PRESENTATION ON SUMMER INTERNSHIP PROJECT

RECEIVABLES MANAGEMENT AT TUSHACO PUMPS PRIVATE LIMITED

Objective Of The Study

The process of receivables management in Tushaco

Pumps Pvt Ltd how the outstanding debtors are accounted & what steps and actions are taken and should be taken to recover these dues on time.
To find out the initiatives taken by company to improve

the collecting dues.

Credit Policy & Terms Of Tushaco Pumps Pvt. Ltd.

The major deciding factors for framing policies at

Tushaco Pumps Pvt. Ltd. Policy differs from customer to customer. Credit terms include:Credit Period Interest Charged Discount Allowed Mode of Payment

Monitoring & Controls

Steps taken for credit monitoring & controls:
Preparation

of aging statement Preparation of reconciliation statement Calculation of DSO (Daily Sales Outstanding)

Ageing Statement

Reconciliation of receivables
Reconciliation statement :

Trend of account receivables

PARTICULARS Sundry Debtors Provision for Bad Debt Net Debtors Provision as a % of Sundry Debtors March 11 216076 (8109) 207967 3.75 March 10 129457 (10250) 119207 7.91 March 09 134446 (7568) 126878 5.62

Trend Of Debtors Turnover Ratio

PARTICULARS Sales Debtors Debtors Collection Period DTR 3.49 4.68 3.91 MARCH 2011 753974 216076 105 MARCH 2010 606351 129456 78 MARCH 2009 525888 134446 93

DSO Kaizen
Objectives of DSO Kaizen To reduce the collection period from 90 days to 60 days. To revise the documentation process. To overcome the technical issues. Major Problems Documentation Issue Contracting Issue Technical issue

Overall Finding
Implementation of the SAP program

forecasted sale for achieving DSO

reconciliation issue Fixed credit policy

Suggestions
Companies should monitor the BHEL orders

Implementation of Kaizen Event

Reduce the DSO from 90 days to 60 days Dont have discount policy for advance payment

Selection of customers for credit facility