23-09-2014, 10:36 AM
RECEIVABLES
MANAGEMENT
RECEIVABLES.docx (Size: 40.31 KB / Downloads: 22)
INTRODUCTION
Management of trade credit is commonly known as management of receivables. Receivables are one of the three primary components of working capital, the other being inventory and cash. Receivables occupy second important place after inventories and thereby constitute a substantial portion of current assets in several firms. The capital invested in receivables is almost of the same amount as that invested in cash and inventories. Receivables thus, from about one third of current assets in India. Trade credit is an important market tool. As, it acts like a bridge for mobilization of goods from production to distribution stages in the field of marketing. Receivables provide protection to sales competitions. It acts no less than a magnet in attracting potential customers to buy the product at terms and conditions favorable to them as well as to the firm. Receivables management demands due consideration not financial executive not only because cost and risk are associated with this investment but also for the reason that each rupee can contribute to firm’s net worth.
MEANING AND DEFINITION:
Receivables can be defined as “Debt owed to the firm by customers arising from sale of goods or services in ordinary course of business”.
In other words, sale of goods on credit converts finished goods of a selling firm into receivables or book debts, on their maturity these receivables are realized and cash is generated.
According to Robert N Anthony,“ Accounts receivables are amount owed to the business enterprise, usually by its customers. Sometimes it is broken down into trade accounts receivables; the former refers to amounts owed by customers, and the latter refers to amounts owed by employees and others”.
According to Peasant Chandra, “The balance in the receivables accounts would be; average daily credit sales x average collection period”.
SCOPE OF THE STUDY
This study is based on information of receivable management in Confident Sales India pvt Ltd. The scope of the study is that it gives useful information about the actual collection period, discount rate provided by the organization.
MISSION
To be the frontrunner in providing dental and medical equipment and services by focusing on quality, productivity and cost effectiveness and by creating an ethos that encourages team spirit and where each individual’s contribution is recognized and valued.
VISSION
To provide quality dental and medical equipment to healthcare industry, and to have a global presence. Achieving customer satisfaction by adopting a system founded on business ethics, values and the philosophy of quality from concept to actualization.
INFRASTRUCTURE FACILITY
In confident Sales India Pvt Ltd., Human resources is an important infrastructure facility and it has been taking many steps over the years for the development of human resources and has made the same as one its valuable assets
FUTURE GROWTH AND PROSPECTS
A huge plant has been built in BIDADI INDUSTRIAL ESTATE to increase the efficiency and productivity of the products.
Increase health and beauty conscious of people have given a great room for the development of dental equipment and medical industries in larger scale