Debtors Management at Tata Steel & its Comparison with Other Key Players

Introduction:-

Debtors occupy an important position in the structure of current assets of a firm. They are the outcome

of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most

prominent force of modern business. It is considered as a marketing tool acting as a bridge for the

movement of goods through production and distribution stages to customers.

Till few years back, Tata Steel had a very strict policy of selling against advance payments. That was an

era of controlled economy. However, with an increasing domestic and international competition, Tata

Steel could no longer afford this policy, in order to maintain its premium position. Further in order to

capture a greater amount of market share, it was compelled to go by the industry norms and thus it

ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit

was sanctioned to every customer. The customers were required to pay the outstanding amount on the

due date.

Type of Research

The study is descriptive in nature in the sense that it focuses basically on analyzing the debtors

management at TATA STEEL.

OBJECTIVE OF THE STUDY

 The process of debtors management in TATA STEEL how the outstanding debtors are

accounted & what steps and actions are taken and should be taken to recover these dues

on time.

 Comparison of Tata Steel with other key players with respect to the debtors.

 Position of debtors in different industries.

SCOPE OF THE STUDY

The scope of this study is limited to the study of Debtors Management at TATA STEEL. The scope

encompassed with the debtors section of the company which is a part of finance and accounting

department.

sources of data Collection

Primary data are collected by interviewing customers and employees of TATA STEEL.

Secondary data are collected by using internet, magazines and text books.

Sampling

The study was done by using the age wise analysis of debtors.

Data Analysis

For this project the various analytical toos such as the ratio and other comparative studies will be used.

By the help of the MS excel various charts were made to make the analysis more simple.

Conclusions and suggestions:

Based on the data analysis and the interpretation various conclusions and suggestions will be drawn.

Limitation Of The Study

1) The time horizon is very short, so in depth analysis could be done only of few schemes.

2) The project is dependent on the relevance of the secondary data (e.g. Annual reports of various

companies) collected from the internet which might not be correct.

3) The study has been done on only a handful of data so it cannot be generalized to the entire industry.

References:

The references will be made based on the APA style of referencing.