Name: Purswani Deepa Niranjandas Jaya

Class: M.COM -2

Roll no: 22

Subject: ADVANCE FINANCIAL

MANAGEMENT

Topic: RECEIVABLES MANAGEMENT

Semester: 4th

Guidance: Prof. PRIYANKA BHATIA

Academic
Year: 2016-2017
 DECLARATION

I,PurswaniDeepa the student of J.W.SADHUBELLA

GIRLSCOLLEGE M.COM Part 2, hereby declare that I have
completed this project RECEIVABLES
MANAGEMENT in the academic year 2016-2017.The
Information submitted is true and original to the best of my
knowledge.

------------------------
Students Signature
 CERTIFICATE
I, PROF, PRIYANKA BHATIA hereby certify that
DEEPA PURSWANI of M.COM PART 2 Master of
Commerce of J.W.SADHUBELLA GIRLS COLLEGE
Ulhasnagar-421001 has completed the project entitled
RECEIVABLES MANAGEMENT in the academic
year 2016-17 under my guidance.
The Information submitted is true and original to the best of
my knowledge.

PROF PRIYANKA BHATIA

Signature
 J.WATUMALL SADHUBELLA GIRLS COLLEGE

UNIVERISITY OF MUMBAI

CERTIFICATE
This is to certify that DEEPA PURSWANI Master of
Commerce (semester 3) for the academic year 2016-17 has
completed the project on RECEIVABLES
MANAGEMENT under the guidance of PROF
PRIYANKA BHATIA

Prof. PRIYANKA BHATIA Prof. KIRAN MENGHANI

(Project Guide) (Co-ordinator)

Prof.Dr Vasant Mali

(Principal.I/C)

External examiner
 ACKNOWLEDGEMENT
I take this opportunity to present a sense of gratitude
towards my project guide PROF PRIYANKA BHATIA
for her excellent guidance and letting me know about
the topic provided RECEIVABLES
MANAGEMENT and personal guidance have
provided a good basic for my project.

I would also like to thank college authorities, our

principal, Co-ordinator and subject guide for
authorizing my project.
PROJECT REPORT ON:-

RECEIVABLES
MANAGEMENT
 OBJECTIVE OF THE STUDY
To examine the receivables management practices
followed by the company

To determine the relationship of receivables and sales

To Compare Actual Date of Receipt from customers with

the Payment Due Date.

To find out the reasons for the delay in getting the

Payment

To find out the impact in the working capital of the

company

To offer suggestion to improve the receivables position.

NEED & SCOPE OF THE STUDY

 Measurement is another component within account receivable
management. Traditional ratios, such as turnover will measure
how many times you were able to convert receivables over
into cash.

Measurements may need to be modified to account for wide

fluctuations within the sales cycle. The use of weights can
help ensure comparable measurements.

The following are the scope:

1. Fostering credit awareness

2. Understanding the need for a credit policy

3. Understanding financial statements

4. Applying financial analysis of financial statements

5. Allowing too much credit, or not managing the credit

policy carefully enough, could result in irrecoverable debts.
This represents a loss of income to the company, affecting
both profitability and cash flow. So credit management has to
be done.

6. To reduce administrative cost and enhance office

productivity
7. To manage your sales process more effectively by
measuring trends and analyzing performance.

INDEX
 INTRODUCTION

Sale of credit is an evitable necessity in the business

world of today. No business can exist without selling the units
in credit. The basic difference between the credit sales and
cash sales is the time gap in the receipt of cash.

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, 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, form 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 from 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