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    A Study On Credit Risk Management-1

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    Nikitha Tekula
    This document summarizes a study on credit risk management at LG Electronics. The study has the following objectives: to analyze LG's credit policies, find the impact of changing credit periods on profitability, suggest profitability measures, and assess how credit risk management influences all business areas. The methodology includes collecting financial data from LG's annual reports from 2007-2011. There are some limitations to the study, as it only uses secondary data for a limited time period and relies on the accuracy of financial statement data. In conclusion, the study aims to analyze credit risk management at LG Electronics over several years to improve profitability.

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    A Study On Credit Risk Management-1

    Uploaded by

    Nikitha Tekula
    26 views9 pages
    This document summarizes a study on credit risk management at LG Electronics. The study has the following objectives: to analyze LG's credit policies, find the impact of changing credit periods on profitability, suggest profitability measures, and assess how credit risk management influences all business areas. The methodology includes collecting financial data from LG's annual reports from 2007-2011. There are some limitations to the study, as it only uses secondary data for a limited time period and relies on the accuracy of financial statement data. In conclusion, the study aims to analyze credit risk management at LG Electronics over several years to improve profitability.

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    This document summarizes a study on credit risk management at LG Electronics. The study has the following objectives: to analyze LG's credit policies, find the impact of changing credit periods on profitability, suggest profitability measures, and assess how credit risk management influences all business areas. The methodology includes collecting financial data from LG's annual reports from 2007-2011. There are some limitations to the study, as it only uses secondary data for a limited time period and relies on the accuracy of financial statement data. In conclusion, the study aims to analyze credit risk management at LG Electronics over several years to improve profitability.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    26 views9 pages

    A Study On Credit Risk Management-1

    Uploaded by

    Nikitha Tekula
    This document summarizes a study on credit risk management at LG Electronics. The study has the following objectives: to analyze LG's credit policies, find the impact of changing credit periods on profitability, suggest profitability measures, and assess how credit risk management influences all business areas. The methodology includes collecting financial data from LG's annual reports from 2007-2011. There are some limitations to the study, as it only uses secondary data for a limited time period and relies on the accuracy of financial statement data. In conclusion, the study aims to analyze credit risk management at LG Electronics over several years to improve profitability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    A STUDY ON CREDIT RISK

    MANAGEMENT
    AT
    LG ELECTRONICS
    NAME : Sai Maithreyee
    Roll No : 21k91e0059
    MBA 2nd year
    Introduction:

    • Trade credit arises when a firm sells in products or services on Credit and does
    not receive cash immediately.
    • . A firm grants trade credit to protect is sales form the competitors and to attract
    the potential customers to by its products at favorable terms.
    • Trade creates ―Accounts receivable or trade debtors‖ that the firm is expected
    to in the near futures.
    A credit sale has characteristics:

    • Cash sales are totally less, but not the credit sales as the cash sales as the cash
    payment are yet too received.
    • Received by him in future period. Debtors constituted a substantial portion of
    customer assets several firms.
    • They from 1/3rd of current assets in India. Granting credit and creating Dr’s
    amount to the blocking of the firms founds.
    • Thus trade debtors represent investment as substantial amount are tide-up in
    trade debtors it needs careful analysis and proper management.
    Need and importance of the study:

    • Credit Risk management is one of the key areas of financial decision-making.


    • The goal of Credit Risk management is to manage the firm current assets and
    current liabilities.
    • If the firm cannot maintain a satisfactory level of working capital, it is likely to
    become insolvent and may be even forced into bankruptcy.
    Scope of the study:

    • The scope of the study is limited to collecting financial data published in the
    annual reports of the company every year.
    • The scope of the study limited to collecting the data published in the reports of
    the company and opinions of the employees of the organization with reference to
    the objective stated above and theoretical framework of the data.
    • The analysis is done to suggest the possible solutions.
    • The study is carried out for 4 years (2007-11).
    Objectives of the Study:

    • To analyze the credit policies of Lg

    • To find out profitability of increasing or decreasing the credit period.

    • To suggest measures to increase profitability.

    • How all areas of business are influenced by Credit Risk Management? 

    • To Assess the long term requirements of funds of the Lgs.

    • To evaluate long term investment decisions of Lgs.


    Research Methodology:

    • The data used for analysis and interpretation have been taken from annual
    reports and websites of the company.
    • The crux of capital budgeting is the allocation of available resources to various
    proposals.
    • There are many considerations, economic as well as non-economic, which
    influence the capital budgeting decision in the profitability of the prospective
    investment.
     
    Limitations:
     

    • The study is based on only secondary data.


    • The period of study was 2007-11 financial years only.

    The accuracy and correctness of ratios are totally dependent upon the
    reliability of the data contained in financial statements on the basis of which ratios
    are calculated.
    THANK YOU

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