Finance
Finance
Finance
BONAFIDE CERTIFICATE
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF TABLES
LIST OF CHARTS
CHAPTER 1 INTRODUCTION
CHAPTER 1 INTRODUCTION
1.1 Theoretical Background Introduction Accounts receivable management specialists can help in a variety ways: It can cut and maintain your average collection delay. It can lessen your direct and indirect expenses. It can considerably reduce your bad debt. It can tell you various ways to take advantage of your cash-flow. It can help you capitalize on your internal resources. It can maximize your interventions on sales, service and market share.
Receivables Management
Achieving growth in sales and profits: If a firm allows credit sales, it will usually be able to sell more goods or services than if it insists on immediate cash payment. Similarly, an additional sale normally results in higher profits for the firm. This proportion will hold good only when the marginal contribution or gross margin is greater than the additional cost associated with the administering the credit policy.
Credit standards:
The firms credit standards are represented by five Cs of credit Character: Capacity: Capital: Collateral: Condition:
Credit Policy
1. CREDIT TERMS
CONTROL OF RECEIVABLES
ROOM FOR IMPROVEMENT Limitations Tax Considerations Tax has both positive and negative impact on the firms value depending upon the Conclusion COMPANY PROFILE
INDUSTRY PROFILE
CHAPTER 2
Primary Objective
Secondary Objectives
Mode of Collection
Primary Data
Secondary Data
Research Design
Descriptive Research
Debtors Turnover Ratio Debtors Turnover Ratio of OE Customers Debtors Turnover Ratio of Export Customers Debtors Turnover Ratio of Service Customers Debt Collection
Ageing Statement for the year 2008 2009 Total Outstanding OE Customers Service Customers Export Customers Consolidated Ageing Statement Trend Analysis Trend Analysis for Total Sales Trend Analysis for OE Customer Sales Trend analysis service customer sales Trend Analysis for Export Customer Sales Trend Analysis for Debtors Comparative Statement Percentage of bad Debts to sales Percentage of bad Debts to Debtors Operating cycle
2.5 LIMITATIONS
(Rs. In Lakhs) Year Sales Debtors 3382.21 2739.7 2516.15 9645.33 18021.69 36305.08 Sales Debtors Turnover Ratio = (100) Debtors Debtors Turnover Ratio 3.52 5.79 6.8 2.05 1.23
2004-2005 11920.96 2005-2006 15871.08 2006-2007 17140.24 2007-2008 19762.57 2008-2009 22191.8 TOTAL 86886.65 Source: Annual Report
8 7 6 5 4 3 2 1 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 3.52 2.05 1.23 5.79 6.8
Interpretation
The above table shows, Debtors Turnover Ratio seems to be increased upto 2006-2007 and comes to decreased. Sales values has been increased as well as the debtors values were also been increased and vice versa . From the above graph it is clear that in the year 2004 2005 debtors turnover ratio is 7.31 & it has been increased to 6.8 in the year 2006-2007 and comes to decreased in the year 2008 2009.
Trend Analysis
CHAPTER 5 FINDINGS
CHAPTER 5 FINDINGS
CHAPTER 6
CONCLUSION
CHAPTER 6 CONCLUSION
CHAPTER 7
SUGGESTIONS &
RECOMMENDATIONS
CHAPTER 7
BIBLIOGRAPHY
BIBLIOGRAPHY