.17 25761.82 35864.51

RATIO (Sales/T.A.)
2.05 2.35 2.85 3.17 2.99

ANAND MILK UNION LIMITED

29

TOTAL ASSET TURNOVER 3.5 3 2.5 TIMES 2 1.5 1 0.5 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 2.35 2.05 2.85 3.17

2.99

INTERPRETATION
From the above data we can say that in AMUL Total Asset Turnover is recovered 2.05 times in 2003-04, 2.35 times in 2004-05, 2.85 times, 3.17 times, 2.99 times in 2005-06, 2006-07 and 2007-08 respectively. Till 2007-08 the Total Asset Turnover Ratio is increasing because the total asset is quiet same in every year. But in 2007-08 the Total Assets is increasing by 40% from 2006-07. So the turnover ratio is declining in that year.

30

ANAND MILK UNION LIMITED

NET ASSETS TURNOVERS

The firm can compute net assets turnover simply by dividing sales by net assets (NA) net assets turnover may also called capital employed turnover for Amul the ratio is Net Assets = Net Fixed Asset + Current Asset after deducting Current Liability Sales Net assets turnover = ____________ Net Assets

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

NET ASSETS
18908.46 9607.93 14498.81 13139.36 11126.86

RATIO (Sales/N.A.)
2.86 6.18 4.84 6.21 9.63

ANAND MILK UNION LIMITED

31

ASSETS TURNOVER 12 10 8 TIMES 6 4 2 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 2.86 6.18 4.84 6.21 9.63

INTERPRETATION
From the above data we can say that Assets Turnover in AMUL during 2003-04 is 2.86 times, 6.15 times in 2004-05, 4.84 in 2005-06, 6.21 times in 2006-07 and 9.63 times in 2007-08 respectively. The Net Asset Turnover is increasing day by day. But the total Current Liability is also increasing and it is directly affected to Net Asset Turnover. If the Current Liability is decreased than the Net Asset can be Turnover by more than this ratio.

32

ANAND MILK UNION LIMITED

PROFITABILITY RATIOS
A company should earn profit to survive and grow over a long period of time. Profit are essential but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits irrespective of social consequences and profit is looked upon as a term of above since some firms always want to maximize profits at due cost of employees, customers, and society. Except such infrequent cases, it is fact profit must be earned to sustain the operation of the business to be able to obtain funds from investor for expansion and growth and to contribute towards the social overhead for the welfare of society. Profit is the difference between revenues and expenses over a period of time. Profit is the ultimate output of the company; and it will have no future if it fails to make sufficient profits. There fore financial manager should continuously evaluate the efficiency of its company in term of profits. Generally two types of profitability ratios are calculated. Profitability in relation to sales Profitability in relation to investment Measures of Profit Profit can be measured in various ways 1) Gross Profit (2) Net Profit

ANAND MILK UNION LIMITED

33

GROSS PROFIT TO SALES RATIO

Gross profit ratio is calculated by dividing Gross Profit by sales. Here gross profit is the different between sales and the manufacturing cost of good sold. Sales Cost of Good sold ______________________ 100 Sales

Gross profit margin =

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

GROSS PROFIT
10428.01 12235.94 13946.75 15869.49 19005.32

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

RATIO (G.P./Sales)*100
19.27 20.58 19.87 19.44 17.73

34

ANAND MILK UNION LIMITED

GROSS PROFIT RATIO 21 20.5 20 19.5 19 18.5 18 17.5 17 16.5 16 20.58 19.87 19.27 19.44

PERCENTAGE

17.73

2003-04

2004-05

2005-06 YEAR

2006-07

2007-08

INTERPRETATION
From the above ratio we can say that Gross Profit Ratio in 2003-04 is 19.27%, 20.58% in 2004-05 20.58%, 19.87% in 2005-06, 19.44% in 2006-07 and 17.73% in 2007-08 respectively. The total amount of Gross Profit is increasing every year. But the ratio is decreasing; the main reason is increase in the Purchase Price Milk and Raw Material.

ANAND MILK UNION LIMITED

35

NET PROFIT RATIO

Net Profit is obtained when operating expenses; interest and taxes are subtracted from gross-profit. The net profit margin ratio is measured by dividing profit after tax by sales. Net profit Net profit margin = __________ 100 Sales

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

NET PROFIT
252.46 311.23 323.74 411.50 451.51

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

RATIO (N.P./Sales)
0.46 0.52 0.46 0.50 0.42

36

ANAND MILK UNION LIMITED

NET PROFIT 0.6 0.5 PERCENTAGE 0.4 0.3 0.2 0.1 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 0.46

0.52 0.46

0.5 0.42

INTERPRETATION
From the above figure we can say that the percentage of Net Profit is 0.46% in 2003-04 and 2005-06. In 2004-05 it is 0.52%, 0.50% in 200607 and 0.42% in 2007-08 respectively. The total amount of sales is increased every year but at the other side total operating expenses is also increased day by day. So it directly affect to Net Profit Ratio of AMUL.

ANAND MILK UNION LIMITED

37

OPERATING EXPENSES RATIO

Operating Expenses ratio is found out by dividing operating cost by sales. Operating Cost = Total Cost Interest Provision Closing Stock
Operating Cost Operating Cost Ratio = __________ Sales

100

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

OPERATIN G COST
53422.7 58785.45 69636.1 80627.15 106956.62

SALES
54088.29 59459.07 70206.23 81631.69 107187.29

RATIO (O.C./Sales)
98 98 99 98 99

38

ANAND MILK UNION LIMITED

OPERATING EXPENSE 99.2 99 PERCENTAGE 98.8 98.6 98.4 98.2 98 97.8 97.6 97.4 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 98 98 98

99

99

INTERPRETATION
From the above data we can say that Operating Expense remains same during the 2003-04, 2004-05, 2006-07 i.e.98 %. In 2005-06 and 200708 it was 99%. The Operating Expenses of AMUL is increasing out of 1 Rs of sales 98 and 99 paisa is consumed in operating Expenses. The main reason is increase in Marketing, Packaging, and Processing Expenses and the price of Raw Material and Milk.

ANAND MILK UNION LIMITED

39

RETURN ON CAPITAL EMPLOYEED

Return on Capital Employed Ratio is found out by dividing Net Profit by Capital Employed Capital Employed = Total Assets Misc. Expenses Current Liability Net profit Return on Capital Employed = __________

100

Capital Employed

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

NET PROFIT
252.46 311.23 323.74 411.50 451.51

CAPITAL EMPLOYED
19540.09 16289.38 15063.48 13572.19 11767.44

RATIO (N.P./C.E.)
1.29 1.91 2.15 3.03 3.84

40

ANAND MILK UNION LIMITED

RETURN ON CAPITAL EMPLOYED 4.5 4 PERCENTAGE 3.5 3 2.5 2 1.5 1 0.5 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 1.91 1.29 2.15 3.03

3.84

INTERPRETATION
From the above data we can say that Return on Capital Employed during 2003-04 is 1.29%. It was 1.91% in 2004-05, 2.15% in 2005-06, 3.03% in 2006-07 and 3.84% in 2007-08 respectively. Return on Capital Employed is increasing day by day. The recover Ratio of Capital Employed in the business is increasing it is good sign for AMUL.

ANAND MILK UNION LIMITED

41

RETURN ON SHAREHOLDER FUND

Return on Shareholder Fund Ratio is found out by dividing Net Profit by Shareholders Fund. Shareholders Fund = Equity Share Capital + Reserve and Surplus Misc. Expenses

Net profit Return on Shareholders Fund = __________

100

Shareholders Fund

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

NET PROFIT
252.46 311.23 323.74 411.50 451.51

SHAREHOLDERS FUND
3201.91 3452.65 3683.51 4138.50 4486.30

RATIO (N.P. /S.F.)

7.88 9.01 8.78 9.94 10.06

42

ANAND MILK UNION LIMITED

RETURN ON SHARE HOLDER FUND 12 10 PERCENTAGE 8 6 4 2 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 7.88 9.01 9.94 8.78

10.06

INTERPRETATION
From the above ratio we can say that the Return on Shareholder Fund is 7.88% in 2003-04, 9.01% in 2004-05, 8.78% in 2005-06, 9.94% in 2006-07, and 10.06% in 2007-08 respectively. The Return on Shareholders Fund is increasing every year. So it is good sign that the recover ratio of amount invested is increasing.

ANAND MILK UNION LIMITED

43

EARNING PER SHARE

The profitability of the common shareholders investment can also be measured in many other ways on such measure is to calculate the earning per share. The earning per share is calculated by dividing the profit after taxes by the total number of common (ordinary) shares outstanding. EPS calculation made over years indicate whether or net the firms earning power on per-share basis has changed over that period. Earning per share of the company should be compared with the industry average and the earning per share of other firms. Earning per share simply shows the profitability of the firm on per share basis. Net Profit Earning per share = __________________________________ Number of common shares outstanding

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

NET PROFIT
252.46 311.23 323.74 411.50 451.51

NO. OF
12.13 13.95 15.97 19.80 22.29

RATIO
20.81 22.31 20.25 20.78 20.26

SHARES O/S (N.P. /Share)

44

ANAND MILK UNION LIMITED

EARNING PER SHARE 22.5 22 21.5 IN RS 21 20.5 20 19.5 19 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 20.81 20.25 20.78 20.26 22.31

INTERPRETATION
From the above data we can say that Earning per Share is 20.81Rs in 2003-04, 22.31 Rs in 2004-05, 20.25 Rs in 2005-06, 20.78 Rs in 200607 and 20.26 Rs in 2007-08. Earning per Share ratio is comparatively better for AMUL. The shares of AMUL are distributed only to the Societies, so the main earning is distributed to its Societies.

ANAND MILK UNION LIMITED

45

DIVIDEND PAYOUT RATIO

Dividend payout ratio is known as a payout ratio. It measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. In other words, the D/P ratio shows what percentage share the net profit after taxes and preference dividend is paid out as a dividend to the equity holders. It can be calculated by dividing the total dividend paid to owners by the total profits/earnings available to them. Alternatively it can be found out by dividing the DPS by the EPS. The rate of dividend per ordinary share = 15 % Amt. provided for Dividend ________________ 100 Earning per share

(1) Dividend =

(1) Dividend payout ratio =

Dividend per share ________________ 100 Earning per share

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

DIVIDENED
14.53 14.53 14.60 14.50 14.60

EARNING PER SHARE

20.81 22.31 20.25 20.78 20.26

RATIO (Div./E.P.S)
69.82 64.95 72.10 69.78 72.06

46

ANAND MILK UNION LIMITED

DIVIDENDED PAY OUT RATIO 74 72 PERCENTAGE 70 68 66 64 62 60 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 64.95 69.82

72.1 69.78

72.06

INTERPRETATION
From the above ratio we can say that Dividend Pay Out Ratio is 69.82% in 2003-04, 64.95% in 2004-05, 72.10% in 2005-06, 69.78% in 2006-07 and 72.06 in 2007-08. From the Total Earning per Share averagely 70% amount is distributed to the Shareholders.

CAPITAL STRUCTURE RATIO

ANAND MILK UNION LIMITED
47

In this type of Ratio the comparison made for Capital Structure. In this Ratio the proportion is to be found out between different types of long term capital. In this type of ratios we can find out following type of ratios Debt Equity Ratio Proprietary Ratio

DEBT EQUITY RATIO

Debt-Equity Ratio Compute by dividing Total Debt to Net Worth. Total Debt = Debentures + Deposits + Long Term Loans Net Worth = Equity Share Capital + Reserve & Surplus Total Debt Debt-Equity Ratio = ____________ Net Worth

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

TOTAL DEBT
10840.16 10363.16 9216.63 7363.71 5874.95

NET WORTH
3201.91 3452.65 3754.41 4221.59 4591.36

RATIO (T.D./N.W)
3.38 3.00 2.45 1.74 1.28

48

ANAND MILK UNION LIMITED

DEBT-EQUITY RATIO 4 3.5 3 TIMES 2.5 2 1.5 1 0.5 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08

3.38 3 2.45 1.74 1.28

INTERPRETATION
From the above ratio it is clear that Debt-Equity Ratio in 2003-04 is 3.38 times. It was 3.0 times in 2004-05, 2.45 times in 2005-06, 1.74 times in 2006-07 and 1.28 times in 2007-08. The ideal Debt-Equity Ratio is 2:1, in AMUL 2003-04, 2004-05 and 2005-06 the Ratio is more than 2, because of the higher amount of Long Term Debt but than after it is declining, so it shows that Total Long Term Debt is decreasing. It is good sign for AMUL.

ANAND MILK UNION LIMITED

49

PROPRIETARY RATIO
Proprietary Ratio is found out by dividing Proprietary Fund by Total Assets. Proprietary Fund = Equity Share Capital + Reserve and Surplus Proprietary fund Proprietary Ratio = ____________ Total Assets

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

PROPRIETAR Y FUND
3201.01 3452.65 3754.41 4221.59 4591.36

TOTAL ASSETS
26326.08 25277.94 24595.17 25761.82 35864.51

RATIO (Sales/T.A.)
12.16 13.66 15.26 16.39 12.80

50

ANAND MILK UNION LIMITED

PROPRIETORY RATIO 18 16 PERCENTAGE 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 12.16 13.66 16.39 12.8

15.26

INTERPRETATION
From the above ratio it is clear that Proprietary Ratio for the year 200304 is 12.16%. In 2004-05 it is 13.66%, in 2005-06 it is 15.26%, in 2006-07 it is 16.39% and in 2007-08 it is 12.8%. Out of total Assets the above percentage is invested by Proprietor and it is not better but we can say it is good for any Co-Operative Society.

ANAND MILK UNION LIMITED

51

OTHER RATIOS
In this Ratio we find following types of Ratio Debt Ratio Debtors Asset Ratio

DEBT RATIO:
This Ratio can be found out by dividing Total Debt by Net Asset. Debt = Loans + Debentures + Fixed Deposit Net Asset = Total Assets Current Liability

Debt Ratio =

Total Debt ____________ Net Assets

100

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

TOTAL DEBT
10840.16 11363.16 9716.63 7363.71 15374.95

NET ASSETS
19540.09 16289.38 15063.48 13572.19 11767.44

RATIO (Debt./N.A.)
55.48 69.75 64.50 54.25 130.65

52

ANAND MILK UNION LIMITED

DEBT RATIO 140 120 PERCENTAGE 100 80 60 40 20 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 55.48 69.75 64.5 54.25 130.65

INTERPRETATION
From the above ratio we can say that Debt Ratio in 2003-04 is 55.48%. It was 69.75% in 2004-05, 64.5% in 2005-06, 54.25% in 2006-07 and 130.65% in 2007-08. It is comparatively good, except 2007-08.

ANAND MILK UNION LIMITED

53

TOTAL LIABILITY TO ASSET RATIO

This Ratio can be found out by dividing Total Liability by Total Asset Total Liability = Debentures + Loans + Fixed Deposit + Current Liability Total Liability ____________ Total Assets

Total Liability to Total Assets Ratio =

100

YEAR
2003-04 2004-05 2005-06 2006-07 2007-08

TOTAL LIABILITY
17618.62 19296.36 18608.22 18796.43 28947.46

TOTAL ASSETS
26326.08 25277.94 24595.17 25761.82 35864.51

RATIO (Sales/T.A.)
67.00 76.00 76.00 73.00 81.00

54

ANAND MILK UNION LIMITED

TOTAL LIABILITY TO TOTAL ASSET RATIO

90 80 PERCENTAGE 70 60 50 40 30 20 10 0 2003-04 2004-05 2005-06 YEAR 2006-07 2007-08 67 81 73

76

76

INTERPRETATION
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.

CHALLENGES TO BE MET ANAND MILK UNION LIMITED

55

 Expansion upgrading of plant and equipment to met increasing demanded for quality and quantity with the help of betterqualified 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.

RECOMMENDATION & SUGGESTION

56

ANAND MILK UNION LIMITED

PRODUCTION DEPARTMENT Strengthen the relationship with villagers. As the dairy industry depends on agriculture & veterinary Amul Dairy should have to concentrate on making strong relationship with villagers by providing societal services like health and safety (medical facility) to the farmers, educational facility to their children, insurance facilities etc. Though milk is perishable item durability of milk should be increase by increase in number of chilling centers in all over the Gujarat. HUMAN RESOURCE DEPARTMENT Working system in many departments is obsolescing. So, union has to adopt new operating systems to work like increase in no. of computers in administrative department, salary department etc. So that work can be done speedier and efficiently and newly recruited employees can be motivated.

SUGGESTION
ANAND MILK UNION LIMITED
57

After analyzing the ratio and watching the whole condition business. I would like to give suggestion as bellow.

of

The operating expenses are very high. Such has a raw material,

research & extension, packaging, processing, power & fuel etc. In this expenses raw material consumption is most and company can never controlled. Such expenses. Because Amul is expanding its dairy network year to year. So plant machinery consumption, operation expanses and other expenses will be increase in future. So firm should more focus to increase in sales. Because selling is being increased more and more company can achieve such an expenses. So increasing in the selling of milk products is necessary. Average collection period of Amul is not covered with in credit period, which is granted by firm to its debtor with in month. So firm should try to collect amount from debtors with in month. To purchase milk is most important factor of Amul because firm milk as a raw material which is perishable. So firm should use more and more high speed vehicles like tanker, railways etc for to collect raw-material and arrangement of more calling centers are necessary to protect the raw-material. Because Wastage of milk can effect on the expected production or on the profit also.
Firm should

pay its creditor or societies

with in few times.

Because if payment became late. The credit of company may be affected.

58

ANAND MILK UNION LIMITED

 Since several years Amul is expanding dairy network .So

collection of milk from far maintenance and other cost are

places is very costly and its also may be increased. So

Amul should establish satellite dairies on such a far places. Because such this steps the production and sales will be increased and market of the private competitor will be decreased.
In the globalization world when cutthroat competition is

prevailing in all developed or developing country so to survive in the market, high qualified persons are more necessary for every firm. Due to lack of salary and other. Facilities qualified person cannot stay in the particular firm. So for Amul should take necessary steps for this. Firm should increase extra facility or high salary.
In the marketing field to increase the market of new products.

Firm should use more and more distribution channels like Amul parlor, retailer, and direct selling and media like more advertisement in television, news-paper posters, board and many more.
In the matter of the Amul products market of Amul chocolate is

not very well because its quality is very soft and it melts in very short time in the normal hot. So firm should improve it.

ANAND MILK UNION LIMITED

59

CONCLUSION
The very concept of Kaira Unions system of co-operative dairying was destined to become priceless for millions of farmers. The Kaira District Co-operative Milk Producers Union is the pioneer. And it succeeded. It came to be regarded as a model. The Anand pattern of co-operative dairying is now being replicated in all the states and union territories of India. Amul itself is also growing day by day. In the world of liberalization, globalization and competition in international market, Amul tries best to compete with dairy industry of the world. Union maintains a constant link with rural producers. All the necessary activities related to Animal Husbandry are seriously undertaken to increase the production. Welfare of milk producers is the only aim of Amul. Amuls motto is to give maximum possible returns to milk producers. Various welfare and educational activities are also arranged by the union for the betterment of rural people. This way, Amul is doing a type of social work in our country. It can be seen from above figures that growing rate of Amul has increased over the period of time. Though profit making is not a goal of Amul, its profit is also increasing year by year. This shows the efficiency of production methods. Amul has reached the turnover of 600 crores this year. Profit of this year is 3.10 crores. In comparison to the sales, profit is less because Amul believes in maximum welfare of milk producers. So it gives maximum price to milk producers and charges minimum for cattle feed and other products.
60

ANAND MILK UNION LIMITED

FUTURE CHALLENGES
The future of any institution is a subject, which requires constant attention. The future is perceived as one embroiled with hardship. Hardships may surface in many forms as global demands and changes, foreign affiliations, competition, liberalization, changing values, urban shifting etc. are some of them to name which we foresee and union has to cope with these. In future union should adopt latest technology. Union should not sit with foremost quality of product and co-placement with existing product range but think in a more innovative way. To stay ahead research and development unit has to be strengthened. Union also thinks of price to sustain leading position in the market. Prices will have to remain steady and so union should concentrate on reducing maintenance expenses rather than proposing increasing product price. In comparison with other countries, which are in leading position in dairy industry, the milk-producing animals in our country yield 4 times less milk. Hence, it is the time that union should seriously review enhancement of milk production by adopting better animal husbandry practices.

ANAND MILK UNION LIMITED

61

REFERENCES
Annual Report of Amul. www.amulindia.com www.google.com.

62

ANAND MILK UNION LIMITED