ACCOUNT RECEIVABLE MANAGEMENT
REPORT
ON
ACCOUNT RECEIVABLE MANAGEMENT
TATA STEEL
Prepared by www.AssignmentPoint.com Date: 21-05-202
EXECUTIVE SUMMARY
The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management.
Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers.
Till few years back, Tata Steel had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, Tata Steel could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding amount on the due date.
CONTENTS
PAGE NO.
COMPANY PROFILE
02
TREND OF SALES
03
TREND OF DEBTORS
04
DIVISION/PROFIT CENTRE WISE DEBTORS IN TATA STEEL FOR FY 07-08
05
TRENDS OF DEBTORS IN TATA STEEL
06
CREDIT POLICY OF TATA STEEL
07
CREDIT TERMS OF TATA STEEL
07-08
TATA STEEL’S CREDIT MONITORING AND CONTROL
08-10
OPERATIONAL WORKING AT TATA STEEL FOR MANAGING DEBTORS
11-12
UNDERSTANDING THE DEBTOR’S PROCESS SYSTEM
13
PROJECT ACTIVITY CHART
14
CREDIT ASSESSMENT POLICY
15-16
INTRODUCTION
Accounts
ON
ACCOUNT RECEIVABLE MANAGEMENT
TATA STEEL
Prepared by www.AssignmentPoint.com Date: 21-05-202
EXECUTIVE SUMMARY
The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management.
Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers.
Till few years back, Tata Steel had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, Tata Steel could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding amount on the due date.
CONTENTS
PAGE NO.
COMPANY PROFILE
02
TREND OF SALES
03
TREND OF DEBTORS
04
DIVISION/PROFIT CENTRE WISE DEBTORS IN TATA STEEL FOR FY 07-08
05
TRENDS OF DEBTORS IN TATA STEEL
06
CREDIT POLICY OF TATA STEEL
07
CREDIT TERMS OF TATA STEEL
07-08
TATA STEEL’S CREDIT MONITORING AND CONTROL
08-10
OPERATIONAL WORKING AT TATA STEEL FOR MANAGING DEBTORS
11-12
UNDERSTANDING THE DEBTOR’S PROCESS SYSTEM
13
PROJECT ACTIVITY CHART
14
CREDIT ASSESSMENT POLICY
15-16
INTRODUCTION
Accounts