TITLE PAGE

A STUDY ON RECEIVABLES MANAGEMENT PRACTICES

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

Objectives of maintaining receivables:

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.

Meeting competition: Cost of maintaining receivable

Credit standards:

The firms credit standards are represented by five Cs of credit Character: Capacity: Capital: Collateral: Condition:

Credit Policy

Factors affecting size of receivables:

The size of debtors of a firm is determined by its;

Level of sales Credit terms Collection policies

Requisites for a sound collection policy:

Debt collection period:

Size of accounts receivables:

General trend in accounts receivable:

Goals And Functions Of Accounts Receivable Management

1. CREDIT TERMS

2. OPPORTUNITY COST: 3. RECEIVABLES AT COST OR SALE PRICE:

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 RESEARCH BACKGROUND

CHAPTER 2

2.1 OBJECTIVES OF THE STUDY

Primary Objective

Secondary Objectives

2.2 SCOPE OF THE STUDY

2.3 NEED FOR THE STUDY

2.4 RESEARCH METHODOLOGY

Mode of Collection

Primary Data

Secondary Data

Research Design

Area of the study

Descriptive Research

Tools for analysis

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

CHAPTER 3 REVIEW OF LITERATURE

CHAPTER 3 REVIEW OF LITERATURE

CHAPTER 4 DATA ANALYSIS & INTERPRETATION

CHAPTER 4 DATA ANALYSIS & INTERPRETATION

TABLE 1 Table Shows Debtors Turnover Ratio

(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

CHART 1 CHART Shows Debtors Turnover Ratio

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

SUGGESTIONS & RECOMMENDATIONS

BIBLIOGRAPHY

BIBLIOGRAPHY