6

2.1 REVIEW OF LITERATURE

1 J oy, O.M (1978) debt owed to the firm by customers arising from sale of goods or
services in ordinary course of business."

2 Robert N. Anthony, "Accounts receivables are amounts owed to the business
enterprise, usually by its customers. Sometimes it is broken down into trade accounts
receivables; the former refers to amounts owed by customers, and the latter refers to
amounts owed by employees and others".
3 Prasanna Chandra, "The balance in the receivables accounts would be; average
daily credit sales x average collection period."

5 J oseph L. Wood is of the opinion, "The purpose of any commercial enterprise is
the earning of profit, credit in itself is utilized to increase sale, but sales must return a
profit."
6 R.K. Mishra "The first of these principles relate to the allocation of authority
pertaining to credit and collections of some specific management. The second
principle puts stress on the selection of proper credit terms. The third principles
emphasizes a through credit investigation before a decision on granting a credit is
taken. And the last principle touches upon the establishment of sound collection
policies and procedures."
7 C.R. Cook "For these reasons the credit and collection function should be placed
under the direct supervision of the individuals who are responsible for the firm's
financial position."
8 Edward T. Curtis "There are other who suggest that business firms should strictly
enforce upon their sales departments the principles that sales are insolate until the
value thereof is realised
9. R.J . Chambers "the reasonability to administer credit and collections policies may
be assigned either to a financial executive or to a marketing executive or to both of
them jointly depending upon the organizational structure and the objectives of the
firm."
7

10. Harry Gross "Two very important considerations involved in incurring additional
credit risk are: the market for a company's product and its capacity to satisfy that
market. If the demand for the seller's product is greater than its capacity to produce,
then it would be more selective in granting credit to its customers. Conversely, if the
supply of the product exceeds the demand, the seller would be more likely to lower
credit standards with resulting greater risk."

11 Martin H. Seiden, "Credit period is the duration of time for which trade credit is
extended. During this time the overdue amount must be paid by the customers."
12 Theodore N. Beckman, "Cash discount is a premium on payment of debts before
due date and not a compensation for the so called prompt payment,

13 N.K. Agarwal, 'we market out or products through established dealers. If
sometimes payment is not received within the credit period, it is just not possible to
deny discount as it would spoil business relations.'
14 Van Home, "There is the cost of additional investment in receivables, resulting
from increased sales and a slower average collection period.
15 I .M. Pandey has cited three Cs of credit termed as character, capacity and
condition that estimate the likelihood of default and its effect on the firms'
management credit standards. Two more Cs have been added to the three Cs of I.M.
Pandey, namely; capital and collateral.
16 . R.K. Mishra States, "A collection policy should always emphasize promptness,
regulating and systematization in collection efforts. It will have a psychological effect
upon the customers, in that; it will make them realize the obligation of the seller
towards the obligations granted. "
17 Hubert H. Humphrey I do not feel that we should allow a shortage of funds to
prevent cities from financing needed projects.

18 Abilash Viswanathan study the topic receivable management and financial
Reconstruction in KERALA FINANCIAL CORPORATION

19. Rathod Amith K ; a study of performance of Gurath State Financial
Corporation
8


20. Sandeep Arrora; financial project report on currency derivative

21 Robert Frost (1874-1963) ; A bank is a place where they lend you an umbrella
in fair weather and ask for it back when it begins to rain.
22 Santhi Somaraj(2009); financial project report on KSIE based on ratio analysis
23 Jigar J. Soni (2009); A project report on Comparative Analysis On Non
Performing Assets Of Private And Public Sector Banks
24 J . Ramakrishna Yadav (2008) ; A project report A Study On Ratio Analysis
With Reference To Genting Lanco Power India Private Limited .
25 Shivali Kamal(2010) ; a financial project report on Analysis of Indian cement
Industry & Financial performance of ACC CEMENT LIMITED














9

2.2 REFERENCES:
1. Joy, O.M.: Introduction to Financial Management (Madras: Institute for Financial
Management and Research, 1978), P.210.
2. Robert N. Anthony: Management Accounting, Op. Cit., P.291
3. Prasanna Chandra: Financial Management, Op. Cit., P.291
4. Harry Gross: Financing for Small & Medium sized Business, Op. Cit., P.80
5. Joseph L. Wood: Business Finance Hand Book, "Credit & Collection" in Doris
Lillian (Ed.), (New York: Prentice Hall, 1953), P.243
6. R.K. Mishra: Problems of Working Capital Op. Cit, P.94
7. C.R. Cook: Credit Policies-Impact on Sales & Profit Cost & Management,
(Hemilton, Ontario, Canada, Volume 37, October, 1963, P.387
8. Edward T. Curtis: Credit Department Organization & Operations, (New York:
American Management Association Inc., Research Study No. 34, 1959), PP.14-17,
9. R.J. Chambers: Financing Management (Sydney: The Law Book Co., Ltd., 1967),
PP.273-274
10. Harry Gross: Op. Cit., P.84
11. Martin H. Seiden: The Quality of Trade Credit, (New York: National Bureau of
Economic Research, 1964), P.39
12. Beckman, T.N.: Op. Cit., P.208
13. Agarwal, N.K.: Management of Working Capital, Op. Cit., P.54
14. James C. Van Home: Op. Cit., PP.116-117
15. I.M. Pandey : Op. Cit., P.381
16. R.K. Mishra: Op. Cit., P.99
17. Hubert H. Humphrey (1965-69) Lyndon B. Johnson
18 . Abilash Viswanathan ; Financial Restructuring and Receivables management
,P.66
19. Rathod Amith K ; a study on Gurath State Financial Corporation , P.21

20. Sandeep Arrora; financial project report ,P.42

21 Robert Frost (1874-1963) unpublished article
10

22 Santhi Somaraj(2009) project report in KSIE
23 Jigar J. Soni (2009); a project report of NPA comparison of public & private
sector banks
24 J . Ramakrishna Yadav (2008) ; A Study On Ratio Analysis With Reference To
Genting Lanco Power India Private Limited .
25 Shivali Kamal(2010) ; a financial project report on Analysis of Indian cement
Industry & Financial performance of ACC CEMENT LIMITED