UNIFLEX CABLES LIMITED appointed interns to study the receivables position of their company. I was asked to analyze the data of the past six months starting from October’08 to March’09. I had to analyze the debtors’ payment pattern for that period and find out the reasons why there was a delay in receiving payments from the debtors’.
OBJECTIVE OF THE STUDY:
• Compare Actual Date of Receipt from customers with the Payment Due Date. • Find out the number of days delay in receiving the payment. • Compute the interest cost @12% for the number of days delayed. • Find out the reason for delay in case of each invoice. • Analyze the reasons. • Find out the impact of each reason. • Provide Recommendations and Suggestions.
NEED OF THE PROJECT:
In the current market situation handling the receivables is very important. The need for this research was to understand how much interest cost was lost due to delay in payment by the customers. This analysis helped the company understand its receivables collection rate. It also helped them in setting a proper procedure for future keeping this analysis as base.
SCOPE OF THE PROJECT:
UNIFLEX CABLES LIMITED intends to improve the receivables management situation of its company. The scope of the project is to find the loop holes in the collection procedure. They also intend to improve their credit control activities
We were asked to make an in depth analysis of each and every process starting from the initial stages of enquiry done by the customers to the final receipt of payment from the customers. The data was bifurcated month wise. For the convenience of analysis the data was further bifurcated on the basis of groups of managers. A detail study was done for all customers invoice wise.
The following points related to each customer were looked upon: • The payments terms with each customer. • The delivery schedule
Bibliography: BOOKS • Accounts Receivables Management - John G. Salek • Collection Management Handbook - Michael Coleman • Financial Management - I.M.Pandey • Financial Accounting – Dr.Kaustubh Sontakke WEBSITES • www.wikipedia.com • www.unicab.com • www.apar.com