A Study On Investment Behaviour Towards Saving With Special Reference To Sbi Bank, Bangalore"

A study on Receivable Management.
1.1 INTRODUCTION ABOUT THE INTERNSHIP:
Internship program is necessary for MBA students. So, that they can get a theoretical and
practical internship has been prepared for the partial fulfilment of MBA programme
affiliated under Visvesvaraya Technological University, Belgaum.
The internship program is a platform where students can come out of their theoretical and
practical information and know the real working condition. It gives a better insight about
the operation of an organization. The internship program enhances the student’s
interpersonal skills and knowledge about the subject matter.
The internship for the period for ten weeks which was all learning about the receivables
that are incurred while the sales are made on the credit basis. This project work was
facilitated by Associate of Hydro pressing Private Limited, K.R.Puram, Bangalore which
provided me a platform to learn by the way of internship
The report has been prepared on the observation, collective knowledge and as an intern
during the period of internship.
TITLE OF THE STUDY. “A study on RECEVIABLES MANAGEMENT at Associate

Hydro Pressing Private Limited”
1.2 INTRODUCTION ABOUT STUDY.
Credit arises when a firm sells in products or services on credit and does not receive cash
immediately. It is an essential marketing tool, acting for the snippet of merchandise
through creation and conveyance stages to clients. A firm grants trade credit to protect in
sales from the competitors and to attract the potential customers to buy its products at
favourable terms. Trade Creates accounts receivables or trade debtors that the firm is
expected to in the near future. The customers from whom receivables or book charges
must be gathered later on is called Trade indebted individuals or basically as borrowers
and speaks to the firm resource.
BTL Institute Of Technology Page 1

1.3 NEED FOR THE STUDY:
The goal of receivable management / credit risk organization is to direct the certain in
progress resources and in progress liability in a manner is tasteful level of operational
capital kept firm can't keep up an gorgeous level of functioning capital is likely to become
insolvent be even enforced into bankruptcy. Receivable management is an important
success of funds for the organization so; the study is done to know the following:
 Does the receivable management of the Associate of Hydro Pressing Private

Limited is satisfactory?
 Is the credit policy of Associate of Hydro Pressing Private Limited adequate?
 Are there any reason for the raising the bad debt?
 Credit standard of the company and debtor are matching?
1.4 OBJECTIVES OF THE STUDY:
 To know the structure, growth and financial viability and receivable management activities
of Associate of Hydro Pressing Private Limited.
 To understand the present receivable management system in the AHPP.
 To evaluate existing procedure of receivable management in the company.
 To access the credit policies of receivable management followed by selected company
towards receivable management.
 To access the impact of receivable management and to measure the qualitative and
quantitative approach.
1.5 STATMENT OF THE PROBLEM
Acknowledge gifts as advertising apparatuses are planned to advance deals and in this manner
benefits. Be that as it may, augmentation of credit includes hazard and expenses. The customers
who buy on credit may be risky to pay on due date and granter incurred different kinds of costs
such as, collection costs, capital cost and debt expenses. So, that costs should be analyzed with
profits. It is effective and careful analysis of credit management. It implies that there is lack of
understanding the correct procedure for organization of receivables of the organization.

1.6 SCOPE OF THE STUDY.
The consequences of this study gave perception and data to chairmen, professionals, and
specialists about receivables administration in the obligation gathering field. The extent of the
study is constrained to gathering money related information distributed in the Annual reports of
the organization consistently and conclusions of the workers of the association with reference to
the target expressed above and hypothetical structure of the information. With a perspective to
recommend answers for different issues identifying with credit hazard administration. The
investigation is done to recommend the conceivable arrangements.
1.7 RESEARCH METHODOLOGY:
The information during the analysis has taken from the financial statements and company
homepage and journal of the company.
FINANCIAL FORMULAS
The following formulas used to calculate the following which are shown below
 Debtor Turnover Ratio= Total Sales / Total Debtors.

 Accounting collection period= 360/ Debtors.
 Inventory turnover Ratio= Inventory / Net Sales.
 Receivables to Sales= Receivables / Sales *100
 Working capital turnover Ratio= Net sales / working capital
STATISTICAL TOOLS.
Analysis of Variance (ANOVA):
According to Prof R.A Fisher, Analysis of variance (ANOVA) is the “parting of discrepancy
ascribable to one group cause from the inconsistency ascribable to the other group”.
Null Hypothesis: H0: If we want to test accounts receivable have a significant difference on the
sales of AHPP that is homogeneity of different ratios.
H0 = µ1=µ2.

Alternative Hypothesis: If we want to test Accounts receivables have no significant difference on

the sales of AHPP that is no homogeneity of different ratio.
H1= µ1≠µ2.
Regression analysis: It is one of the very scientific techniques for making prediction.
According to M.M. Blair “Regression analysis is a mathematical measure of the average

relationship between two or more variables in terms of the original units of data”In regression
analysis there are two variable.
1. Dependent variable and

2. Independent variables.
Dependent variable: The variable whose value is influenced or is to be predicted is called
dependent variable.
Independent variable: The value which is influences the value or is used for predication is called
independent variable.
Equation of line of regression on y on x
b
Y- Ý = yx (x x́ )
Equation of line of regression on x on y
b
x- x́ = yx (Y- Ý )
1.9 RESEARCH DESIGN:
Methodology is nothing but a plan or strategy of the investigation process that sets out to obtain
solution to study. The quality of the project work depends on the methodology adopted for the
study. Methodology in turn depends on nature of the project work. The use of methodology is an
essential part of any research. Keeping in mind the end goal to direct the concentrate logically
suitable strategies and measures are to be taken after.
Research type
Descriptive research
A descriptive research that describes the characteristics and nature of problem existing with firm
which analysis the facts and figures associated with the nature of problem, deals with the past
performance of the “Associated Hydro Pressing Private Limited”

Data Sources
The data source can be classified in to two categories:
 Primary Data
 Secondary Data
Sources of Secondary Data:
 Published reports
 Company Manuals
 Reports and journal
 Departmental reports
Restrictions:
 The revise was conducted only on secondary data

 Exactness and accuracy proportions are completely relied on the unwavering quality of the
information contained in monetary articulation on the premise of which proportions are
figured.
 The exactness and truth of studies are completely depends up on the consistency of data in
financial statement conclusion is survived.
 The validity of data is applicable for the following financial year’s i.e. 2011 to 2015.
1.10 Review of literature:
According to Knouts, Eleonora,(2015) and yet, Management of records Receivables in an

organization, Ekonomska Misaoi Praksa, Accounts receivables cash owed to an organization as
a consequence of having sold its items to clients using a loan. The essential organization's interest
in records the business, aggregate deals alongside the organization's credit and the gathering
strategies. The reason for this study was to decide methods for finding an ideal records receivables
level alongside making ideal utilization of various credit approaches keeping in mind the end goal
to accomplish a most extreme return at an adequate level of danger.
According to Paul, Salim Y,(2013) and yet, sorting out the credit administration capacity,
credit management,26-28,30-31 In the event that records receivables constitute one of the
greatest yet most hazardous resources the organization is prone to have, one would anticipate that
uncommon consideration will be given to its administration. The way the credit capacity is
composed affects credit administration to fit into the methodology. It is generally acknowledged
administration writing that variables,

According to Stevenson, Paul,(2005) and yet, Credit administration strategy, credit

administration
The capacity administration gainful deals, money related danger and the effective accumulation of
offers salary inside of a structure of client consideration. The essential targets of the credit
administration include:
 Ensure that monthly cash collection targets are achieved.

 Maintain a high quality of account receivables.
According to Sims ( 2003) and yet , to depending records receivables as a reimbursement

sources, The diary of loaning and credit Risk Management
Accounts receivables can speaks to an extremely stable reimbursements sources since they will
commonly change over to money quicker than whatever other resources on the asset report. For
the same reason, accounts receivables likewise can speak to extra dangers.
CHAPTER-2
2.2 INDUSTRY PROFILE
Industry Overview
The ubiquity of profound drawn parts and squeeze segments lies in the staggering
adaptability for outline and creation. Profound drawn segments and squeeze segments are one
of the essential and most basic uses in the business. One of the primary points of interest that
exactness case gatherings have is its adaptability.

Profound drawing is a sheet metal cultivating process in which a sheet metal clear is
fundamentally drawn into a framing kick the bucket by the mechanical activity of a punch. It
is hence a shape change process with material maintenance. The procedure is viewed as
"profound" drawing when the profundity of the drawn part surpasses its distance across.
Profound drawing assembling is an innovation that includes the extending of sheet metal
stock. The edges of the sheet metal are limited by rings and the attachment is profound drawn
into a top kick the bucket pit to accomplish the sought end shape. There are different shapes
that can be made through profound drawing and stamping including glasses, skillet, barrels,
arches and sides of the equator, and in addition unpredictable formed items.
The capacity to fabricate parts that have generally been made by different procedures, for
example, turning, throwing or get together offers numerous advantages to the planner
The things that can be produced utilizing profound draw squeezing ranges from little catheter
holders to vast walled in areas.
Numerous profound squeezing widely recognized stainless steel, aluminium, metal, copper
and icy moved steel. The main genuine prerequisite is that the metals must be flexible,
permitting the part to be constrained into a shape without torment from extreme anxiety harm
bringing about breaks amid the profound drawn procedure.
The profound drawing press pushes material from a reel, or single spaces, through different
positions. At every position the shape is changed by squeezing or "drawing" the material
further down into a dynamically changing arrangement of geometric passes on until the last
shape is obtained.
Whether the procedure requires a solitary draw operation, or different attracted operations to
make the fancied coming about structure, to a great extent relies on upon the metal being
utilized and the prerequisites of the completed item.
The part design is restricted by the obliged power to create the shape, which is subject to the
span of the drawing press, the material's mouldable qualities and its capacity to be drawn.
Where vast volumes are included, profound draw squeezing is a greatly financially savvy
process. This is on the grounds that once the passes on have been introduced on the profound
the procedure is totally built profound segments more than 70 per cent decreases unit price
tag when contrasted with procedure perfect for high volume and low retail value things.
The profound draw squeezing prepare first includes making a progression of geometric
passes on. These are introduced on the profound draw press. A clear metal part is then gone,
being squeezed into every pass on thus. Toward the end of the procedure, the last shape is
accomplished. Common creation rate is 60 sections a moment. The procedure can be
rehashed if an especially confused shape is required.
Dynamic kick the bucket squeezing, now and then known as stamping is a comparative
procedure, yet one that is just equipped for delivering generally shallow parts. The movement
squeezing procedure is fundamentally the same to that of profound draw squeezing, with the
exemption that rather than spaces being sustained into the machine, slender sheet metal is
utilized. Common creation speed for movement squeezing is 250 sections a moment. Dayton
Rogers, a secretly held organization, started as a supplier of exactness profound drawn parts
and squeeze segments in 1929. Today there are Full Service suppliers of profound drawn
segments and squeeze segments framed items. For the most part, there are two classifications
of plant hardware: Standardized and Customized. Institutionalized apparatus regularly found
in the paper, transportation, synthetic, mining, or air ship commercial ventures incorporates
hardware, for example, bundling lines, plastic trim gear, and machines utilized for punching,
stamping, or twisting metal. Modified hardware takes more time to construct, is more costly,
and is more gainful than institutionalized gear.
Consumptions on apparatus and devices, (capital spending) educates a great deal regarding
the future course of the entire economy. Such creation hardware from confused modern
apparatus to little hand devices is utilized as a part of verging on each business, from
sustenance preparing to car fabricating. At the point when organizations set up, grow, or
overhaul their creation offices, it's typically uplifting news for both the business and the
economy.
The business primarily spends significant time in accuracy metal framing arrangements
including metal press parts, metal manufacture, building support, mechanical congregations,
dynamic, exchange, compound, and profound drawn press segments. The brilliant metal press

parts are fabricated in present day offices to client determination with ISO and testing
affirmations.
Driving hardware and gear creators incorporate Illinois Tool Works (ITW), Eaton Corp,
Sandvik, Kennametal, and Dover Corporation. Surely understood toolmakers incorporate
Stanley Works, Snap-on, and Black and Decker. Their items incorporate machine
apparatuses, robotized machine instruments, hand devices, exactness devices and
expendables. A portion of the techniques are:
Metal Spinning: turning is a strategy for framing Deep drawn segments or tubing into
consistent empty barrels, cones, halves of the globe or other round shapes by a blend of pivot
and drive.
Mechanical Magnetics: pick n put profound attracted segments parts computerized exchange
or automated applications with this new era of tooling innovation. Perfect for exchanging or
de-stacking steel sheets, spaces, press segments and parts in assortment of robotized
applications.
Hydro framing: the hydro shaping procedure is regularly a reasonable arrangement in cost
touchy, low volume creation and when profound drawn segment parts with unpredictable
forms are required. These sorts of commercial ventures are supplying the little segments to
the Automobile and Electrical industry.
2.2 COMPANY PROFILE
Associated Hydro Pressings Private Limited, an ISO/TS 16949:2002 business is an reputable

in the fields machinery. AHP, foremost manufacturers of exactitude Pressed workings,
focused in drawn parts, case assemblies used in the motor Sector, Electro emotionless sub-
assemblies and Electrical Assemblies Sector.
Mr SILVIAN NORONHA, MD, who has vast practice in the field of Press Tools and hard-
pressed Components for more than two and half decades. The company have best team to
propel the taken as a whole running of the company for the on the whole which is located in

main part of the city at Old Madras Road, which is well connected to National Highway,
Railway and Airport.
The company is having are fully prepared with different press ranging from 10 to 250 tons -
power/ pneumatic/ hydraulic presses and with updated design and tool scope hold and an
qualified inspection subdivision.
Business Type: Supplier Manufacturer
Industry: Industrial component and parts
Background and inception of the company
AHPP is sole proprietorship firm are capable of supplying our products as per the
requirements of our clients and well within the schedules of delivery. The company also
ensure that can satisfy our client and our superior level without any errors. In addition to this,
company have a moral business policy, quality centric approaches had made us one of the
reputed name among our clients spread across the worldwide markets. Our expert
professionals supervise the final products and certify for market showcase.
Nature of the business carried on by Hydro pressings Ltd.
AHPP company has introduced many different automotive and electrical parts like Speedo
meters, ammeters -various cases assemblies, front rings, cases etc, strengthening our nonstop
service preposition.
2.3 Vision, Mission and Quality policy
Vision
AHPP is excited about promising and challenging future prospects. Therefore AHPP
continues to invest in sharpening skills and processes for partnering with deserve customers
in the journey towards business excellence. As they can operate in dynamic business
environment characterized by rapid change & response so they look forward to future filled

with challenges, hope and optimism. The company’s is to graduate to a dedicated, loyal and
world class suppliers in the ensuring periods.
Mission
AHP's mission is to be rated as an enviable company in the country within the next few years.
"THE FOCUS SHALL BE ON DELIVERING WHAT CUSTOMER'S BUSINESS
DEMANDS"
Quality policy
AHP will provide quality products as mutually agreed since “Quality First Is Our Policy”
this will be achieved through continuous improvement of effectiveness of Quality
Management System and by reviewing the quality objectives periodically. Our adherence to
international quality standards and our efforts to heave the eminence of our products has
resulted in making us dexterous in manufacturing and supplying high quality range of
pressed components for Automotive and electrical Sectors.
2.5 ACHIEVEMENTS & RECOGNITION
Associate Hydro Pressing Private Limited (AHPP) has achieved many milestone throughout last
few years due to devoted aware efforts towards excellence and consistency in developed process.
Years Achievements and Recognition

2006 by TUV NORD, Germany. As step to the front in value systems, the
business is certified 16949:2002
th
2001 on 16 November at New Delhi Honoured the UdyogPatra Award as a
at National Economic Development nature complete entrepreneur which was
conference. presented by the Union minister of HRD
1999 was awarded ISO 9001 for Quality Technical superiority and patron satisfaction
system by RWTUV and recognized the paramount for quality
check
1998 by Bharathiya Ekta Parishad award The awarded for, dedicated and self
confidence successfully organization of
industrial unit.
2.6 Product/Service profile

Auto Components
The company is eminent Manufacturer and Supplier of Pressed Components. The offered
products are manufactured using the best grade raw material as per international quality
standard. These products are high in demand among our clients due to their reliable
performance, durability and longer service life.
Pressed Components
The company provides the best range of Pressed Components such as Automotive Parts and
Pressed Components and Electrical components with effective & timely delivery.
Automotive Parts
Automotive parts used in instruments are speedo meters, ammetersetc.-various cases
assemblies, front rings, customised automotive parts tank unit covers, bracket supports, cover
magnets, cup drags, customised automotive parts, flange assemblies, case assemblies, inner
rings and outer rings etc. made out of steel, stainless steel and brass, Automotive parts-
various flange assemblies for small trucks,Automotive parts flange assemblies for big trucks.
Pressed Components For Electrical

1. Pressed components for electrical tag and cap assemblies/end fitting for various types of
fuses.
2. Pressed components for electrical tag and various tag and caps assemblies/end fittings
made out of copper and brass.
Automotive Dashboard and Fuel Tank Parts
Our product range includes a wide range of Automotive Dashboard and Fuel Tank Parts such
as Cover Magnet, Flange, GMT 560 Flange, Assembly Case, Odoframe, Clamp and many
more items.
Cap Assembly Parts
We are a leading Supplier & Manufacturer of Cap Assembly Parts such as Armature Plate,
Outer Cap, Tags, Inner Cap, Yoke & Core Assembly and Mounting Plates from India.

Fuel Flange Assembly
Our range of products includes Fuel Flange Assembly such as Flange 560 GMT, Flange
900ssb and GMT 560 Flange.
The various product sectors of AHP includes:
 Automotive Sector
 Electrical Sector
 Export Items
Product Image
Automotive Sector Electrical Sector Export Items

Cups and Ring Caps and tin plates Metal Flange sheets
Cases, Brackets Mounting plates
Flange Yoke and Core
Clamps and caps Armature Plates
2.7 Areas of Operation
Today our company serve nearly more than 18 major cities in India such as, Pondicherry,
Faridabad, Bangalore, Pune, Chennai, Mansard, Uttaranchal, Coimbatore with more than 18
branches throughout India.

 Production & Manufacturing: AHP has a mixture of presses ranging from 10 ton to
250 ton facility (Hydraulic / Mechanical / Pneumatic) shear machine, shelf welding
machine, speck welding , hand press, lathe, revetting machines, tapping machines
Soldering Units.
Power presses range from 30 ton to 300 on aptitude
(hydraulic/mechanical/pneumatic)
1. mark & twig weld machine

2. Lathe
3. Riveting equipment
4. Water leak testing machine.
 Instrument space: newest propose device manufacturing feature.
1. Lathe
2. Surface grinder
3. Milling machine
4. Radial drilling
5. Die filing machine
6. Band saw cutting
7. Cylindrical grinding
 Testing &Inspection: Fully equipped with Latest Testing Instruments.
1. Digital veriner calipers
2. Dial gauge/stand
3. Illuminated magnifier
4. Radius gauge
5. Digital bore gauge

6. Digital height gauge
2.9 Competitors Information
1. CRISMO INDUSTRY,
Name: Crimson Interactive Pvt. Ltd.

Representative
Shared Mittal, CEO
:
Business Language Editing, English
Lines: Transcription, Translation
Researchers, Universities,
Clients: Teachers, Translation Companies,
International Conference
2. V.M PRESS COMPONENTS.
Name V M Press Component, established in the year 1994 Bangalore

Business line Manufacturing unit press components and wiring harness, sister company
in the name of V.M. Enterprise.
Clients Researchers, universities, companies etc.
3. THERMO INDUSTRY:
Name Thermo Industry multinational company created in the year 2006.
Business Genetic testing and precision laboratory equipments.

line
Clients Universities, Researchers, Teachers.
2.10 SWOT ANALYSIS
Strengths
 Quality policy is good
 Engaged in export business

 Brand equity commands good amount of respect
 Infrastructure and man power is good
 Less competition among deep drown manufacturing industries
Weakness
 Few competitors, but more competition
 Intense competition for reduction in prices
 Existing supply capacity is more than the demand
Opportunities
 As competitors are less, it can expand its business in various places
 Development of new tools and products
 More export opportunities
Threats
 Availability of skilled labour
 Clients producing products on their own, which makes the loss of customers
 Market demand is one of the threat to the organisation
 There is a threat from the new entrants
2.11 FUTURE GROWTH AND PROSPECTS
 During March 2015 year the company has achieved the turnover of Rs. 582.20 Lakhs
(Gross) and the company is hoping to achieve a turnover of Rs.1250.00 Lakhs for the current
financial year ending March 2016
 Even in exports the company has achieved 25.66 Lac. The business is hoping
turnover in coming financial year March 2016.

 In line with the increase in sales, the company has made the projections as follows:
 To meet the above target, company has strengthened the fleet of machineries and
required man power.
 Again, with regard to export turnover we have diversified our product line and
expect such increase from new customers.
 We have already appointed a full-fledged Quality team who can take care of all the
quality aspects as per requirements.
 As the company has good reputation with all the financial institutions, there is no
problem for project financing.
 In a nutshell, AHP has a vital role to play in the global market in the days to come.
2.12 Organisational Structure:
BOARD OF DIRECTORS
MANAGING DIRECTOR
DIRECTOR OPERATIONS

TECHNICAL QUALITY COMMERCIAL

ASSURANCE GROUP GROUP
GROUP
GENERAL MANAGER
ADMINISTRATION
Sr. MANAGER ACCOUNTS & HUMAN

MANUFACTURING / MANAGER Q.A. RESOURCES
TOOL ROOM
EXECUTIVE
ENGINEERS
EXECUTIVE
EXECUTIVE ENGINEERS Jr. EXECUTIVES
ENGINEERS ACCOUNTS
PRESS OPERATORS
Chapter 3
THEORETICAL BACKGROUND OF THE STUDY
3.1 RECEIVABLE MANAGEMENT:
Funding in receivable is crucial to develop the earnings and gains of a corporation.

Receivables are often referred to as account receivable, trade receivable and book debts, the

interval of credit and extent of receivable will depend on the credit score policy adopted
through th type. The rationale of upholding or investing in receivables is to satisfy
competitions and to broaden the income and revenue.
The term receivable administration is also defined as assortment of steps and process required
to properly weigh the price and advantage hooked up with the credit score insurance policies.
3.3 OBJECTIVES OF RECEIVABLE MANAGEMENT:
 Increasing benefits as a consequence of expansion in deals in volume, as well as on

the grounds that organizations charge a higher edge of benefit using a credit card
deals when contrasted with money deals.
 In request to meet expanding rivalry, the organization might need to give preferable
credit offices over those offered by its rivals
3.4 IMPORTANCE OF RECEIVABLE MANAGEMENT:
 Liberalised credit score coverage helps to develop the growth of revenue.

 Credit score policy helps to fulfil the competition
 It allows enough working capital to fulfil present tasks.
 It helps to minimise bad debts without taking stringent measures.
 It helps to make amazing co-ordination between finance, creation, earnings and profit.
3.5 FACTORS DISTRESSING THE DIMENSION OF RECEIVABLES:
The dimension of receivables depends on quantity of explanations for being a most

important aspect of present assets. According to the character and kind of industry. The level
of receivable is presented through diagram in determine given under and are discuses
beneath:
Credit Sales Terms of Sales Stability of sale
Determinants of
Credit policy investment in
Receivables
Miscellaneous
Credit period
Bills discounted and

Cash discount Collection Policy Collection collected endorsed
1. Immovability of Sales:- Balance of earnings refers back to the factors of permanence and
reliability within the income. In different phrases the travelling nature of sales violate the link
of revenue in between the year.
2. Conditions of Sale: A resolved may just have an effect on its sales both on money basis or
credit origin. In reality credit score is the soul of a trade. It additionally results in larger profit
level by means of enlargement of income.
3. The Quantity Credit Sales: It theatre the major position in decision extent of receivables.
As of alternate remains roughly just like many of the industries. So, a company coping with a
high stage of revenue may have gigantic receivables
4. Credit Policy:
 A tolerant arrangement prompts more prominent defaults in instalments by monetarily

feeble clients bringing about greater volume of receivables
 A tolerant credit arrangement energizes the monetarily stable clients to postpone
instalments again bringing about the expansion in the span of receivables
5. Cash Discount: capital reduction attracts consumers for payments before the lapse of
credit score interval. As a tempting offer of lesser repayments is proposed to the patron in this
approach.. Then again reduces the working capital standards of the main issue.
6. Miscellaneous: There are precise common causes similar to fee level editions, perspective
of running style and nature of industry, availability of cash and the lies that play radically
essential position in decisive.

3.6 GUIDELINES FOR EFFECTIVE RECEIVABLE MANAGEMENT:
1. Establish clear credit score practices as a subject of organization policy.
2. Bill speedily and clear
3. Don't forget charging penalties on late debts
4. Take into account accepting credit/debit playing cards as a cost alternative.
5. Be authentic when accepting new bills and particularly significant ones.
6. Continually evaluate these limits when you suspect difficult instances are coming or if
working in unstable sector be certain that the apply is naturally understood through
employees, suppliers and purchasers.
7. Have a correct psychological angle to the manipulate of credit score and be certain that it
will get the priority it deserves.
3.7 PURPOSE OF MAINTAINING RECEIVABLES:
Flow chart showing the

Start
Purpose
of Maintaining Receivables.
Credit Sales
Marketing
Receivables
Retaining present Attracting potential Quick distribution Potential to face

customers creditors of goods competitions

Expansion of sales
Higher profit level
More Liquidity Stop
3.8 Dimensions of receivable management
Credit Policy
Credit Analysis
Control of Accounts Receivables
A firm will need to increase its accumulation endeavours in order to gather the remarkable
bills particularly in the event of clients who are monetarily less solid. It incorporates extra
costs of credit division brought about on the creation and support of staff, bookkeeping
records, stationary, postage and other related things
An unwinding in a credit standard is as of now expressed infers an expansion in deals which

assistant would prompt the higher record receivable.
(A) Credit period and
(B) Cash discount terms
Collection policy
It alludes to the systems embraced by a firm (loan boss) gather the measure of from its
indebted individuals when such sum gets to be expected after the expiry of credit period. "An
accumulation approach ought to dependably accentuate expeditiousness, controlling and

systematization in gathering endeavours. It will have a mental impact upon the clients, in
that; it will make them understand the commitment of the dealer towards the commitments
allowed. An accumulation approach might be detailed with an entire and sole point of
ensuring so as to quicken gathering from awful obligation misfortunes brief and general
accumulations. Credit strategy of an endeavour might be investigated and assessed
occasionally.
Degree of effort to collect the overdue:
To show the effects of collection efforts. The collection policy of a firm may be classified
into
1. Strict Policy: It is the accumulation which includes more endeavours on

accumulations, for example, an approach has both positive and negative impacts. This
strategy will be empower early accumulations of due and will diminish the awful
obligation misfortunes
2. Lenient Policy: An indulgent approach might expand the obligation accumulation
period and all the more terrible obligation misfortunes. The accumulation approach
ought to weigh different viewpoint connected with it, the addition and misfortunes of
such arrangement and it impact on money of the worry. The impact of the merciful
strategy will be only inverse of strict arrangement
Basis of Trade off From Tight Collection Efforts

Item Direction Changes Effects on Profits (Positive +,
(Increase=I, Decline=D) Negative -)
Bad debt expenses D +
Average collection period D +
Sale volume D -
Collection Expenditure I -
Types of collection effort:
The second part of accumulation strategies identifies with the strides that ought to be taken to
gather over due from the organization. A settled accumulations strategy ought to have an
obvious rules as to request of gathering endeavours. The endeavours ought to be first and

foremost be courteous, yet with the progression of time, it ought to bit by bit get to be strict.
The stride typically taken are
 Letters, including reminder call

 Telephone call for personal contact
 Personal visits
 Help of collection agencies
 Finally legal actions.
Credit evaluation
Auidited monetary explanation expansive organization may be dissected when it issues

bonds, or a bank might examine the money related proclamation of a little business before
making or restoring a business credit. alludes to other vast or little.
examination includes assortment monetary investigation method, including proportions and

pattern examination and also the production of projections and a point of interest
investigation of money streams. Credit investigation likewise incorporates an examination of
security and different wellsprings of reimbursement and additionally the record as a
consumer and administration capacity.
Before affirming the business advance, a bank will take a gander at this variables with the
essential accentuation being the income of the borrower. A typical estimation of
reimbursement capacity is the obligation administration scope proportion.
The obligation administration scope proportion separates the sum obligation administration
(guideline instalments credits). Most likely, credit investigation includes cost. In this way, it
might be directed according to the prerequisite of the circumstances. However, the actuality
can't be overlooked that a credit choices taken without sufficient and legitimate examination t
safe cost related which such examination demonstrates substantially more unreasonable
because of the terrible obligations unnecessary gathering of expense.
Next to setting up credit models a firm ought to create system for assessing credit candidates.
The credit assessment technique include 3 related steps
a) Obtaining information on the applicant

b) Analyzing the credit information
c) Credit granting decision.

Assess
Risk
Measure Evaluate
Management
Manage
a) Obtaining information on the applicant:
The initial phase in the credit examination is getting the credit data on which charge base the
assessment of an establishment/clients/account holders
The firm stretching out credit might need to fulfil with a constrained measure of data on
which to base choice. The measure of data gathered should be considered in connection to the
time and territory required. Contingent upon these contemplations, the credit investigator
might utilize one or a greater amount of the accompanying wellsprings of data.
 Internal: Firm more often than not, require their thought to fill different structures
and archives giving insights about money related operations. They likewise required
to outfit exchange reference with whom the firm can have the contacts to judge the
suitability of indebted individuals for credit. This sort of data is gotten thinking about
an augmentation of credit.
 External:. Accessibility of data outside survey the of indebted individuals relies on
the improvement of institutional offices and industry rehearses. Contingent on the
accessibility, the accompanying outside sources might be utilized to gather data
o Financial information’s.
o Bank references
o Trade references
o Credit bureau reports.

b) Analyzing the credit information:
After accumulation of credit data about the indebted individuals from the distinguished
sources, the firm should make examination of borrowers credit value, legitimate
investigation of credit value helps in setting up as far as possible and decides the level of
danger connected with the record. The investigation ought to cover 2 angles:
 Quantitative
 Qualitative.
For the analysis of credit risk and debtor credit worthiness, the financial manager consider the
following 3 important aspects.
 Traditional credit analysis.

 Numerical credit scoring method
 Discriminate analysis.
Traditional credit analysis: Traditional approach of credit approach of credit analysis

involves the assessment of a debtors in term of five “C” of credit which are the following
 Character
 Capacity
 Capital
 Conditions
 Collateral
Numerical credit scoring method:
It is one of the quantitative methodologies created to gauge stretching out exchange credit to
the client on the premise of the accessible data
Discriminate Policy
It is a PC based innovation for foreseeing whether another credit candidate will end up being
great or terrible credit hazard. The separate examination is connected in anticipating chapter
11 yet have it is connected in operational ampleness of working capital and liquidity
predication setting.

c) Credit granting decision:
evaluate the credit value of it needs to choose ought to be allowed. ought to utilize the NPV
tenet to settle on the choice, is certain credit ought to be conceded. On the off chance that the
firm pick not to give any credit to the firm keeps away from the likelihood of misfortunes the
chance of expanding its productivity.
On other hand on the off chance that it gifts credit then it will advantage it clients. e
productivity client, and after that the firm might lose its venture. The normal net is
distinction between the and net advantage estimation of the normal misfortune. The credit
extension methodology can be set up to maintain a strategic distance from the requirements
of researching the expansion of credit every time a request is gotten to examine the
augmentation of credit. The term credit extension allude as far as possible the measure of
credit stretched out to a record at a given period.
 Companies Bargaining power: If an organization has. The organization will have a

string haggling power on the off chance that it has a solid item, imposing business
model and brand picture, extensive size or solid monetary position.
 Buyer Requirements: In various business division purchasers or merchants are not
ready to work with augmented credit this is especially along these lines, on account of
modern items.
 Buyers Status: Large purchasers request simple credit terms since mass buyers and
higher bartering control a few organizations take after an approach of to little is
entirely hard to gather contribution from them.
 Association with dealer: Companies infrequently stretch out credit to merchants to
construct long haul association with or to compensate them for their unwaveringness.
 Marketing Tool: Credit is utilized as a promoting apparatus, especially when another
items is dispatched or when another organization needs to push its week items.
 Industry rehearses: Small organizations have been discovered guided by industry
practices or standard more than the extensive organizations. In some cases
organizations keep giving credit in light of past practices as opposed to industry
hones.
The following methods can be adopted for this purpose:
The control of acco8unt receivables

1. Accounting ratios
2. Days sales outstanding
3. Aging schedule of receivables
4. Line of credit
5. Collection matrix
1. Accounting ratios: they are good help in order to control the receivables. Through several
ratios may be calculated in this regards. They are
A. Debtors receivable turn over ratios:
Indebted individuals turn over proportion allude to the deals to record s receivables. This
proportion builds up the relationship between net credit deals and normal exchange indebted
individuals. The goals of processing these proportions is to decide the proficiency with which
the exchange indebted individuals are overseen.
In the event that the real; borrower is under 5 it implies more cash is secured up records
receivable. Either deal has drooped up in respect to size of indebted individuals, or borrowers
have ascended to deals. In the event that the proportions surpass the high ground, it implies
clients speedily pay energetically or purchase over power. It is a decent.
Interpretation: it shows quantity borrowers amid. By and large the higher estimation of
indebted individuals the most proficient is the administration of offers fluid are the account
holders. Thus, low account holders turnover infers wasteful administration of borrowers and
less fluid indebted individuals. This proportions ought to be contrasted and the proportions of
alternate firms amid comparative business and pattern might be likewise observed to be better
of the proportion
.B. AVERAGE COLLECTION PERIOD:
The average collection behaviour found by dividing the average receivables by the amount of
credit sales per day.
Average collection period= Average receivables/ Credit sales/ Day

Number of days out standing may be calculated on a weekly basis
The managerial efficiency can be ascertain by comparing it with the past year periods of the
firm.
C. Receivables to sales:
Receivables can be communicated to vacillate in direct connection to the volume of offers,

gave that the business terms and gathering rehearses don't change. At the point when the
credit deals figures for a period are not accessible, downright deals figures might be utilized.
Receivables to the sales ratio= Receivables/ Annual Credit sales*100
D. RECEIVABLES AS PERCENTAGE OF CURRENT ASSETS:
The proportions clarify the measure of receivables per rupee of current resources speculation
and its size in current resources. Correlation of the proportion over a period offers and list of
an organizations changing strategies as to the level of receivables in working capital.
2. Day sales outstanding:
Day deals exceptional allude to the quantity of business days that an organization takes to
gather instalment after the finishing of the deal. This quality is a normal that depends on the
month to month action in the record receivable division. In the event that the days deals
exceptional number is low, it for the most part mirrors a successful and productive record
receivable office. On the off chance that this worth is high, it reflects how long the firm is
taking to gather the instalment and might highlights issues in the accumulation.
The days deals extraordinary at a given time "t" might be characterized as the proportion of
record receivable exceptional around then to normal every day deal figures amid the former.
Days sales outstanding =(*Average Net accounts Receivables)*365 time
*Average account receivables figured including working grid record receivable parity the
end net records adjust and separating the outcome by 2.
*Net Credit Sales= Total Credit sales – Sales discount – Sales return and allowances.

3. AGING SCHEDULE OF RECEIVABLES:
The amount of receivables of the firm can be measured by taking a gander at period of
receivables. The more seasoned the receivables lower is the amount and more prominent odds
of default. In maturing plan , downright extraordinary receivables on a specific day are
characterized into various age amasses together with the rate of aggregate receivables that
falls in every gatherings. Time of account holders allude to what extent obligations are
extraordinary
4. LINE OF CREDIT:
This is another control measure for receivable administration which alludes to the most
extreme sum a specific client might have as because of the firm whenever. Diverse credit
extensions are permitted to various clients.
The credit extension must be gotten occasionally for every one of the clients. This does not
imply that credit line must be changed, rather it might be unaltered or expanded or lessened,
5. COLLECTION MATRIX:
With a specific end goal to concentrate effectively the adjustments in the instalment conduct
of clients. It is useful to take a gander at the example of the accumulation connected with the
credit deals. From the accumulation design, one can judge whether the gathering is enhancing
, stable and so forth. Optional advantage of such examination is that it gives a verifiable
record of accumulation rate could be helpful in anticipating the month to month receipts for
each planning period,
3.9 GUIDELINES TO MAINTAIN CREDIT SCORE FOR THE COMPANY:
 Avoid over extending credit, uninvited charge cards that lands via mail might entice to
utilize, yet clients won't organization FICO assessment.
 Not ones disregard overdue bills. In the event that the client’s happens upon any
issues reimbursing the organization obligation, call your account holders to make
settlement measures. In the event that the client’s tells the organization are
experiencing issues they might be adaptable.

 Keep organizations extraordinary obligation as low as organization can. Always

extending the clients credit near organizations cut-off is seen unwell.
 Credit is not constructed momentary. It is better to give banks a more extended

authentic time allotment to audit, a more extended
3.10 PRINCIPLES OF CREDIT MANAGEMENT:
"The reason for any business endeavour is the acquiring of benefit, credit in itself is used to
build deal, yet deals must give back a profit."5 The essential target of administration or
receivables ought not to be constrained to development of offers but rather ought to include
boost of general rates of profitability. Along these lines, receivables administration ought not
be kept to negligible accumulation or receivables inside of the briefest conceivable period yet
is required to centre due thoughtfulness regarding the advantage cost exchange off identifying
with various receivables administration.
1. Allocation or Authority
Powerful gathering approaches administration. The productivity of a credit administration in
detailing and exestuation of credit and gathering arrangements to a great extent relies on the
area of credit division in the authoritative structure f the worry. The part of power portion can
be seen under two ideas. According to the primary idea, it is put under the immediate
obligation of boss money officer for it being a capacity fundamentally financed by nature.
Further, credit and gathering arrangements lay direct impact on the dissolvability of the firm.
"Consequently the credit and accumulation capacity ought to be put under the immediate
supervision of the people who are in charge of the association's monetary position." "There
are other who recommend that business firms ought to entirely authorize upon their business
divisions the rule that deals are insolate until the worth thereof is realsied8 Those supporting
this viewpoint argue to put the power of distribution under the immediate charge of the
advertising official or the business office. To close "the sensibility to direct credit and
accumulations approaches might be doled out either to a monetary official or to an
advertising official or to them two mutually relying on the hierarchical structure and the goals
of the firm.
2. Selection of Proper Credit Terms

The receivables administration of an undertaking is required to decide the terms and

conditions on the premise of which exchange credit can be authorized to the clients are of
indispensable significance for an endeavour. As the way of the credit arrangement of an
endeavour is chosen the premise of segments of credit strategy. These parts incorporate;
credit period, money markdown and money rebate period. By and by, the credit arrangement
of firms, shift inside of the scope of merciful and stringent. A firm that tends to allow long
stretch credits and its borrowers incorporate even those clients whose money related position
is farfetched. Such a firm is said to be taking after permissive credit strategy. As opposed to
this, a firm giving credit deals to a generally brief timeframe that too on very particular
premise just to those clients who are monetarily solid and have demonstrated their credit
value is said to be taking after stringent credit approach.
3. Credit Investigation
A firm if goals to keep up powerful and proficient receivables administration of receivables

must embrace a careful examination before choosing to allow credit to a client. The
examination is required to be gone ahead regarding the credit value and monetary soundness
of the account holders, in order to keep the receivables for falling into the class of terrible
obligations later on at the season of accumulation. Credit examination is not just carried on
already. In any case, on account of firms honing liberal credit arrangement such examination
might be required to be directed when indebted individual’s neglects to make instalments of
receivables due on him even after the expiry of acknowledge deal to spare suspicious
obligations from turning out to be awful obligations.
4. Sound Collection Policies and Procedures
Receivables administration is connected with a decent level of danger. As a couple of

borrowers are moderate payers and some are non-payers. In what capacity ever proficient and
compelling a receivables administration might be the component of danger can't be stayed
away from by and large however can be minimized, all things considered, it is hence the
quintessence of sound accumulation approaches and systems emerges. A sound gathering
approach goes for quickening accumulation shape moderate payer and decreasing awful
obligations misfortunes. As a decent accumulation polices guarantees brief and normal
adopting so as to gather accumulation systems in an obvious grouping

CHAPTER 4
4.1 DATA ANALYSIS AND INTERPRETATION:
 Credit period =30 days

 Cash discount period=15 days
 Cash discount=3%
The calculations using in Data analysis are
1. Debtors turnover Ratio

2. Average collection Period

3. Inventory turnover ratio
4. Receivables to sales
5. Working capital turnover ratio
6. Debtors trend and sales trend
7. Scenario Analysis for 5 years(2011-2015)
Calculation of debtor turnover ratio
It is an activity ratio which estimates the number of times a business collects its average
accounts receivable during a period.
This measures a relationship between debtors and sales
Debtor turnover ratio= Total Sales

Total Sundry debtors
4.1 Table showing debtor turnover ratio from 2011-2015
(In lakh)
YEARS Calculation Debtor turnover ratio

2010-2011 1021.65/224.25 4.55 times
2011-2012 1127.56/224.25 5.02 times
2012-2013 9012.98/178.76 15.41 times
2013-2014 1127.56/143.86 7.83 times
2014-2015 1336.70/335.65 3.98 times
Analysis:
Debtor turnover of debt compilation of the corporation it shows the number of days average
turnover during a period. A high debtor turnover indicate a more well-organized
administration of debtor and low ratio implies inefficient management of debtors. In the
above table in year 2012-2013 it was highest 50.41 times and in the year 2014-2015 it is
lowest 3.98 times
1. Graph showing debtor turnover ratio performance.
Debtor turnover ratio

10 9.41
9
7.83
8
7
6 Debtor turnover ratio
5.02
5 4.55
3.98
4
3
2
1
0
2010-20112011-20122012-20132013-20142014-2015
Interpretation:
AHPP is showing a decreasing trend from 2014-2015 3.98 ties and the highest was 50.41
times highest in the 2012-201, it may be due to company’s adequate credit policy DTR is
decreased in the year 2014-2015 generally lower the debtor days number are better. Lower
figures may indicate inefficiency in collecting outstanding sales 2012-2015 as compare to
2010-2011and 2011-2012 have been decreased in the year 2014-2015 by 3.98 times, a low
receivables turnover figures may not be the fault of the credit and collection staff at all.
Instead, it is possible that errors made in other parts of the company are preventing payments.
ACP= 365/DTR
2. Table showing average collection period from 2011-2015:
YEARS Calculation ACP

2010-2011 365/224.25 1.62 days

2011-2012 365/224.25 1.62 days

2012-2013 365/178.76 2.04 days
2013-2014 365/143.86 2.53 days
2014-2015 365/335.65 1.08 days
Analysis:
ACP shows the average debt. A superior accounting period indicate the more times is taken
by the management for collection of debts. And lower in the above table in the year 2014-
2105 the ACP is lowest 1.08 days and in year 2013-2014 the ACP is highest 2.53 days.
2. Graph showing accounting Collection period.
ACP
3 2.53
2.5 2.04
2 1.62 1.62
ACP
1.5 1.08
0.5
0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Interpretation
AHPP is viewing an increasing in the year 2012-2013 with 2.53 days and the lowest in the
year 2014-2015.
It shows that the collection period of the company has been constant for 2010-2011 and in
year 2011-2102 that it represents company’s ACP is constant. But in the year 2012-2013 is
increased by 2.04 and also in the year 2013-2014 by 2.53, a longer collection period may
negatively affect the short term debt paying ability of the business in the eyes of analysts.
In the year 2013-2014 is increased compared to 2014-2015 these situation can result in
increased bad debt and higher costs.
Calculation of inventory turnover ratio:
Inventory turnover ratio= Inventory/Net Sales
3. Table showing inventory turnover ratio from 2011-2015
YEARS Sales Average Inventory Inventory turnover

ratio
2010-2011 1021.65 289.33 3.53
2011-2012 1127.56 289.33 3.89
2012-2013 9012.98 312.58 28.02
2013-2014 1127.56 189.51 5.94
2014-2015 1336.71 203.33 6.57
Analysis:
A higher value of inventory turnover indicate better performance and the lower value income
inefficiency in jealous inventory levels. A lower account turnover ratio may be an suggestion
of over stocking which may pose risk ob obsolescence and amplified inventory asset costs.
However, a very high charge of this ratio may be accompanied by loss of sale due to
inventory scarcity. In the above table the record turnover ratio is fluctuating in the year 2012-
2013 it was highest 28.02 and in the year 2010-2011 it was lowest 3.53.

3. Graph showing Inventory turnover Ratio.
Inventory turnover ratio

2014-2015 6.57
2013-2014 5.94
Inventory turnover ratio

2012-2013 28.02
2011-2012 3.89
2010-2011 3.53
0 5 10 15 20 25 30
Interpretation:
In the above analysis of inventory turnover ratio of AHPP. It is peak in the year 2012-2013 of
28.02 period and it is less in the day 2010-2011 of 3.53 times the inventory turnover ratio
highest it may be due to better performance of the company in inventory management 2010-
2011 the inventory is lowest company to 5 years analysis it may be due to inefficiency in
controlling the inventory levels by the company.
Working Capital Turnover ratio:
Working capital turnover ratio= Net sales/Working capital
Working capital= Current assets - Current Liabilities

4.Table showing calculation of working capital turnover ratio
Years Current Assets – Working Net sales/ Working capital

Current Liabilities Capital Working capital turnover ratio
2010-2011 666.98 – 208.99 457.99 1021.65/487.99 2.09
2011-2012 666.98 – 160.98 506.00 1127.56/506.00 2.22
2012-2013 555.69 – 530.68 25.01 9012.98/25.01 3.60
2013-2014 666.98 – 208.99 457.99 1127.56/457.99 2.46
2014-2015 715.35 – 208.99 506.36 1336.70/506.36 2.63
Analysis:
working capital with regards to sales. In the company by analysis the working capital
turnover ratio is fluctuating from 2012-2013 and 2010-2011 is decreased to
4. Graph showing working capital turnover ratio
Working capital turnover ratio

4
3.5 3.6
3
2.5 2.63
2.46 Working capital turnover
2.09 2.22 ratio
2
1.5
1
0.5
0
2010-20112011-20122012-20132013-20142014-2015
Interpretation:
Working capital turnover ratio is an guide to know whether the operational capital has been
effectively utilised or not in promotion sales. By the above investigation, in year 2013-2014
by 3.5 times, where a advanced working capital turnover ratio indicates efficient utilization of

working capital, that is the firm can pay off its fixed liabilities out of its working capital. And
in the year 2010-2011 the ratio is less 2.00 times, where a lower working capital turnover
shows that the firm has to face the shortage of working capital to convene its day to day
business actions unsatisfactory.
Trend of debtors
5. Table showing the trend debtors from financial year 2011-2015
Sum of debtor= Total of sundry debtor of the company
Years Debtors (amount in Lakh) Trend(current year debtors/ base year

debtors
2010-2011 224.24 100
2011-2012 224.24 100
2012-2013 178.76 79.71
2013-2014 143.86 64.15
2014-2015 335.65 149.68
Analysis:
The debtor’s velocity is increasing in the year 2014-2015 with 149.68 it was 100 in the year
2010-2011 and 2011-2012 and then decreased by 79.71 and by 67.15 in the 2012-2013 and
2013-2014 there is a difference of changes.
5. Graph showing the trend debtors for financial year 2011-2015

Trend(current year debtors/ base year debtors)

160 149.68
140
120
100 100
100
79.71
80 64.15 Trend(current year
60 debtors/ base year debtors
40
20
0
1 2 3 4 5
2 01 2 01 2 01 2 01 2 01
1 0- 1 1- 1 2- 1 3- 1 4-
20 20 20 20 20
Interpretation:
In the above analysis the debtor trend is increasing in the year 2014-2015 because of
good service provided by the company towards debtors. Due to increasing in the ratio
of debtors in the company the current assets velocity will be increased immediately
this is good sign of the business. The debtors are comfortable with contract issues of
the company.
Trend of sales
6. Table showing trend of sales from 2011-2015
Years Sales Trend= current year sales/ base

year sales
2010-2011 1021.65 100
2011-2012 1127.56 110.36
2012-2013 9021.98 170.07
2013-2014 1127.56 110.36
2014-2015 1336.70 130.83
Analysis
In the year 2010-2011 sales velocity 1021.65 Crore in the year 2011-2012 it was 1127.56 crore
increased and in the year 2012-2013 it was decreased by 9021.98, in the years again it was
1127.56 crore and again it has been increased by 1336.70 in the year 2014-2015
6. Graph showing trend of sales from 2011-2015

Trend= current year sales/ base year sales

180
160
140
120
100 170.07 Trend= current year sales/
80 base year sales
130.83
60 100 110.36 110.36
40
20
0
1 2 3 4 5
2 01 2 01 2 01 2 01 2 01
1 0- 1 1- 1 2- 1 3- 1 4-
20 20 20 20 20
Interpretation:
In the above analysis the sales are increasing then the company’s profit will also be increased
automatically. Here the sales are increasing due to quality of product and services by AHPP
and customer satisfaction towards the company.
Calculation of Receivable to Sales
Receivables to Sales= Receivables/ Annual Sales*100
7. Table showing calculation of Receivables to sales.
Years Receivables Sales Calculations Receivables to

Sales
2010-2011 224.25 1021.65 224.25/1021.65*100 21.94
2011-2012 224.25 1127.56 224025/1127.56*100 19.88

2012-2013 178.76 9012.98 178.76/9012.98*100 11.98

2013-2014 143.86 1127.56 143.86/1127.56*100 12.75
2014-2015 335.65 1336.70 335065/1336.70*10 25.11
0
Analysis:
In the above analysis the receivables are increasing if it is compare to sales of the company.
In the year 2014-2015 it was highest and lowest was in the year 2013-2014 by 9012.98 the
relationship between receivables and sales representing in the above table.
7. Graph showing calculation of Receivables to sales
Receivables to Sales
30
25 25.11
21.94
20 19.88
Receivables to Sales
15
11.98 12.75
10
0
2010-20112011-20122012-20132013-20142014-2015
Interpretation:
The receivables of the company are increasing in the year2014-2015 in the proportion to
sales. The receivables are increasing due to the credit policies of the AHPP. The relationship
of the sales and receivables are positively related.
8. SCENARIO ANALYSIS:
At present the credit period is 60 days suppose the credit age is extended to 80days. Then sale
may increase by 10 per cent. If credit period is decrease by 30 days. Then sales decreased by
20 per cent.

computation of increase in credit period

Calculation for 2011-2012
declaration of raise in credit period
Particulars Existing Days(+20%) Days(-20%)

A. Credit period 60 80 30
B. Annual Sales 1021.65 1225.98 (+20%) 817.32 (-20%)
C. Levels of receivables at sale value 170.27 272.44 68.11
(A*B/360)
D. Increment investing - 102.17 (-102.16)
receivables( C-170.27)
E. Assume incremental profit at 30% - 30.65 -30.64
(0.3*D)
Analysis:
Annual sales of 80 days is more than existing credit period of 60 days, if the company
reduces the credit period of 30 days then sales will be reduced compare to existing 817.32.
Levels of receivables:
Level of receivables will be more if the company increases the credit period of 80 days. Then
the level of receivables will be less if credit period is reduced by 30 days.
Incremental investment in receivables:
The incremental investment in receivables is calculated by deducting levels of receivables of
the current period LOR is 170.27 if we deducted we will get zero as II. Like that we have to
calculate.
Assume incremental profit at 30% (0.30 x incremental investment in receivables).

The incremental profit of 80 days will be more compare to 30 and 40 days (here I assumed
30%) here the incremental profit is calculated by multiplying 0.3 to the IIR
Graph showing statement of increase in credit period for 2010-2011

1400
1225.98
1200
1021.65
1000
817.32
800
600 Linear ()
400
200
0
existing add 20% less 20%
Interpretation:
By analysing the above graph if the company add 60days the sales, level of receivables,
incremental investment in receivables and incremental profit is more so the company should
increase the credit period of 80 days then the company profit, sales will be more.
Calculation of increase in credit period
Statement of increase in credit period
Particulars Existing Days (+20%) Days (-20%)

B. Annual Sales 1127.56 1353.07 902.04
(A*B/360)
Increment investing receivables( C- - 112.76 (-113.75)
187.92)
Assume incremental profit at 30% - 33.82 (-34.12)
(0.3*D)

Analysis:
Annual Sales.
Annual sales of 80 days is more than existing credit period of 60 days that is 1353.07 million,
if the company reduce the credit period 30 days then sales will be reduced compare to exiting
902.04.
Levels of receivables.
Levels of receivables will be more if the company increase the credit period to 80 days that is
300.68 then the level of receivables will be very less if credit period is reduced to 30 days
that is 74.17
Incremental investment in receivables.
The incremental investment in receivables is calculated by deducting level of receivables of

exiting by current period level of receivables. For 60 days existing LOR is 187.92 .If we
deducted will get zero as an IIR. Like that we have to calculate for both 80 and 30 days
Assume incremental profit at 30%
The incremental profit 80days will be more compare to 60 days, here I assumed 30%
incremental profit is calculated by multiplying by 0.3 to IIR.
1400
1200
1000
800 1353.07
1127.56
600
902.04
400
200
0
Existing (+20%) (-20%)

Interpretation:
By analysing the above graph if the company add 20% to exiting credit period of the
company that is 80days the sales, level of receivables, incremental investment in receivables
and incremental profit is more compare to 60days so the company should increase the credit
period then the profit and sales will be more.

Particulars Existing Days(+20) Days(-20)

B. Annual Sales 9012.98 10815.57 7210.38
(A*B/360)
(0.3*D)
Analysis:
Annual sales of 80 days is more than existing credit period of 60days that is 9012.98, if the
company reduce the credit period of 30 days then sales will reduce by 7210.38 the then sales
will reduce compare to existing one.
Levels of receivables
Levels of receivables will be more if the company increases the credit period of 80days that is
2403.46 Then the level of receivables will be less if credit period is reduced to 30days that is
600.86

existing by current period level of receivables. For 60days existing LOR is 187.92, if we
educated we will get zero as an IIR. Like that we have to calculate for 80 and 30 days.

Assume incremental profit by 30%
The incremental profit for 80days will be more compare to 80 and 30 days (here I assumed
30% ) incremental profit is calculated by multiplying 0.3 to IIR.
7210.38
9012.98
Existing
Days(+20)
Days(-20)
10815.57
Interpretation:
By analysing the above graph if the company add 30% to existing profit credit period of the
company that is 80 days the sales, the level of receivables, incremental investment in
receivables and incremental to 60days from 80 days then the company profit, sales will be
more.


B. Annual Sales 1127.56 1353.07 902.04
(A*B/360)


(0.3*D)
Analysis:
Annual sales of 80days is more than existing credit period of 80days that is 1353.07 million,
if the company reduce the credit period of 30 days then sales will be reduced by 1069.36
compare to existing that is 1127.56 million.
300.56 Then the level of receivables will be less if credit period is reduced to 30days that is
1902.04


1600
1400 1353.07
1200 1127.56
R² = 0.25
1000 902.04
800
600
400
200
0
Existing Days(+20) Days(-20)
Interpretation:
more.


B. Annual Sales 1336.70 1604.04 1069.36
(A*B/360)
(0.3*D)

Analysis:
Annual sales of 80days is more than existing credit period of 80days that is 1604.04 million,
if the company reduce the credit period of 30 days then sales will be reduced by 1069.36
compare to existing that is 1336.70 million.
356.53. Then the level of receivables will be less if credit period is reduced to 30days that is
1604.04.

1800 1604.04
1600
1336.7
1400
1069.36
1200
1000
800
600
400
200
0
Existing Days(+20) Days(-20)

Interpretation:
more.
REGRESSION ANALYSIS
Regression Statistics values

Multiple R 0.972378242
R Square 0.945519446
Adjusted R Square 0.927359261
Standard Error 2.798727614
Observations 5
H0: There is no significant difference between inventory turnover ratio and working capital
turnover ratio.
H1: There is significant difference between inventory turnover ratio and working capital
turnover ratio.
X Variable 1 Residual Plot

4
2
Residuals
0
2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8
-2
-4
X Variable 1
INTERPERTATION:

It is a statically measure how close the data are to the fitted regression line. Here the value of
R2 is 0.95 which indicates the above model explains the variability of the data around its
mean. Hence we can conclude that there is high degree of association between the working
capital and inventory turn over
HYPOTHESIS TESTING:
The following table shows the hypothesis testing of two variable.
ANOVA
Significance
df SS MS F F
407.822771 52.0655194
Regression 1 407.8227712 2 6 0.005487862
7.83287625
Residual 3 23.49862877 7
Total 4 431.3214
The following graph shows hypothesis testing.
450
400
350
300
250 Residual
200 Regression
150
100
50
0
df SS MS F Significance F
The following table and graph shows that the relation between the two variable in which it
shows the residual value and regression equation its relation between inventory turnover and
capital turnover ratio.
REGRESSION AND CO-EFFICIENT
Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept - 6.222912571 - 0.011668823 - -

14.5906166
34.39470175 5.527106698 54.19878687 4
24.3784892
X Variable 1 16.91719298 2.344515999 7.215644078 0.005487862 9.455896706 6
ANALYSIS: since the P- value is greater than the critical value, the null hypothesis accepted.
Hence there is no significant difference between inventory turnover and working capital
turnover ratio.
Graph showing regression co-efficient
30
20
10
0
-10 X Variable 1
we 5%
%
Lo l ue
tat
Up 5%
0%
r
s
ro
nd ent
Up 5.0
tS
5.
r9
r9
Er
-20 Intercept
ci
P-v
r9
r9
d
we
pe
ef
ar
pe
Co
-30
Lo
Sta
-40
-50
-60
Residual output
observation Predicted Y Residuals

0.96223157
1 9 2.567768421
3.16146666
2 7 0.728533333
26.5071929
3 8 1.512807018
7.22159298 -
4 2 1.281592982
10.0975157 -
5 9 3.527515789

30
25
20
15 Observation
Predicted Y
10 Residuals
5
0
1 2 3 4 5
-5
SUMMARY AND FINDINGS:
 Debtor turnover is decreasing the year of 2011 to 2015 in the year, hence in the year
2014-2015 debtor turnover was 3.98times and in the year 2012-2013 it is 50.41 times.
It is decreased by 46.23 times.
 Accounting collection period is increasing from the year 2012-2014 2.53 hence in the
year 2014-2015 ACP was 1.83(2) days it has been increased for one day.

 The trend of the debtor is increasing it may be cause to the loss in coming years to the
company.
 The inventory turnover ratio of the company is decreasing by analysis in the year
2014-2015.
 The company’s both debtors and sales are increasing continuously.
 The company’s working capital ratio is fluctuating from the year 2011-2012 and
2014-2015.
 The company’s average collection period is increasing and debtor turnover ratio is
decreasing, due to adequate credit policies in the company.
 The ACP is not good, when DTR having highest 50.38 in 2012-2013 value, due to
matching the debtor terms and company’s standards
 ACP having lowest value in the year 2014-2015 1.83 (2 days) due to in efficiency of
debtors he is taking less time to repay the full credit amount.
SUGGESTION GIVEN TO ASSOCIATE HYDRO PRESSING PRIVATE LIMITED:.
1. The debtor turn over must be increase by providing certain services to debtors.
2. Accounting collection period should be same by giving suitable information.
3. Management credit period should be increased based on credit borrowed by the other
company, so that the company can earn more profit.
4. The company has to increase their current ratio some more by faster conversion cycle
of debtors or Accounts receivables.
5. The debtor velocity has to decreased hence the company is having adequate credit
policies then also it is increasing so the company has to look for it..

6. The company should provide some attractive schemes for the regular consumers as
well as retailers.
7. Offers performance awards annually to encourage employees, agents and dealers.
8. Monitoring the state of receivables.
9. Dispatch of letters to customers whose due date is near.
10. Telegraphic, telephonic and mail advice to customers around the due date.
11. Legal actions against overdue accounts.
CONCLUSION:
It was an exciting experience to me for working with AHPP from this project I learnt about
marketing tactics used by AHPP.
AHPP is reputed organization which has been developed its good will in the market to
scompete with other competitors in the market. It has to adopt modern technology in the
collection of debt from debtors who have not paid after due date also. It has to increase the
rate of commission payable to its agents or retailers.
To survive in the market the company needs to adopt an aggressive credit policy as of
competitors.
Last but not least I would like to conclude AHPP ad good organization to work as well as to
interact with people. All the worker and member of the union nicely motivated me.

FINANCIAL STATEMENT
BALANCE SHEET AS ON 31ST MARCH 2011
LIABILITIES
Rs(in Lakh) ASSETS Rs (in Lakh)
FIXED
EQUITY 97,24,564.00
ASSETS
CAPITAL Bore Well
3,47,192.00
ACCOUNT Expenses
Reserves and
(-)2,91,878.00 Computer A/c 8,57,494.00
surplus
Computer
Share capital 15,00,000.00 7,800.00
Software A/c
Share premium
account - Cycle A/c 1,356.00
Dep. on
LOANS
computer (-)1,017.00
(LIABILITY)
software
Electrical
Bank OD A/c 3,59,14,036.40 6,30,770.00
Fittings
Electrical
Secured loans 29,00,230.00 89,264.00
Fittings Unit II
Unsecured loans Furniture and 12,77,658.0
17,24,963.49
Fixtures 0
CURRENT Furniture and
20899105.97 2,78,090.00
LIABILITIES Fixtures unit 2
Office
Duties and Taxes 5,34,052.00 8,84,322.00
Equipment
Provision 13,40,223.00 Office 97,346.00

Equipment unit
II
Plant and 2,29,24,883
Sundry Creditors 1,56,52,778.59
Machinery .0
Plant and
Outstanding
22,70,552.38 Machinery(unit 4,02,488.00
Liabilities
II)
Pro. on Dep on
Directors Current
11,01,500.00 computer 2,540.00
A/c
software
Provision for
7,23,736.00
SUSPENSE A/c Dep. on
Computer
Profit and Loss Provision for
1,356.00
A/c Dep. on Cycle
Provision for
Opening Balance 1,09,78,039.08 Dep. on Elec. 6,91,536.00
Fittings
Provision for
Current Period 36,09,116.72 Dep. on Fur. & 9,03,494.00
fixtures
Provision for
Less: Transferred
8,00,227.00 Dep. on Office 5,85,094.00
Equipment
Provision for
1,59,78,731
Dep. on Plant
.0
and machinery
Provision for 16,56,573.0
Dep. on vehicles 0
21,55,579.0
Vehicle A/c
0
Vehicle (Two
Wheeler) 2,22,524.00
INVESTMENT 10,000.00
Investment
10,0000.00
CURRENT
6,66,98,822.66
ASSETS
Closing stock 2,89,33,897
Deposits (Asset) 32,18,650.
Loans and
Advances 93,23,787.
(Asset)
Sundry Debtors 2,24,25,389
Cash-in-hand 14,38,663.2

Bank Account 87,208.25

Excise Account
4,50,307.90
Groups
Advance income
8,20,919.50
Tax
Advance income
-
Tax 2010-11
Advance income
-
Tax 2011-12
GRAND
GRAND TOTAL 7,64,33,386.66 7,64,33,386.66
TOTAL
LIABILITIES
Rs(in Lakh) ASSETS Rs (in Lakh)
FIXED
EQUITY 7251154.00
ASSETS
CAPITAL Bore Well
8,33,569.00 406174.00
ACCOUNT Expenses
Reserves and
(-)6,66,431.00 Computer A/c 857494.00
surplus
Computer
Share capital 15,00,000.00 7800.00
Software A/c
Share premium
account - Cycle A/c 1356.00
Dep. on
LOANS
computer (-)1017.00
(LIABILITY)
software
Electrical
Bank OD A/c 3,88,64,961.50 630770.00
Fittings
Electrical
Secured loans 27,41,176.00 89264.00
Fittings Unit II
Unsecured loans Furniture and
28,93,398.49 1277658.00
Fixtures
339695.00
Office
Duties and Taxes 2,40,930.16 884322.00
Equipment
Office
Provision 13,40,223.00 Equipment unit 97346.00
II

Plant and 23072383.0

Sundry Creditors 1,00,59,426.25
Machinery 0
Plant and
Outstanding
25,23,149.00 Machinery(unit 402488.00
Liabilities
II)
Pro. on
Directors Current depreciation on
19,35,135.00 2540.00
A/c computer
software
Provision for
SUSPENSE A/c Dep. on 768463.00
Computer
Profit and Loss Provision for
1356.00
A/c Dep. on Cycle
Provision for
Opening Balance 1,37,86,928.80 Dep. on Elec. 718707.00
Fittings
Provision for
Current Period (-)21,31,191.48 Dep. on Fur. & 1029121.00
fixtures
Provision for
Less: Transferred
(-)3,74,553.00 Dep. on Office 711259.00
Equipment
Provision for
18156088.0
Dep. on Plant
0
and machinery
Provision for
1897023.00
Dep. on vehicles
21,55,579.0
Vehicle A/c
0
Vehicle (Two
Wheeler) 2,22,524.00
Investment
10,0000.00
CURRENT
6,66,98,822.66
ASSETS
Closing stock 2,89,33,897
Loans and
Advances 93,23,787.
(Asset)
Sundry Debtors 2,24,25,389
Cash-in-hand 14,38,663.2
Bank Account 87,208.25

Excise Account
4,50,307.90
Groups
Advance income
8,20,919.50
Tax
Advance income
-
Tax 2010-11
Advance income
-
Tax 2011-12
GRAND
GRAND TOTAL 7,34,62,258.72 7,34,62,258.72
TOTAL
BALANCE SHEET AS AT 31st MARCH -2013
Liabilities Amount Assets Amount
Shareholders Fund: Fixed assets:
Share capital 15,00,000 Tangible fixed assets 7251154
Reserve and surplus 13,786,929 Non-current 10000
Non-current liabilities Investments 666431
Long Term Liabilities 57,26,693 Deferred tax 10671840
Current Liabilities Current Liabilities
Short term barrowings 38864962 Inventories 31258957
Trade payables 11301964 Trade receivables 17876001
Cash and bank

Other current liabilities 911644 3419159
balances
Short term loans and

Short term provisions 1990223 3015250
advances
Total 74,168,792 Total 74,168,792

BALANCE SHEET AS ON 31ST MARCH ENDING-2014
LIABILITIES
Rs (in Lakh) ASSETS Rs (in Lakh)
FIXED
EQUITY
ASSETS
Bore Well
CAPITAL ACCOUNT 12,08,122.00 406174.00
Expenses
Reserves and surplus (-)2,91,878.00 Computer A/c 857494.00
Computer
Share capital 15,00,000.00 7800.00
Software A/c
Share premium account
- Cycle A/c 1356.00
Dep. on
LOANS (LIABILITY) 4,05,39,229.89 computer (-)1017.00
software
Electrical
Bank OD A/c 3,59,14,036.40 630770.00
Fittings
Electrical
Secured loans 29,00,230.00 89264.00
Fittings Unit II
17,24,963.49 1277658.00
Fixtures
2,08,99,105.97 339695.00
Office
Duties and Taxes 5,34,052.00 884322.00
Equipment
Provision 13,40,223.00 Office 97346.00

Equipment unit
II
Plant and
Sundry Creditors 1,56,52,778.59 23072383.00
Machinery
Plant and
Outstanding Liabilities 22,70,552.38 Machinery(unit 402488.00
II)
Pro. on Dep on
Directors Current A/c 111,01,500.00 computer 2540.00
software
Provision for
SUSPENSE A/c Dep. on 768463.00
Computer
Provision for
Profit and Loss A/c 1,37,86,928.80 1356.00
Dep. on Cycle
Provision for
Opening Balance 1,09,78,039.08 Dep. on Elec. 718707.00
Fittings
Provision for
Current Period 36,09,116.72 Dep. on Fur. & 1029121.00
fixtures
Provision for
Dep. on Office 711259.00
Equipment
Provision for
Dep. on Plant 18156088.00
and machinery
Provision for
1897023.00
Dep. on vehicles
Pur (street
21,55,579.00
lighting)
Vehicle A/c 2,22,524.00
Vehicle (Two
Wheeler)
Investment
CURRENT
66698821.65
ASSETS
Closing stock 32,18,650.
Loans and
Advances 2,24,25,389
(Asset)
Sundry Debtors 14,38,663.2
Cash-in-hand 87,208.25

Bank Account 4,50,307.90

Excise Account
8,20,919.50
Groups
Advance
2,89,33,897-
income Tax
Advance
income Tax -
2010-11
Advance
income Tax -
2011-12
GRAND
GRAND TOTAL 7,52,79,384 7,52,79,384
TOTAL
ASSETS
LIABILITIES
Particulars Rs (in lakhs) Particulars Rs (in lakhs)
EQUITY FIXED ASSETS
CAPITAL ACCOUNT 7,82,347.00 Bore Well Expenses 406174.00
Reserves and surplus (-)7,17,653.00 Computer A/c 10,01,534.00
Computer Software
Share capital 15,00,000.00 41,990.00
A/c
Share premium account
- Cycle A/c 1356.00
Dep. on computer
LOANS (LIABILITY) 4,10,52,091 (-)1017.00
software
Bank OD A/c 3,8128790.59 Electrical Fittings 630770.00
Electrical Fittings
Secured loans 93,764.00
Unit II
2923300.49 13,81,081.00
Fixtures
1,90,13,040 3,39,695.00
Duties and Taxes 2,11826.52 Office Equipment 10,53,532.00
Office Equipment
Provision 3829674 1,07,846.00
unit II
Sundry Creditors 1,2427020.17 Plant and Machinery 2,44,76,268.00
Outstanding Liabilities 2511603.00 Plant and 4,23,410.00

Machinery(unit II)
Credit card corporation Pro. on Depreciation
29,393.48 (-)2540.00
Bank on computer software
Provision for Dep. on
Credit card HDFC Bank 3,532.81 (-)8,64,696.00
Computer
Profit and Loss A/c 1,80,13,458.9 (-)1356.00
Cycle
Opening Balance 1,23,88,056.14 (-)753118.00
Elec. Fittings
Current Period 85,19,373.95 (-)1274556.00
Fur. & fixtures
Less: Transferred Provision for Dep. on
28,93,972.00 (-)958465
Office Equipment
(-)19431900.00
Plant and machinery
Provision for Dep.
(-)1981820.00
Vehicle A/c
Vehicle (Two
Wheeler) 222524.00
Pur (Street Lighting) 91875.00

Vehicle A/c 2305009
INVESTMENT
Investment
10000.00
CURRENT
ASSETS
Closing stock 18951184.00
Deposits (Asset) 3203150.00
Loans and Advances
9267066.15
(Asset)
Sundry Debtors 33565071.43
Cash-in-hand 330094.23
Bank Account 3137601.94
Excise Account
392527.00
Groups
Advance income Tax 2559082.50
Advance against
30000.00
purchase of car
Advances (Byrappa) 100000.00
GRAND TOTAL 7,88,60,937.25 GRAND TOTAL 78860937.25

PROFIT AND LOSS ACCOUNT
PARTICULARS 2011 2012
Opening Stock 2,89,33,897.00 2,85,45,355.00

Raw Materials 1,29,70,358.00 1,56,33,382.00
Work in Progress 1,59,63,539.00 1,29,11,973.00
Purchase Accounts 5,83,24,684.94 7,23,97,624.24

Consumables / 99,09,581.24 85,55,129.47
Components
Lab. Charges / Tooling 1,76,04,170.70 2,09,19,203.77
Packing Materials 6,27,164.00 9,46,209.00
Raw materials 3,01,83,769.00 4,19,77,082.00
Import charges - -
Direct Expenses 21,93,314.00 23,66,404.00

Manufacturing Expenses 21,93,314.00 23,66,404.00
Gross Profit C/F 3,23,53,020.15 3,96,62,395.06
TOTAL 12,18,04,916.0 14,29,71,778.3

9 0
Indirect Expenses 3,47,00,498.02 3,64,26,492.08

Administrative & Other 47,36,069.24 56,71,157.56
Exp.

Admin &Other Exp.(II) - -

Employees Remuneration 2,06,32,958.00 2,03,60,342.00
and Benefits
Interest and Bank Charges 64,60,248.78 67,49,658.68
Other fees 50,000.00 90,773.00
Bad Debts Written Off 27,41,497.00 5,68,924.34
Depreciation 26,959.00 29,62,943.00
Loss on Sale of Vehicle 44,248.00 -
Machine Hire Charges 8,018.00 -
Electricity charges 500.00 -
Excise Duty written off - - 22,693.50
Rent for Factory shed unit - - -
5
Repairs and maintenance - - -
Factory unit II
Repairs and maintenance - - -
Building unit II
Net Profit - 36,09,116.72
TOTAL 3,47,00,498.02 4,00,35,608.80
PROFIT AND LOSS ACCOUNT FOR YEAR ENDING 2012-2013 AND 2013-2014
PARTICULARS 2013 2014
Sales Account 9,01,29,847.09 11,27,56,947.30

Export Sales 27,09,224.00 57,70,965.20
Interstate Sales 7,50,77,053.30 9,08,35,217.04
Labour Charges 7,57,307.80 15,70,747.40
(Sales)
Local Sales 1,04,90,332.88 1,60,47,463.42
Sales Rejection (-)5,38,728.08 (-)2,46,421.86
Rework Charges - -
Sales Return (-)16,13,673.0 (-)28,16,377.0
0 0
Sales Return Local (-)89,578.84 (-)50,182.90
Sales Return old (-)48,428.97 (-)1,38,319.00
Sales TNGST 4,87,215.00 6,60,855.00
Scrap Sales (Int. - -
state)
Scrap Sales (local) 28,99,123.00 11,23,000.00
Stock Transfer -
Direct Incomes 12,80,934.00
Packing and 3,92,111.00 8,23,931.00
Forwarding Charges
Packing Forwarding 24,001.00 4,16,112.00 67,366.00

II
Tool Consultancy - 3,89,637.00
Charges
Closing stock 3,12,58,957.00 2,89,33,897.00
Raw Materials 1,07,23,561.00 1,29,70,358.00
Work in Progress 2,05,35,396.00 1,59,63,539.00
TOTAL 12,18,04,916.09 14,29,71,778.30
Gross Profit B/F 3,23,53,020.15 3,96,62,395.06
Indirect incomes 2,16,286.39 373213.74

Claim for loss of - -
material
Dividend Received 19,800.00 2,27,360.00
on chits
Exchange Fluctuation 84,617.00 -
Interest on FD A/c 1,11,049.00 55,915.00
Profit on Sale of 1,26,858.00
Vehicle
Profit on Sale of 1,26,858.00
Vehicle
Miscellaneous 820.39 (-)50,459
Balance W. Off
Net loss 21,31,191.48 13,540.00
TOTAL 3,47,00,498.02 4,00,35,608.80

PROFIT AND LOSS ACCOUNT FOR YEAR ENDING -2015
PARTICULARS RS (in lakhs) PARTICULARS Rs(in lakhs)
Sales Account 13,36,70,998.32 Opening stock 2,03,33,452.00

Export Sales 1,44,62,640.00 Raw materials 66,06,496.00
Interstate Sales 11,08,77,661.60 Work in progress 1,37,26,956.00
Labour Charges 8,86,000.00 Purchase 8,08,62,548.85
(Sales) accounts
Local Sales 97,96,154.42 Consumables 2,17,39,4154.00
Sales Rejection (-)19,74,887.24 Lab charges 2,65,48,414.85
Rework Charges - Packing materials 12,28,393.00
Sales Return (-)20,99,015.46 Raw materials 3,13,46,326.00
Sales Return Local (-)3,00,437.00 Direct expenses 32,33,483.00
Sales Return old - Manufacturing 31,90,919.00
Sales TNGST 5,66,616.00 Gross profit c/o 4,83,20,586.47

Scrap Sales (Int. - Indirect expenses 4,03,48,509.56
state)
Scrap Sales (local) 14,56,266.00 Administration 77,74,564.29
expense
Stock Transfer Employees 2,63,34,465.00
remuneration
Direct Incomes 1,27,888.00 Interest and bank 49,69,154.27
charges
Packing and 1,16,365.00 Auditors 75,000.00

Forwarding Charges remuneration

Packing Forwarding 11,523.00 Depreciation 7,32,763.00
II
Tool Consultancy - Export 1,70,808.00
Charges documentation
Closing stock 1,89,51,184.00 Room rent for 3,16,830.00
employees
Raw Materials 68,08,915.00 Website charges 1,925.00
Work in Progress 1,21,42,269.00
TOTAL 12,18,04,916.09 Net profit 85,19,373.95
Gross Profit B/F 4,83,20,586.47
Indirect incomes 5,47,297.04

Claim for loss of -
material
Dividend Received 3,940.00
on chits
Exchange 5,14,453.00
Fluctuation
Excess provision of 1,688.00
tax earlier years
Profit on Sale of -
Vehicle
Miscellaneous 27,216.04
Balance W. off
TOTAL 4,88,67,883.51 TOTAL 4,88,67,883.51

BIBLIOGRAPHY
TITLE
AUTHOR PULISHER
Management
accounting HIMALAYA PUBLISHING HOUSE
M.N Arora
(SECOND EDITION)
Financial
management HIMALAYA PUBLISHING
R K Sharma and Shashi.K.Gupta
HOUSE
Financial
management Reddy Appanaiah, HIMALAYA PUBLISHING
Satyaprasad HOUSE
Cost and financial

Statement Natrajan HIMALAYA PUBLISHING HOUSE
Financial
management
B.S Raman HIMALAYA PUBLISHING HOUSE
WEBSITES

 www.ahppl.com
 www.textbiz.org
 www.spireframe.com
 www.highered.mcgrawhill.com
 ANNUAL REPORTS
 Annual report of AHP; for the year 2010-2011

A Study On Investment Behaviour Towards Saving With Special Reference To Sbi Bank, Bangalore"

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A study on Receivable Management.

1.1 INTRODUCTION ABOUT THE INTERNSHIP:

TITLE OF THE STUDY. “A study on RECEVIABLES MANAGEMENT at Associate

1.2 INTRODUCTION ABOUT STUDY.

BTL Institute Of Technology Page 1

1.3 NEED FOR THE STUDY:

 Does the receivable management of the Associate of Hydro Pressing Private

1.4 OBJECTIVES OF THE STUDY:

1.5 STATMENT OF THE PROBLEM

BTL Institute Of Technology Page 2

1.6 SCOPE OF THE STUDY.

1.7 RESEARCH METHODOLOGY:

 Debtor Turnover Ratio= Total Sales / Total Debtors.

Analysis of Variance (ANOVA):

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Alternative Hypothesis: If we want to test Accounts receivables have no significant difference on

According to M.M. Blair “Regression analysis is a mathematical measure of the average

1. Dependent variable and

1.9 RESEARCH DESIGN:

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The data source can be classified in to two categories:

 The revise was conducted only on secondary data

1.10 Review of literature:

According to Knouts, Eleonora,(2015) and yet, Management of records Receivables in an

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According to Stevenson, Paul,(2005) and yet, Credit administration strategy, credit

 Ensure that monthly cash collection targets are achieved.

According to Sims ( 2003) and yet , to depending records receivables as a reimbursement

2.2 INDUSTRY PROFILE

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2.2 COMPANY PROFILE

Associated Hydro Pressings Private Limited, an ISO/TS 16949:2002 business is an reputable

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Business Type: Supplier Manufacturer

Industry: Industrial component and parts

Background and inception of the company

Nature of the business carried on by Hydro pressings Ltd.

2.3 Vision, Mission and Quality policy

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2.5 ACHIEVEMENTS & RECOGNITION

Years Achievements and Recognition

2.6 Product/Service profile

Pressed Components For Electrical

Automotive Dashboard and Fuel Tank Parts

Cap Assembly Parts

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Fuel Flange Assembly

The various product sectors of AHP includes:

Automotive Sector Electrical Sector Export Items

2.7 Areas of Operation

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1. mark & twig weld machine

 Instrument space: newest propose device manufacturing feature.

 Testing &Inspection: Fully equipped with Latest Testing Instruments.

1. Digital veriner calipers

5. Digital bore gauge

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6. Digital height gauge

2.9 Competitors Information

Name: Crimson Interactive Pvt. Ltd.

2. V.M PRESS COMPONENTS.

Name V M Press Component, established in the year 1994 Bangalore