Receivable Management in Sugar Industry of Kumaon Region of Uttarakhand

International Journal of Communication and Media Science

© 2017 by SSRG - IJCMS Journal

Volume 4 Issue 3

Year of Publication : 2017

Authors : Dr. Shalini Tamta and Prof. B.P. Singhal

10.14445/2349641X/IJCMS-V4I4P103

How to Cite?

Dr. Shalini Tamta and Prof. B.P. Singhal, "Receivable Management in Sugar Industry of Kumaon Region of Uttarakhand," SSRG International Journal of Communication and Media Science, vol. 4,  no. 3, pp. 4-12, 2017. Crossref, https://doi.org/10.14445/2349641X/IJCMS-V4I4P103

Abstract:

Receivables balance as shown in the balance sheet of company relates to sales made on credit for which payment has not yet received. They arise from the sale of goods and services on credit basis. A sale on credit depends upon the nature of business. To increase the sales volume, generally the credit facility will be offered of the customers which result in investment in receivables maximizes return on capital employed. A firm grants trade credit to protect its sales from the competitors and to attract the potential customers to buy its products at favorable terms trade credit creates receivable or book debts which the firm is excepted to collect in the near future. Certainly for firms in the building construction business, managing accounts receivable is important because they make up over 30% of a typical firms assets. It is conclude that average collection period in days, weeks and months, percentage of debtors to current assets and relationship between receivables, sales and profitability registered a fluctuating trend during the period under study. Hence, its relationship cannot be judged. The sugar mills must review and recast its infrastructure as well as managerial practices not only in the field of finance but also in the production. Marketing human resource and should try to match the amount of working capital with the sales trends where there is a deficit of working capital, they should try to build an adequate amount of working capital, it should be invested either in trade securities or should be used to repay borrowings. Last but not least the management should try to adopt cost reduction techniques in their firms to get over this critical situation.

Keywords:

Last but not least the management should try to adopt cost reduction techniques in their firms to get over this critical situation.

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