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INTRODUCTION
Debtor management means the process of decisions relating to the investment in business
debtors. In credit selling, it is certain that we have to pay the cost of getting money from
debtors and to take some risk of loss due to bad debts. To minimize the loss due to not
receiving money from debtors is the main aim of debtor management.
Main elements or dimensions of Debtors management
For effective debtor management, following elements should be analyzed
. !redit policy
!redit policy effects debtor management because it guides management about how to
control debtors and how to make balance between liberal and strict credit. If company does
not restrict to sell the products on credit after a given limit of sale. This liberated credit policy
will increase the amount of sale and profitability. "ut risk will also increase with increasing
of sale. If we sell the good to those debtors whose capability to pay is not good, then it is
possible that some amount will become bad debts. !ompany can increase the time limit for
paying by such debtors. #n the other hand, if company$s credit policy is strict, then it will
increase li%uidity and security, but decrease the profitability. &o, finance manager should
make credit policy at optimum level where profitability and li%uidity will be e%ual. 'e can
show it graphically.
&ub part of credit policy
(a) *ength of !redit period
*ength of credit period is also an element that affects decisions of finance manager
relating to manage debtors. It is the time which allows to debtor to pay his debt for
purchasing goods on credit from vendor. Finance manager can increase the length of credit
period according to reputation of customers.
(b) !ash discount
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!ash discount is techni%ue to get money fastly from debtors. It is cost of investment
in credit sale.
+. !redit policy analysis
It means decision relating to analysis of credit policy. valuation and analysis of
credit policy is based on following factors.
a) !ollection of debtor$s information
For analysis the financial position of debtors, we have to collect the information
relating to debtors. This information can be obtained from customer$s financial statements of
previous years, bank reports, and information given by credit rating agencies. These
information will be useful for deciding where debtors will our debt or not. It will also be
useful for knowing capability to pay the debt.
b) !redit Decisions
-fter collection and analysis the debtor$s information, manager has to decide whether
company should facilitate to sell goods on credit or not. If company sells the goods on credit
to particular debtor, then at what level it will be sold after seeing his position. For this
manager can fi the standard for providing goods on credit. If a particular debtor is below
than given standard, then he should not accept his proposal of buying goods on credit.
/. Formulation !ollection 0olicy
For getting fund fastly from debtor, the following steps will be taken under
formulation of collection policy.
a) &end reminding letter for paying debt
b) Take the help of debt collection agency for getting bad debt.
c) To do legal action against bad debtors.
d) To re%uest personally to debtor to pay his dues on mobile or email.
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e) Finance manager should monitor collection position through average collection
period from past sundry
Debtor and their turnover ratio.
f) To make ageing schedule. &le of ageing schedule is given below. -ccounts
receivable is an accounting transaction which deals with the billing of customer who owes
money to a person, company or organization for goods and services that has been provided to
the customers. In most business entities this is typically done by generating an invoice and
mailing or electronically delivering it to the customer, who in turn must pay it within an
established timeframe called credit or payment terms.
-n eample of a common payment term is 1et /2, meaning payment is due in the amount of
the invoice /2 days from the date of invoice. #ther common payment terms include 1et 34
and 1et 52 but could in reality be for any time period agreed upon by the vendor and the
customer.
#n a company6s balance sheet, accounts receivable is the amount that customers owe to that
company. &ometimes called trade receivables, they are classified as current assets assuming
that they are due within one year. To record a 7ournal entry for a sale on account, one must
debit a receivable and credit a revenue account. 'hen the customer pays off their accounts,
one debits cash and credits the receivable in the 7ournal entry. The ending balance on the trial
balance sheet for accounts receivable is always debit.
-ccounts receivable departments use the sales ledger. #ther types of accounting transactions
include accounts payable, payroll, and trial balance.
- debt management plan is a formal agreement between a debtor and creditor(s). Debt
Management 0lans help reduce outstanding, unsecured debts at a reduced level over a fied
period of time to help regain control of finances.
Debt Management 0lans are individually tailored based on what can be realistically afforded
on a monthly basis. To achieve an accurate figure, an income and ependiture test will
establish what monies are coming into the household and what is being paid out. Income and
ependiture includes everything, such as rent8mortgage, secured loans, utility bills, and
essential living epenses (food 9 T: license etc). #nce the income and ependiture is
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completed, the leftover amount is your disposable income which is divided amongst creditors
through a Debt Management company. 'orking capital (abbreviated '!) is a financial
metric which represents operating li%uidity available to a business, organization or other
entity, including governmental entity. -long with fied assets such as plant and e%uipment,
working capital is considered a part of operating capital. 1et working capital is calculated as
current assets minus current liabilities. It is a derivation of working capital, that is commonly
used in valuation techni%ues such as D!Fs (Discounted cash flows). If current assets are less
than current liabilities, an entity has a working capital deficiency, also called a working
capital deficit.
- company can be endowed with assets and profitability but short of li%uidity if its assets
cannot readily be converted into cash. 0ositive working capital is re%uired to ensure that a
firm is able to continue its operations and that it has sufficient funds to satisfy both maturing
short;term debt and upcoming operational epenses. The management of working capital
involves managing inventories, accounts receivable and payable, and cash.!ompany can sell
the goods on credit or cash. !ash sale is inflow of cash and it is controlled under cash flow
analysis. "ut credit sale creates sundry debtors. !ompany has to receive money from them. If
company starts to sell on return of cash, then it decreases the level of company$s sale and
profitability. #n the other side, if company promotes credit sale, it can increase the risk of
bad debts. &o, it is re%uired to control and to manage debtors.
Meaning of Debtor management
Debtor management means the process of decisions relating to the investment in business
debtors. In credit selling, it is certain that we have to pay the cost of getting money from
debtors and to take some risk of loss due to bad debts. To minimize the loss due to not
receiving money from debtors is the main aim of debtor management.
Main elements or dimensions of Debtors management
For effective debtor management, following elements should be analyzed
!redit policy
!redit policy effects debtor management because it guides management about how to control
debtors and how to make balance between liberal and strict credit. If company does not
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restrict to sell the products on credit after a given limit of sale. This liberated credit policy
will increase the amount of sale and profitability. "ut risk will also increase with increasing
of sale. If we sell the good to those debtors whose capability to pay is not good, then it is
possible that some amount will become bad debts. !ompany can increase the time limit for
paying by such debtors. #n the other hand, if company$s credit policy is strict, then it will
increase li%uidity and security, but decrease the profitability. &o, finance manager should
make credit policy at optimum level where profitability and li%uidity will be e%ual. 'e can
show it graphically.
BOOK KEEPING FOR ACCOUNTS RECEIVABLE
!ompanies have two methods available to them for measuring the net value of accountreceivables, which is computed by subtracting the balance of an allowance account from the
accounts receivable account.
The first method is the allowance method, which establishes a liability account, allowance for
doubtful accounts, or bad debt provision, that has the effect of reducing the balance for
accounts receivable. The amount of the bad debt provision can be computed in two ways ;
either by reviewing each individual debt and deciding whether it is doubtful (a specific
provision) or by providing for a fied percentage, say +
The term receivable management is defined as ?debt owed to the firm by !"tomer
#ri"i$% from the "#&e of %ood"' "er(ie" i$ the ordi$#ry o!r"e of b!"i$e"".@ The
receivable represents an important component of the current assets of the firm.
=eceivables may be known as accounts receivables, trade creditors or customer
receivable. 'hen a firm its products 8 services and does not receive cash for it
immediately, the firm has said to be granted trade credit to the customers. Trade credit
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thus creates receivable 8 book debts, which the firm is epected to collect in near future.
-ccounts receivable are thus amounts due from customers, which bear no interest in
essence, a company is providing no cost financing to the customer to encourage the
purchase of the company$s product8services.
The etension of credit can be 7ustified only if the increase in the sales and related cash
collections (discounted for the time until collection) eceeds the amount otherwise cash
generated under a ?cash only@ policy.
These customer from whom receivable or book debt are to be collected in the future are
called as ?tr#de debtor"@ or simply as ?debtor@ and represents the firm$s claim on assets.
Trade debtors are epected to be converted into cash within a short period and are
included in the current assets. &ince receivables often accounts for the significance portion
of total assets, it re%uires careful attention and ade%uate management. It is skill demanding
field because the customer has to be bestowed with trust along with a continuous
vigilance.
COSTS)
The ma7or categories of cost associated with etension of credit and receivable areA
!ollection cost
!apital cost
Delin%uency cost
Default cost
COLLECTION COST)
These costs are administrative cost incurred in collecting the receivable from the customers.This category includesA
. -dditional epenses on the creation and maintenance of a credit department with staff,
accounting, records, stationary, postage and other related items.
+. penses involved in ac%uiring credit information either through outside specialist
agencies or by the staff of the firm itself.
CAPITAL COST)
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-ccounts receivables, being an investment in current assets, have to be financed involving a
cost. There is a time lag between the sale of goods to, and the payment by, the customers.
Meanwhile the firm has to pay employees and suppliers of raw material i.e. the firm should
arrange for additional funds to meet its own obligations. Thus, the cost on the use of additional
capital to support credit sales is therefore apart of the cost of etending credit .
DELIN*UENC+ COST)
This cost arises out of the failure of the customer to meet their obligations when payment on
credit sales becomes due after the epiry of the period of credit. &uch cost includesA
"locking up of funds for an etended period.
!ost associated with steps that have to be initiated to collect the overdue, such as
reminders and other collection efforts, legal charges, where necessary , and so on.
DEFAULT COST
In addition of the above cost the firm may not be able to recover the overdue because of
inability of the customers. &uch debts are treated as bad debts and have to be written off, as
they cannot be realized. Though a concern may be able to reduce bad debts through efficient
collection mechanism, one cannot altogether rule out the possibility of this cost.
BENEFITS)
-part from the cost, another factor that has a bearing on accounts receivable is the benefit
emanating from credit sales. The benefits areA
?The i$re#"ed "#&e #$d thereby ,rofit"@
Bowever, the benefits would depend upon the credit policy adopted by the firm, i.e., a
conservative or liberal credit policy. The impact of liberal credit policy is likely to have two
formsA;
i. &ales epansion
ii. &ales retention
In sales epansion a firm may grant credit either to increase sales or to attract new customer.
This motive is growth orientedC on the other hand the sales retention the firm may grant credit
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to protect its current sales against emerging competition. 1o matter whatever is the motive, the
result the result of increased sales is the increase the profit of the firm.
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SO-E BASIC DEFINITION
'hen the buying and selling process steps forward and the customer is not able to pay the total
amount, the amount which they are not able to pay at the same time of buying the amount is
known as DEBT.
In the balance sheet of companies those customers are DEBTORS. In their balance sheet
company is a CREDITOR.
#n the basis of market performance and credit rating company decides the time period of
payback of the amount. This time period is known as CREDIT PERIOD.
The total amount called as debt is called as OUTSATNDING.'hen this total outstanding is
not paid within the credit period the amount remained to be collected is called as OVERDUE.
The total overdue is divided in different parts such as overdue within /mo$th"0 from /12
mo$th"0 2134 mo$th"0 3 to 4 yr"0 41/ yr"0 #bo(e /yr"0 #$d #bo(e 5 yr".
'hen the customer is not able to pay back the due after five years then this amount is known
as BAD DEBTS.
BI* has kept some amount for this type of time of contingencies. This amount use for
decreasing the effect of bad debts is called as PROVISION.
CURRENT ASSETSare those assets which can be converted into cash within the period of
34 mo$th"starting from the company$s financial year.
CURRENT LIABILITIESare those liabilities which are repaid within 34 mo$th" starting
from company$s financial year.
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RESEARC6 -ET6ODOLOG+
TG0 #F =&-=!B
The study is descriptive in nature in the sense that it focuses basically on analyzing the
debtor$s management at BI*.
=-TI#& -= H&D T# TBI& 0=#!T '#=JA
TH=1#:= =-TI#&
!H==1T =-TI#
KHI!J =-TI#&
D-T- !#**!TI#1&A
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2
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OB7ECTIVE OF T6E STUD+
The process of debtor$s management in BI* how the outstanding debtors are
accounted 9 what steps and actions are taken and should be taken to recover thesedues on time.
!omparison of BI* with other key players with respect to the debtors.
0osition of debtors in different industries.
Bence the firm is re%uired to allow the credit sale in order to epand its sales volume. The
increase in sales is also essential to increase profitability.
The sales of goods have become an essential part of the modern competitive economic
system.
In fact credit sales and receivables are treated as a marketing tool to aid the sale of goods.
?To promote sales and profit until that point is reached where the return on investment in
further funding of receivable is less than the cost of funds raised to finance that additional
credit(i.e. cost of capital)@
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NEED FOR T6E STUD+
Trade credit is an important marketing tool. - policy of trade credit is followed
nearly in all capital intensive industries either for sales epansion and 8or sales
retention. Hnder any circumstances investment in receivable is growth oriented.
-ARKET FACTOR)Market factors like price, forces accompany to grant credit.For eample, BI* whose price is comparatively higher is forced to grant credit inorder to maintain sale.
CO-PETITION)In view of stiff competition from both domestic and internationalplayers, the company is left with no option then to grant credit. !ompetition is
another vital factor, which affects the credit policy of a firm, and BI* is not an
eception.
CUSTO-ER8S RE*UIRE-ENT) -s the market has changed to the buyer$s
market, the customers have become kings. If the customer epects credit and is
worthy of it, he gets it.
-ARKETING TOOL)T o push up sales of slow moving products and encourage
bulk purchase of fast moving products, credit plays an effective role in this contet.
RESESSIONAR+ ECONO-IC CONDITIONS) *i%uidity crunch forces thecompany to grant credit.
+
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SCOPE OF T6E STUD+The scope of this study is limited to the study of Debtors Management at BI*. The scope
encompassed with the debtors section of the company which is a part of finance and
accounting department.
&ources of data !ollection
Primary data are collected by interviewing customers and employees of BI*
Secondary dataare collected by using internet, magazines and tet books.
+.4 &ling
The study was done by using the age wise analysis of debtors.
/
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LI-ITATION OF T6E STUD+
) The time horizon is very short, so in depth analysis could be done only of fewschemes.
+) The pro7ect is dependent on the relevance of the secondary data (e.g. -nnual reports
of various companies) collected from the internet which might not be correct.
/) The study has been done on only a handful of data so it cannot be generalized to the
entire industry.
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LITERATURE REVIE9
!ompany can sell the goods on credit or cash. !ash sale is inflow of cash and it is
controlled under cash flow analysis. "ut credit sale creates sundry debtors. !ompany has to
receive money from them. If company starts to sell on return of cash, then it decreases the
level of company$s sale and profitability. #n the other side, if company promotes credit sale,
it can increase the risk of bad debts. &o, it is re%uired to control and to manage debtors.
Meaning of Debtor management
Debtor management means the process of decisions relating to the investment in business
debtors. In credit selling, it is certain that we have to pay the cost of getting money from
debtors and to take some risk of loss due to bad debts.
To minimize the loss due to not receiving money from debtors is the main aim of debtor
management.
Main elements or dimensions of Debtors management
For effective debtor management, following elements should be analyzed
. !redit policy
!redit policy effects debtor management because it guides management about how to control
debtors and how to make balance between liberal and strict credit. If company does not
restrict to sell the products on credit after a given limit of sale. This liberated credit policy
will increase the amount of sale and profitability. "ut risk will also increase with increasing
of sale. If we sell the good to those debtors whose capability to pay is not good, then it is
4
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possible that some amount will become bad debts. !ompany can increase the time limit for
paying by such debtors. #n the other hand, if company$s credit policy is strict, then it will
increase li%uidity and security, but decrease the profitability. &o, finance manager should
make credit policy at optimum level where profitability and li%uidity will be e%ual. 'e can
show it graphically.
-ccounts receivable are a legally enforceable claim for payment to a business by its
customer8 clients for goods supplied and8or services rendered in eecution of the customer$s
order. These are generally in the form of invoices raised by the business and delivered to the
customer for payment within an agreed time frame. -ccounts receivable are shown in the
balance sheet as asset. It is one of a series of accounting transactions dealing with the billing
of a customer for goods and services that the customer has ordered. These may be
distinguished from notes receivable, which are debts created through formal legal instruments
called promissory notes.
!ontents Lhide
#verview
+ 0ayment terms
/ -ccounts =eceivable -ge -nalysis
3 "ookkeeping
4 &pecial uses
5 =elated accounting topics
&ee also
E 1otes and references
#verview
5
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-ccounts receivable represents money owed by entities to the firm on the sale of products or
services on credit. In most business entities, accounts receivable is typically eecuted by
generating an invoice and either mailing or electronically delivering it to the customer, who,
in turn, must pay it within an established timeframe, called credit termsL+ or payment terms.
The accounts receivable department uses the sales ledger, because a sales ledger normally
recordsAL/
The sales a business has made.
The amount of money received for goods or services.
The amount of money owed at the end of each month varies (debtors).
The accounts receivable team is in charge of receiving funds on behalf of a company and
applying it towards their current pending balances.
!ollections and cashiering teams are part of the accounts receivable department. 'hile the
collections department seeks the debtor, the cashiering team applies the monies received.
0ayment terms
-n eample of a common payment term is 1et /2 days, which means that payment is due at
the end of /2 days from the date of invoice. The debtor is free to pay before the due dateC
businesses can offer a discount for early payment. #ther common payment terms include 1et
34, 1et 52 and /2 days end of month. The creditor may be able to charge late fees or interest
if the amount is not paid by the due date.
"ooking a receivable is accomplished by a simple accounting transactionC however, the
process of maintaining and collecting payments on the accounts receivable subsidiary
account balances can be a full;time proposition. Depending on the industry in practice,
accounts receivable payments can be received up to 2 > 4 days after the due date has been
reached. These types of payment practices are sometimes developed by industry standards,
corporate policy, or because of the financial condition of the client.
&ince not all customer debts will be collected, businesses typically estimate the amount of
and then record an allowance for doubtful accountsL3 which appears on the balance sheet as
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a contra account that offsets total accounts receivable. 'hen accounts receivable are not paid,
some companies turn them over to third party collection agencies or collection attorneys who
will attempt to recover the debt via negotiating payment plans, settlement offers or pursuing
other legal action.
#utstanding advances are part of accounts receivable if a company gets an order from its
customers with payment terms agreed upon in advance. &ince billing is done to claim the
advances several times, this area of collectible is not reflected in accounts receivables.
Ideally, since advance payment occurs within a mutually agreed;upon term, it is the
responsibility of the accounts department to periodically take out the statement showing
advance collectible and should be provided to sales 9 marketing for collection of advances.
The payment of accounts receivable can be protected either by a letter of credit or by Trade
!redit Insurance
-ccounts =eceivable -ge -nalysis
-n -ccounts =eceivable -ge -nalysis, also known as the Debtors "ook is divided in
categories for current, /2 days, 52 days, 2 days or longer. The analysis or report is
commonly known as an -ged Trial "alance. !ustomers are typically listed in alphabetic
order or by the amount outstanding, or according to the company chart of accounts. Nerobalances are not usually shown.
"ookkeepingLedit
#n a company6s balance sheet, accounts receivable are the money owed to that company by
entities outside of the company. -ccount receivables are classified as current assets assuming
that they are due within one calendar year or fiscal year. To record a 7ournal entry for a sale
on account, one must debit a receivable and credit a revenue account. 'hen the customer
pays off their accounts, one debits cash and credits the receivable in the 7ournal entry. The
ending balance on the trial balance sheet for accounts receivable is usually a debit.
"usiness organizations which have become too large to perform such tasks by hand (or small
ones that could but prefer not to do them by hand) will generally use accounting software on
a computer to perform this task.
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!ompanies have two methods available to them for measuring the net value of accounts
receivable, which is generally computed by subtracting the balance of an allowance account
from the accounts receivable account.
The first method is the allowance method, which establishes a contra;asset account,
allowance for doubtful accounts, or bad debt provision, that has the effect of reducing the
balance for accounts receivable. The amount of the bad debt provision can be computed in
two ways, either () by reviewing each individual debt and deciding whether it is doubtful (a
specific provision)C or (+) by providing for a fied percentage (e.g. +
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&ub part of credit policy
(a) *ength of !redit period
*ength of credit period is also an element that affects decisions of finance manager relating to
manage debtors. It is the time which allows to debtor to pay his debt for purchasing goods on
credit from vendor. Finance manager can increase the length of credit period according to
reputation of customers.
(b) !ash discount
!ash discount is techni%ue to get money fastly from debtors. It is cost of investment in credit
sale.
+. !redit policy analysis
It means decision relating to analysis of credit policy. valuation and analysis of credit policy
is based on following factors.
a) !ollection of debtor$s information
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For analysis the financial position of debtors, we have to collect the information relating to
debtors. This information can be obtained from customer$s financial statements of previous
years, bank reports, and information given by credit rating agencies. These information will
be useful for deciding where debtors will our debt or not. It will also be useful for knowing
capability to pay the debt.
b) !redit Decisions
-fter collection and analysis the debtor$s information, manager has to decide whether
company should facilitate to sell goods on credit or not. If company sells the goods on credit
to particular debtor, then at what level it will be sold after seeing his position. For this
manager can fi the standard for providing goods on credit. If a particular debtor is below
than given standard, then he should not accept his proposal of buying goods on credit.
/. Formulation !ollection 0olicy
For getting fund fastly from debtor, the following steps will be taken under formulation of
collection policy.
a) &end reminding letter for paying debt
b) Take the help of debt collection agency for getting bad debt.
c) To do legal action against bad debtors.
d) To re%uest personally to debtor to pay his dues on mobile or email.
+
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e) Finance manager should monitor collection position through average collection period
from past sundry
debtor and their turnover ratio.
f) To make ageing schedule. &le of -geing schedule is given belowManaging the debtors
for 6IL is an important and chief function of the sales accounts division of finance and
accounts. -ll the transactions of commercial nature are dealt with by this department in a
detailed outline frame of working. The debtors arise each month out of the sales made on
credit and suitable feeding of the re%uired figures has to be made once in a month. This
function is very much a difficult task owing to the various subsidiaries and associate
companies being controlled by TISCOitself.
The activities of each of the companies are diverse in operations and re%uire different policy
formulations and strategies for complying with the eisting market re%uirements. "ut they are
controlled in a centralized manner so that they give an actual overview of the standing of the
company. The profitability of each of the above is e%ually important to arrive at a consensus
for finding out the actual earnings and future prospects. -s such each of the company under
subsidiary and associate is incorporated under distinct centres as Profit Ce$tre.
To flatten the organizational structure and developed authority and responsibility for the
%uicker responsiveness to changing market conditions and greater initiative in dealing with
different target markets, BI* has brought in the concept of profit centre. For all practical
purpose, each profit centre functions as a separate company within the hold of BI*. From the
debtors management point of view also each profit centre has the responsibility of appraising
and dealing with its customers. Bowever the overall control is centralized and is in the hands
of the finance department. The main function which lies at the hands of BI*, amshedpur is
to report such standings of the actual debtors as on a particular date to the -D in the form of
a monthly report. The figures thus arrived at give an overview of which profit centrescontribute the most to the debtor$s standing and the specific reasons for the same.
++
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"eing a steel manufacturing concern, BI* is mainly concerned with the actual debtors arising
for the following profit centresA
STEEL
9IRE DIVISIONS
FERRO ALLO+S AND -INERALS DIVISION
TUBES DIVISION
BEARINGS
ach of the above profit centers have debtors of their own which are handled and managed ina centralized manner. For an eample, tubes division is one of the most important division
which has the maimum contribution to the total sales taking together all the profit centers at
a point of time. It has various parties of its own as debtors such as ESSAR STEEL
LI-ITED0 BLUE STAR LI-ITED0 6+DERABAD INDUSTRIES LI-ITED0
-EC6ATRONICS and many debtors. - database relating to the different parties is
maintained in a pre specified format which helps in understanding the actual standing of the
debtor from the point of view of the actual sale being made to the party on credit till date.
This format helps in maintaining the records in a form which helps in 7udging the actual
ageing of the debtors and the amount being recovered from the total debt. "y ageing we mean
to give an actual definition to the debtors in terms of how old has the debt been to him and
thereby categorizing him for the purpose. - same prescribed format is used by all the profit
centers for managing their respective debtors.
E:PLANATION
Through this preparation we get to know the actual total debtors figures and the ma7or parties
that have contributed to the increase and decrease in the debtors as when compared with the
previous financial period. It mainly emphasizes upon the total debtors figures and the overdue
debtors and their ma7or contributors in the form of party names and figures. It also gives all
list of indications for the debtors whose standing are for periods beyond si months. This
reporting is crucial for the reason that it gives the management the indicative areas for focus,
+/
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the reasons for a rise in debtors and suitable control for future standing which is profitable to
the company as a whole.
This chapter provides related literature on debtor management and business
performance of an organization .It covered what scholars have written about them
from selected published 7ournals, on internet and tet books.
-ET6ODS OF DEBTOR -ANAGE-ENT)
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.
It is generally believed that credit policy stimulates sales as it helps in retaining
eisting customers and winning clients from rivals. Trade debtors represent
amounts owed to the firm as a result of credit sale of goods or services in the
ordinary course of business. The key function of credit management is to optimize
the sales at the minimum possible cost of credit.
RATIONALE OF CREDIT
-ccording to Jakuru ulius (+22), firms use credit as a marketing weapon for
epanding business in a declining industry. In a growing competitive market, credit
is used to increase a firms markets share of minimize erosion of the firm$s
market share by maintaining the firms share and maintaining the firm market
share. Further more, it helps to retain old customers and create new ones by winingthem away from competitors. To him, credit etension is a desirable option on
which companies can do business in a better way hence gaining competitive
advantage.
Jakuru ulius goes further to define credit policy as a set of polices of action
designed to manage costs associated with credit, while maimizing the benefits
from it. - firm may follow a limited or a stringent credit policy.
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T+PE OF CREDIT POLIC+
Jakuru ulius (+22), identifies + types of credit policiesC *enient and &tringent
!redit 0olicies. To him, a lenient credit policy tends to give credit to customer on
very liberal terms and standards. Be further notes that a stringent credit policy is
highly selective and gives credit to only those customers whose credit worthiness
has been ascertained and who are financially strong.
Co"t" #""oi#ted with e;te$di$% redit
"oggess '.0 (5), noted that carrying costs are those costs of capital measured
as the company$s internal re%uired rate of return on funds committed in receivables
where as normal credit costs are those costs for supporting the credit function, for
eample legal collections.
=osse and 'aster field (EE), distinguished two costsC the carrying costs and
opportunity costs.
To them, carrying costs are those associated with credit etension and investment
in receivables. They include the re%uired rate of return from bad debts and the
costs associated with credit analysis, monitoring and collection efforts. They
further argued that opportunity costs are costs related to loss of sales and as a result
of refusing to grant credit.
-ccording to :an Borne (E), a firm should evaluate its credit policy in terms of
returns and costs. The costs involved includeC the selling costs, administration
costs, collection costs and bad debt losses. :an Born however identifies these costs
as involving in the implementation of credit sales. Be further emphasizes that a
firm can realize sales because of credit sales, which leads to larger profits.
Jakuru ulius (+22) noted that though etending credit is beneficial, it involves
costs which are inevitable in some cases, and these costs includeC collection costs,
bad debt losses, administrative costs and opportunity costs. To him, collection
costs are incurred at the time of collection of receivables. These could be in form
of sending reminding letters, meeting telephone charges and making reminders
through the press in some cases.
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NATURE OF CREDIT MANAGEMENT POLICIES
!redit management policies are comprehensive set procedures and guidelines that
must be followed by banks in lending practices to achieve their goals (-gu, E).
The term credit policy is used to refer to the combination of three decision
variables i.e. credit standards, credit terms and collection efforts on which the
financial manager has influence. !redit standards are criteria to decide the types of
customers to whom goods could be sold on credit. If a firm has more slow; paying
customers, its investment in accounts receivable will increase. The firm will also
be eposed to higher risk of default.
-ccording to 0andey (+22), in order to analyze customers and set standards, two
aspects are consideredC the average collection paid and the default rate. To him,
average collection paid refers to the period in which debts remain outstanding, and
default rate is the ratio of uncollected receivables to the total receivables.
0andey (+22) identifies 4!$s of credit as a measurement in setting standards. The
4 !$s includeC character, capacity, condition, capital, and collateral.
Ch#r#ter
-ccording to 0andey (4) the credit manager attempts to ascertain the
applicant$s willingness to pay and settle his or her obligation. Much consideration
is accorded to the moral factor. -s much as possible, the financial manger should
ascertain whether the customer will make honest efforts to meet the credit
obligations of the firm. In making analyses about the customer$s character, the firm
should consider some of the aspect from the clients. These aspects includeC bank
references, marital status, attachment to government agencies, level of education
contact operational stability and historical background.
-ccording to 0andey (+22), !apacity is the ability of a customer to pay credit
advanced to him or her.
In analysis his or her capacity, the manager should look at financial statements,
previous eperience with the firm, bank and trade references, amount and purpose
of credit.
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Jakuru, (+22) also considers that factors like profit margin, cash flows, acid
taste ratio of business, and the duration one has been in the business should be
looked while analyzing capacity.
Co$ditio$
-ccording to Jakuru (+22), this includes the assessment of prevailing economic
and other factors like social > political which may affect the customer$s ability to
pay. In addition, where customers incur substantially larger transport costs, one
could be disruptive in etending credit to such. This is because this high cost
reduces their profits which may affect their payments. -ll these views are shared
by 0andy (+22).
-ccording to 0andey (4), one should evaluate the customer$s financial position
by analyzing ratios and trends in cash and working capital positions. The attributes
to consider are how much the owner of the business has put in the business as this
determines the stake of the person in the business. 0andey (+22) contends that, in
some situations, the applicant may be re%uired to offer securities before credit is
advanced. The security should be safe and easily marketable.
Credit term"
-ccording to 0andey (4), credit terms are stipulations under which a firm
grants credit to its customers. To him, immediately after the credit manager has
verified the credit applicant using set credit standards, decisions to etend
credit is made . The firm should try as much as possible to make terms more
attractive to act as an incentive to clients without incurring unnecessary high
levels of bad debts. Therefore, the terms used should conform to the average
industrial terms and they include credit period and cash discount.
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Co&&etio$ ,roed!re"
"alstansky (/) noted that collection procedures are efforts applied in order to
accelerate collections from slow paying customers and to reduce bad debt losses.
!ollection procedures could be defined for each credit customer. This should be
done in an organized manner that will accelerate cash receipts without endangering
the relationship with the debtor.
Jakuru (+22), gives a step by step procedure that is essential in collecting dues
from slow paying customers and these includeC reminders, final write;off, insuring
debtors, and factoring of debtors.
4.3.5 De"i%$i$% redit ,o&iy
Jakuru ulius (+22), contends that, the only a way a firm can control its sales is
through altering its credit policy. Be says that credit policy is based on three
controllable variables which are credit standards credit terms, and collection
procedure.
Credit I$(e"ti%#tio$" #$d A$#&y"i"
:an Borne (E), emphasizes that, credit analysis considers the character of the
company, its management and the financial strength of the firm in order to avoid
imbalances. To him, credit analysis can be done by using techni%ues like credit
scoring where characteristic of an applicant are %uantitatively rated and credit
decisions made on the basis of the total score. !haracteristics like the marital
status, level of education occupational stability can be rated.
Credit Limit
-ccording to Jakuru ulius (+22), credit limit is the maimum of credit the firm
can etend to customers at any point of time. Be suggests that the analyst should
carefully sensitize the amount of contemplated sales and the customer$s financialstrength and that if a problem arises, it may make it inevitable to review the credit
limit.
Credit "t#$d#rd" "etti$% i$ ,r#tie
-ccording to Jakuru ulius (+22), in order to analyze customers and set
standards, two aspects are consideredC the average collection paid and the default
rate. To him, average collection paid refers to the period in which debts remain
outstanding, and default rate is the ratio of uncollected receivables to the total
receivables.
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Credit term"
-ccording to 0andy (4) credit terms are stipulations under which a firm grants
credit to its customers. To him, immediately after the credit manager has verified
the credit applicant using set credit standards, decisions to etend credit is made.
The firm should try as much as possible to make terms more attractive to act as an
incentive to clients without incurring unnecessary high levels of bad debts.
Therefore, the terms used should conform to the average industrial terms and the
include credit period and cash discount.
Co&&etio$ ,roed!re"
"alstansky (/) noted that collection procedures are efforts applied in order to
accelerate collections from slow paying customers and to reduce bad debt losses.
!ollection procedures could be defined for each credit customer. This should be
done in an organized manner that will accelerate cash receipts without endangering
the relationship with the debtor.
Jakuru, (+22), gives a step by step procedure that is essential in collecting dues
from slow paying customers and these includeC reminders, final write;off, insuring
debtors, and factoring of debtors.
4.4 Defi$itio$ of b!"i$e"" ,erform#$e
&toner () describes business performance as the ability to operate efficiently,
profitably, survives, grow and lead to opportunities and threats.
&toner () singled out the production process efficiently as the key factor
governing business performance. There is also emphasis upon innovation for
profitability, assets management and overall entrepreneurship for achieving lastingperformance.
!onsidering the definitions therefore, business performance can be defined as in
terms of profitability, li%uidity, and growth and epansion prospects for the
business.
-ccording to Dean, (3), #rganizationsC the term Oorganizational performance$
is used comfortably in three time; senses ; the past, present, and the future. In other
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words, performance can refer to something completed, or something happening
now, or activities that prepares for new needs.
Managing the debtors for T#t# "tee&is an important and chief function of the sales accounts
division of finance and accounts. -ll the transactions of commercial nature are dealt with by
this department in a detailed outline frame of working. The debtors arise each month out of
the sales made on credit and suitable feeding of the re%uired figures has to be made once in a
month. This function is very much a difficult task owing to the various subsidiaries and
associate companies being controlled by TISCOitself.
The activities of each of the companies are diverse in operations and re%uire different policy
formulations and strategies for complying with the eisting market re%uirements. "ut they are
controlled in a centralized manner so that they give an actual overview of the standing of the
company. The profitability of each of the above is e%ually important to arrive at a consensus
for finding out the actual earnings and future prospects. -s such each of the company under
subsidiary and associate is incorporated under distinct centres as Profit Ce$tre.
To flatten the organizational structure and developed authority and responsibility for the
%uicker responsiveness to changing market conditions and greater initiative in dealing with
different target markets, Tata steel has brought in the concept of profit centre. For all
practical purpose, each profit centre functions as a separate company within the hold of Tata
steel. From the debtors management point of view also each profit centre has the
responsibility of appraising and dealing with its customers. Bowever the overall control is
centralized and is in the hands of the finance department. The main function which lies at thehands of Tata steel, amshedpur is to report such standings of the actual debtors as on a
particular date to the -D in the form of a monthly report. The figures thus arrived at give an
overview of which profit centres contribute the most to the debtor$s standing and the specific
reasons for the same.
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"eing a steel manufacturing concern, Tata steel is mainly concerned with the actual debtors
arising for the following profit centresA
STEEL
9IRE DIVISIONS
FERRO ALLO+S AND -INERALS DIVISION
TUBES DIVISION
BEARINGS
ach of the above profit centers have debtors of their own which are handled and managed in
a centralized manner. For an eample, tubes division is one of the most important division
which has the maimum contribution to the total sales taking together all the profit centers at
a point of time. It has various parties of its own as debtors such as ESSAR STEEL
LI-ITED0 BLUE STAR LI-ITED0 TATA C6E-ICALS LI-ITED0
-EC6ATRONICS and many debtors. - database relating to the different parties is
maintained in a pre specified format which helps in understanding the actual standing of the
debtor from the point of view of the actual sale being made to the party on credit till date.This format helps in maintaining the records in a form which helps in 7udging the actual
ageing of the debtors and the amount being recovered from the total debt. "y ageing we mean
to give an actual definition to the debtors in terms of how old has the debt been to him and
thereby categorizing him for the purpose. - same prescribed format is used by all the profit
centers for managing their respective debtors.
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E:PLANATION
Through this preparation we get to know the actual total debtors figures and the ma7or parties
that have contributed to the increase and decrease in the debtors as when compared with the
previous financial period. It mainly emphasizes upon the total debtors figures and the overdue
debtors and their ma7or contributors in the form of party names and figures. It also gives all
list of indications for the debtors whose standing are for periods beyond si months. This
reporting is crucial for the reason that it gives the management the indicative areas for focus,
the reasons for a rise in debtors and suitable control for future standing which is profitable to
the company as a whole.
0rofitability, for eample, is often regarded as the ultimate performance indicator,
but it is not the actual performance. The actual performance occurred some time
back ; first with decisions and then the actions that followed the decisions. 0rofit is
therefore an indicator of previous performance. In this sense, performance is the
outcome or Oend$.
If you are also interested in current behaviors that are associated with good or high
performance, then you must identify and assess them as they occur. These
behaviors start with the strategic planning process and continue into
implementation, monitoring, and assessment. In this sense, performance is the
Oactivity$ or Omeans$. are also interested in predictors of performance ; conditions
and behaviors that have been shown over time to lead to better performance. In this
sense, performance is a package of behaviors around strategic planning and
programming.
According to Ghobadian, (1994), There are numerous, major methods and
movements to regularly increase the performance of organiations! "ach
includes regular recurring activities to establish organiational goals,
monitor progress to#ard the goals, and ma$e adjustments to achieve those
goals more effectively and efficiently! Typically, these become integrated
into the overall recurring management systems in the organiation (as
opposed to being used primarily in one%time projects for change!
4./ -e#"!re" of Perform#$e.
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'hen determining performance of a business, the following have to be considered
according to ("alunywa, E)
I$re#"ed m#r
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such away that customer re%uirements are meet in full. For each element of product or service
that is of concern to the customer, organizations will have an internal response that facilitates
the satisfaction of the customer preferences thus, performance. The most successful
businesses are those that can most effectively configure their operations to meet customer
re%uirements.
P$$i$%
Dune (4) stresses the importance of financial planning in the business to prosper
effectively. - retailer or any business owner invests money in merchandise for profitable resale
to others but this will be impossible of the choice of merchandise if made without effective
planning, and the result is always low profits or loss.
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-ccording to Mbaguta, (+22+) lack of capital is another impediment to businesses in their early
stages. =esults of the study indicated a significant proportion of the respondents, 53(3E
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Retio$"hi, betwee$ debtor m#$#%eme$t #$d or%#$i>#tio$#& ,erform#$e
For businesses to succeed it is essential to have a good debtor management In addition,
businesses should aim at fiing prices that will enable them to earn sufficient profits for
survival and growth. Further, every businessperson needs effective and efficient management
skills to go into business and new, effective, and efficient management skills to stay there.
1ama77a (+22/) recommends debtor management systems.&he asserts that small to medium
sized businesses should have system or process for managing debtors. It is even more
important during uncertain financial times that you manage your debtors effectively, and there
are several different methods for doing this.
-ccording to "alunywa(5)C medium sized businesses should have budget profit and loss
analysistoreally know what you spend (or intend to spend) in each area of your business over
+ monthsR
Co$&!"io$
In orgarnisations,although there are other ways of driving the business to success like
competitive aggressiveness, visionary, leadership, trained staff and costumer focus, debtor
management provides a reflector of past and a drive to achieve better performance for
effective measurement.
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INDUSTR+ PROFILEIndia is the eighth largest producer of crude steel in the world, accounting for /./< of
the global steel production in +224. India$s finished carbon steel production grew to reach an
estimated 3+.5/mmt in +224;25C primary producers alone contributed about /E< whereas
secondary producers contributed the rest. 'ith reference in changes in economy Indian steel
industry is poised for massive epansion. Dramatic consumption growth over the last few
years has stimulated enormous epansion plans, facilitated by a relatively uneploited iron ore
raw material base. India is now being hailed as the new !hina, where crude steel production
soared from less than 22m tonnes in 4 to over 322m tonnes in +225.This report focuses
on detailed study about the Indian &teel Industry. &teel became an integral part of
development. It discusses basic steel manufacturing processes like "last Furnace and, lectric
arc Furnace, industry value chain with a special reference to ma7or raw material trends and
price trends of steel products. Demand >supply dynamics has been discussed along with key
growth drivers and port;Import scenario. It also talks about Issues 9 challenges of the steel
industry, mergers and ac%uisitions, government policies and regulations. Top 2 *eading
0layers in steel Industry have been profiled namely &teel -uthority of India (&-I*), BI*,
&&-= &teel and &' &teel in this report and analyzed on the basis of financial and
operational performance and compares their !ompetitive 0ositioning along with future
outlook in the light of increasing trend in investments in the domestic industry .&teel Industry
in India is on an upswing because of the strong global and domestic demand. India6s rapid
economic growth and soaring demand by sectors like infrastructure, real estate and
automobiles, at home and abroad, has put Indian steel industry on the global map. -ccording
to the latest report by International Iron and &teel Institute (II&I), India is the seventh largest
steel producer in the world.
'ith reference to development which revised Indian infrastructure, the origin of the modern
Indian steel industry can be traced back to 4/ when a contract for the construction of an
integrated steelworks in =ourkela, #rissa was signed between the Indian government and the
Perman companies Fried Jrupp und Demag -P. The initial plan was an annual capacity of
422,222 tonnes, but this was subse%uently raised to million tonnes. The capacity of
=ourkela &teel 0lant (=&0), which belongs to the &-I* (&teel -uthority of India *td.) group,
is presently about + million tonnes. -t a very early stage the former H&&= and a "ritish
consortium also showed an interest in establishing a modern steel industry in India. This
resulted in the &oviet;aided building of a steel mill with a capacity of million tonnes in"hilai and the "ritish;backed construction in Durgapur of a foundry which also has a million
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tone capacity. The Indian steel industry is organized in three categories i.e., main producers,
other ma7or producers and the secondary producers. The main producers and other ma7or
producers have integrated steel making facility with plant capacities over 2.4 mT and utilize
iron ore and coal8gas for production of steel. The main producers are BI*, &-I*, and =I1*,
while the other ma7or producers are &&-=, I&0-T and :&*. The secondary sector is
dispersed and consists ofA () "ackward linkage from about +2 sponge iron producers that
use iron ore and non;coking coal, providing feedstock for steel producersC (+) -pproimately
542 mini blast furnaces, electric arc furnaces, induction furnaces and energy optimizing
furnaces that use iron ore, sponge iron and melting scrap to produce steelC and (/) Forward
linkage with about ,+22 re;rollers that roll out semis into finished steel products for
consumer use.
&tructural 'eaknesses of Indian &teel Industry
-lthough India has modernized its steelmaking considerably, however, nearly 5< of its crude
steel is still produced using the outdated open;hearth process.
*abour productivity in India is still very low. -ccording to an estimate crude steel output at
the biggest Indian steelmaker is roughly 33 tonnes per worker per year, whereas in 'estern
urope the figure is around 522 tonnes.
India is deficient in raw materials re%uired by the steel industry. Iron ore deposits are finite
and there are problems in mining sufficient amounts of it. India6s hard coal deposits are of low
%uality. Insufficient freight capacity and transport infrastructure impediments too hamper the
growth of Indian steel industry.
&trengths of Indian &teel Industry
S *ow labour wage rates
S -bundance of %uality manpower
S Mature production base
S 0ositive stimuli from construction industry
S "ooming automobile industry
#utlook The outlook for Indian steel industry is very bright. India6s lower wages and
favourable energy prices will continue to promise substantial cost advantages compared to
production facilities in ('estern) urope or the H&. It is also epected that steel industry will
undergo a process of consolidation since industry players are engaged in an unfettered rush
for scale. This is evident from the recent ac%uisition of !orus by Tata. The deployment of
steel.
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-sbestos is a group ofmineralswith long, thin fibrous crystals. The word
asbestos is derived from a Preekad7ective meaning inetinguishable.
The Preekstermed asbestos the miracle mineral because of its soft and pliant
properties, as well as its ability to withstand heat. -sbestos became increasingly
popular among manufacturers and builders in the late th century due to its
resistance to heat, electricity and chemical damage, its sound absorption and tensile
strength. 'hen asbestos is used for its resistance to fire or heat, the fibers are often
mied with cementor woven into fabric or mats. -sbestos was used in some
products for its heat resistance, and in the past was used on electric oven and
hotplate wiring for its electrical insulationat elevated temperature, and in buildings
for itsflame;retardantand insulating properties, tensile strength, fleibility, and
resistance to chemicals.
The main product -&"&T#& !M1T &BT is primarily a cement based
product were about 2;4< asbestos fiber is needed to reinforce the cement is
weather proof, even through it absorbs moisture, the water will not pass through
the product. -sbestos cement is used for corrugated sheets, slates, flat sheet for
animal pens, cladding molded fitting, water system rain water gutters, down pipes,
under ground pipes and sewer pipes, skills, chalkboards. Most of the asbestos
consumed globally is chrysolite. =ussia, Jazakhstan is ma7or producers of
asbestos. The studies across the globe had not found any increased risk of carrier to
the workers even at the levels of fiber8cubic centimeter, whereas the Indian
chrysolite cement industry works well bellow 2.4 fiber8cubic centimeter.
/.3.3 6i"tori !"#%e
-sbestos was named by the ancient Preeks who also recognized certain hazards of
the material. The Preek geographer &traboand the =oman naturalist 0liny the
ldernoted that the material damaged lungs of slaves who wove it into
cloth. !harlemagne, the first Boly =oman mperor, is said to have had a tablecloth
made of asbestos.
'ealthy 0ersians, who bought asbestos imported over the Bindu Jush, amazed
guests by cleaning the cloth by simply eposing it to fire. -ccording to "iruniin
his book of Pems, any cloths made of asbestos were called shastakeh. &ome of the
/
http://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Mineralhttp://en.wikipedia.org/wiki/Crystalhttp://en.wikipedia.org/wiki/Greek_languagehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Electrical_insulationhttp://en.wikipedia.org/wiki/Flame_retardanthttp://en.wikipedia.org/wiki/Flame_retardanthttp://en.wikipedia.org/wiki/Tensile_strengthhttp://en.wikipedia.org/wiki/Strabohttp://en.wikipedia.org/wiki/Pliny_the_Elderhttp://en.wikipedia.org/wiki/Pliny_the_Elderhttp://en.wikipedia.org/wiki/Charlemagnehttp://en.wikipedia.org/wiki/Holy_Roman_Emperorhttp://en.wikipedia.org/wiki/Persian_peoplehttp://en.wikipedia.org/wiki/Hindu_Kushhttp://en.wikipedia.org/wiki/Biruni#_ref-16http://en.wikipedia.org/wiki/Crystalhttp://en.wikipedia.org/wiki/Greek_languagehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Electrical_insulationhttp://en.wikipedia.org/wiki/Flame_retardanthttp://en.wikipedia.org/wiki/Tensile_strengthhttp://en.wikipedia.org/wiki/Strabohttp://en.wikipedia.org/wiki/Pliny_the_Elderhttp://en.wikipedia.org/wiki/Pliny_the_Elderhttp://en.wikipedia.org/wiki/Charlemagnehttp://en.wikipedia.org/wiki/Holy_Roman_Emperorhttp://en.wikipedia.org/wiki/Persian_peoplehttp://en.wikipedia.org/wiki/Hindu_Kushhttp://en.wikipedia.org/wiki/Biruni#_ref-16http://en.wikipedia.org/wiki/Mineral8/12/2019 Debiters Management
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0ersians believed the fiber was fur from an animal named samandarthat lived in
fire and died when eposed to water.
&ome archeologists believe that ancients made shrouds of asbestos, wherein they
burned the bodies of their kings, in order to preserve only their ashes, and prevent
their being mied with those of wood or other combustible materials commonly
used in funeral pyres. #thers assert that the ancients used asbestos to make
perpetual wicks forsepulchralor other lamps. In more recent centuries, asbestos
was indeed used for this purpose. -lthough asbestos causes skin to itch upon
contact, ancient literatureindicates that it was prescribed for diseases of the skin,
and particularly for the itch. It is possible that they used the
term asbestos for alumen plumosum, because the two terms have often beenconfused throughout history.
-sbestos became more widespread during the industrial revolutionC in the E52s it
was used as insulation in the H.&. and !anada. Development of the first
commercial asbestos mine began in E in the -ppalachianfoothills
of Kuebec. "y the mid +2th century uses included fire retardant coatings, concrete,
bricks, pipes and fireplace cement, heat, fire, and acid resistant gaskets, pipe
insulation, ceiling insulation, fireproof drywall, flooring, roofing, lawn furniture,and drywall 7oint compound.
-pproimately 22,222 people in the Hnited &tates have died, or will die, from
asbestos eposure related to ship building. In theBampton =oadsarea, a
shipbuilding center,mesothelioma occurrence is seven times the national rate.
Thousands of metric tons of asbestos were used in'orld 'ar IIships to wrap the
pipes, line the boilers, and cover engine and turbine parts. There were
approimately 3./ million shipyard workers in the Hnited &tates during ''IIC for
every thousand workers about fourteen died of mesothelioma and an unknown
number died from asbestosis.
-sbestos fibers were once used in automobilebrake padsand shoes. &ince the mid;
2s, a ma7ority of brake pads, new or replacement, have been manufactured
instead with linings made of ceramic, carbon, metallic and -ramid
fiber(Twaronor JevlarUthe same material used inbullet;proof vests). Jent, the
32
http://en.wikipedia.org/wiki/Salamander_(legendary_creature)http://en.wikipedia.org/wiki/Sepulchrehttp://en.wikipedia.org/wiki/Ancient_literaturehttp://en.wikipedia.org/wiki/Alumen_plumosumhttp://en.wikipedia.org/wiki/Appalachian_Mountainshttp://en.wikipedia.org/wiki/Quebechttp://en.wikipedia.org/wiki/Hampton_Roadshttp://en.wikipedia.org/wiki/Mesotheliomahttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Asbestosishttp://en.wikipedia.org/wiki/Brake_padshttp://en.wikipedia.org/wiki/Aramidhttp://en.wikipedia.org/wiki/Aramidhttp://en.wikipedia.org/wiki/Twaronhttp://en.wikipedia.org/wiki/Kevlarhttp://en.wikipedia.org/wiki/Bulletproof_vesthttp://en.wikipedia.org/wiki/Kent_(cigarette)http://en.wikipedia.org/wiki/Salamander_(legendary_creature)http://en.wikipedia.org/wiki/Sepulchrehttp://en.wikipedia.org/wiki/Ancient_literaturehttp://en.wikipedia.org/wiki/Alumen_plumosumhttp://en.wikipedia.org/wiki/Appalachian_Mountainshttp://en.wikipedia.org/wiki/Quebechttp://en.wikipedia.org/wiki/Hampton_Roadshttp://en.wikipedia.org/wiki/Mesotheliomahttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Asbestosishttp://en.wikipedia.org/wiki/Brake_padshttp://en.wikipedia.org/wiki/Aramidhttp://en.wikipedia.org/wiki/Aramidhttp://en.wikipedia.org/wiki/Twaronhttp://en.wikipedia.org/wiki/Kevlarhttp://en.wikipedia.org/wiki/Bulletproof_vesthttp://en.wikipedia.org/wiki/Kent_(cigarette)8/12/2019 Debiters Management
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firstfiltered cigaretteon the market, used crocidolite asbestos in its Micronite
filter from 4+ to 45.
The first documented death related to asbestos was in 25. In the early 22s
researchers began to notice a large number of early deaths and lung problems in
asbestos mining towns. The first diagnosis of asbestosiswas made in ngland in
+3."y the /2s, ngland regulated ventilation and made asbestosis an
ecusable work related disease, about ten years sooner than the H.&. The
term Mesotheliomawas not used in medical literature until /, and was not
associated with asbestos until sometime in the 32s.
The Hnited &tates government and asbestos industry have been criticized for not
acting %uickly enough to inform the public of dangers, and to reduce public
eposure. In the late 2s court documents proved that asbestos industry officials
knew of asbestos dangers and tried to conceal them.
In apan, particularly after 'orld 'ar II,asbestos was used in the manufacture
of ammonium sulphatefor purposes of rice production, sprayed upon the ceilings,
iron skeletons, and walls of railroad cars and buildings (during the 52s), and
used for energy efficiency reasons as well. 0roduction of asbestos in apan peaked
in 3 and went through ups and downs until about 2, when production began
to drop severely.
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CO--ERCIALL+ AVAILABLE ROOFING -ATERIALS
The weather proofing material is the topmost or outermost layer, eposed to the
weather. Many different kinds of materials have been used as weather proofing
materialA
Thatch is roofing made of plant stalks in overlapping layers.
'heat &traw,widely used in ngland, France and other parts of urope.
&ea grass, used in coastal areas where there are estuariessuch as &cotland. Bas a
longer life than straw. !laimed to have a life in ecess of 52 years.
&hingles, called shakes in 1orth -merica. &hingles is the generic term for a roofing
material that is in many overlapping sections, regardless of the nature of the material.
The word is also used specifically to denote shingles made of wood.
=ed cedar.*ife epectancy, up to /2 years. Bowever, young growth red cedar has a
short life epectancy. Bigh cost. &hould be allowed to breathe.
Bardwood. :ery durable roofing found in !olonial-ustralian architecture, its use
now limited to restorations.
&late. Bigh cost with a life epectancy of up to +22 years. &late cleaves into thin
sheets, making it much lighter than concrete tiles, though heavier than sheet steel and
other light roof coverings.
&tone slab. Beavy stone slabs (not to be confused with slate) ;+ thick were
formerly used as roofing tiles in some regions in ngland. &tone slabs re%uire a very
heavyweight roof structure, but their weight makes them storm proof. -n obsolete
roofing material.
!eramic tile. Bigh cost, life of more then 22 years.
Imbre and tegula,style dating back to ancient Preece and =ome.
Metal shakes or shingles. *ong life. Bigh cost, suitable for roofs of /8+ pitch or
greater. "ecause of the fleibility of metal, they can be manufactured to lock together,
giving durability and reducing assembly time.
Mechanically seamed metal. *ong life. Bigh cost, suitable for roofs of low pitch such
as 2.48+ to /8+ pitch.
!oncrete,usually reinforced with fibres of some sort. !oncrete tiles re%uire a stronger
roof structure than slate, as some owners have found to their cost.
3+
http://en.wikipedia.org/wiki/Thatchhttp://en.wikipedia.org/wiki/Strawhttp://en.wikipedia.org/wiki/Seagrasshttp://en.wikipedia.org/wiki/Esturyhttp://en.wikipedia.org/wiki/Roof_shinglehttp://en.wikipedia.org/wiki/Redcedarhttp://en.wikipedia.org/wiki/Redcedarhttp://en.wikipedia.org/wiki/Hardwoodhttp://en.wikipedia.org/wiki/Australian_architecturehttp://en.wikipedia.org/wiki/Restorationhttp://en.wikipedia.org/wiki/Slatehttp://en.wikipedia.org/wiki/Tilehttp://en.wikipedia.org/wiki/Imbrex_and_tegulahttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Thatchhttp://en.wikipedia.org/wiki/Strawhttp://en.wikipedia.org/wiki/Seagrasshttp://en.wikipedia.org/wiki/Esturyhttp://en.wikipedia.org/wiki/Roof_shinglehttp://en.wikipedia.org/wiki/Redcedarhttp://en.wikipedia.org/wiki/Hardwoodhttp://en.wikipedia.org/wiki/Australian_architecturehttp://en.wikipedia.org/wiki/Restorationhttp://en.wikipedia.org/wiki/Slatehttp://en.wikipedia.org/wiki/Tilehttp://en.wikipedia.org/wiki/Imbrex_and_tegulahttp://en.wikipedia.org/wiki/Concrete8/12/2019 Debiters Management
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A",h#&t "hi$%&e0made of bitumen embedded in an organic or fiberglass mat, usually
covered with colored, man;made ceramic grit. !heaper than slate or tiles. :arious life
span epectancies.
A"be"to""hi$%&e".:ery long lifespan, fireproof and low cost but now rarely usedbecause of health concerns.
-embr#$e.Membrane roofing is in large sheets, generally fused in some way at the
7oints to form a continuous surface.
Thermo"etti$% ,"ti(e.g.0DM rubber). &ynthetic rubber sheets adhered together
with contact adhesive or tape. 0rimary application is big bo store with large open
areas and little vertical protrusions.
Thermo,"ti(e.g. 0:!,T0#, !&0). 0lastic sheets welded together with hot air
creating one continuous sheet membrane. !an be rewelded with the eception of
!&0. *ends itself well to both big bo and small roof application because of its hot
air weld ability.
-odified bit!me$; heat welded, asphalt adhered or installed with adhesive. -sphalt
is mied with polymers such as -00 or &"&, then applied to fiberglass and8or
polyester mat, seams sealed by locally melting the asphalt with heat, hot mopping of
asphalt, or adhesive. *ends itself well to all applications. B!i&t1U, Roof 1Multiple plies of asphalt saturated organic felt or coated fiberglass
felts. 0lies of felt are adhered with hot asphalt, coal tar pitch or adhesive.
S,r#yed1i$1Pe Po&y!reth#$e Fo#m ?SPUF@; Foam sprayed in;place on the roof,
and then coated with a wide variety of coatings, or in some instances, covered with
gravel.
Po&ye"ter.
PTFE?"y$theti F&!or ,o&ymer@embedded infibre glass.
-et#& roofi$%. Penerally a relatively inepensive building material, unless copper is
used.
G#&(#$i>ed "tee&fre%uently manufactured with wavy corrugations to resist lateral
fleing and fitted with eposed fasteners. 'idely used for low cost and durability.
&heds are normally roofed with this material. Jnown as Pal iron, it was the most
etensively used roofing material of +2th century -ustralia, now replaced in
3/
http://en.wikipedia.org/wiki/Asphalt_shinglehttp://en.wikipedia.org/wiki/Asbestoshttp://en.wikipedia.org/wiki/Thermosetting_plastichttp://en.wikipedia.org/wiki/EPDM_rubberhttp://en.wikipedia.org/wiki/Thermoplastichttp://en.wikipedia.org/wiki/Polyvinyl_chloridehttp://en.wikipedia.org/wiki/ThermoPlastic_Olefinhttp://en.wikipedia.org/wiki/Hypalonhttp://en.wikipedia.org/wiki/Bitumenhttp://en.wikipedia.org/wiki/Polyesterhttp://en.wikipedia.org/wiki/PTFEhttp://en.wikipedia.org/wiki/Fibreglasshttp://en.wikipedia.org/wiki/Metal_roofhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Galvanised_steelhttp://en.wikipedia.org/wiki/Galvanised_steelhttp://en.wikipedia.org/wiki/Asphalt_shinglehttp://en.wikipedia.org/wiki/Asbestoshttp://en.wikipedia.org/wiki/Thermosetting_plastichttp://en.wikipedia.org/wiki/EPDM_rubberhttp://en.wikipedia.org/wiki/Thermoplastichttp://en.wikipedia.org/wiki/Polyvinyl_chloridehttp://en.wikipedia.org/wiki/ThermoPlastic_Olefinhttp://en.wikipedia.org/wiki/Hypalonhttp://en.wikipedia.org/wiki/Bitumenhttp://en.wikipedia.org/wiki/Polyesterhttp://en.wikipedia.org/wiki/PTFEhttp://en.wikipedia.org/wiki/Fibreglasshttp://en.wikipedia.org/wiki/Metal_roofhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Galvanised_steel8/12/2019 Debiters Management
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popularity by steel roofing coated with an alloy of zinc and aluminum, claimed to
have up to four times the life of galvanized steel.
St#$di$%1"e#m met#& with concealed fasteners.
-eh#$i#&&y "e#med met#&with concealed fasteners contains sealant in seams foruse on very low sloped roofs.
Ft1"e#m met#&with soldered seams.
G""!lear windows have been used since the invention of glass to cover small
openings in a building. They provided humans with the ability to both let light into
rooms while at the same time keeping inclement weather outside. Plass is generally
made from mitures of sand and silicates, and is very brittle. Modern glass curtain
walls can be used to cover the entire facade of a building. Plass can also be used to
span over a wide roof structure in a space frame.
Cer#mi"0theseare such things as tiles, fitures, etc. !eramics are mostly used as
fitures or coverings in buildings. !eramic floors, walls, counter;tops, even ceilings.
Many countries use ceramic roofing tiles to cover many buildings. !eramics used to
be 7ust a specialized form of clay;pottery firing in kilns, but it has evolved into more
technical areas.
Fo#m More recently syntheticpolystyreneorpolyurethanefoam has been used on a
limited scale. It is light weight, easily shaped and an ecellent insulator. It is usually
used as part of a structural insulated panelwhere the foam is sandwiched between
wood or cement.
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CO-PAN+ PROFILE
The year 35 saw the birth of India. It was also the year BGD=-"-D
I1DH&T=I& *IMITD was founded. #ver the decades, it has blazed a
pioneering path in the fibre cement industry and has grown into a formidable
player. The corporate office of BI* is situated at Byderabad. The BI* = 9 D
centers situated at Byderabad and Faridabad support all its manufacturing units to
achieve ecellency in its manufacturing activities. The Manufacturing facilities are
at Byderabad, Faridabad 9 Daruhera (Baryana), !hennai (T1), asidih
(harkhand), 'ada (Maharashtra), :i7ayawada, Timmappur (-0),sutariya (H0),
"alasore(#rissa) and Thrissur (kerala).
The company has four regional offices 9 over 35 sales depots all over India, all
with the purpose of providing convenient services to customers. BGD=-"-D
I1DH&T=I& *IMITD is a flagship !ompany of the !.J."irla group of
!ompanies, incorporated on th une 35. BI* has blazed a pioneering path in
the building products industry. BI* has led the cement industry for well over five
decades. Today BI* is a multi product, multi locational organization with a
formidable network of branches, depots, stockiest and personnel spread all over
India.
BI* being backed by the organizational and technical epertise of the "irlas, also
has a "oard of directors comprising eperienced personnel from "usiness, Finance
and Industry. The "oard is chaired by Mr.!.J."irla. BI*$s product range include
Fibre !ement roofing sheets in the name of !B-=MI1-= and M-*-"-=,
-utoclaved -erated !oncrete "locks and 0anels called -=#!#1, !alcium
&ilicate insulation product called BG&I*, ointing material for Paskets and 0lant
and machinery for these products.
The BGD=-"-D I1DH&T=I& *IMITD, Thrissur is situated 2 km away
from the Thrissur town. The eact place where the company is situated is -thani,
which is an industrial area. This company was incorporated in the year E4 and
commenced production in E5 in the name as M-*-"-= "HI*DI1P
0=#DH!T&, which was a 7oint venture by BI* and J&ID! (Jerala &tate
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Industries Development !orporation. *ater in the year +224 -pril the company
was merged with the BI* completely from the J&ID!. -nd in the same year the
company changed its name to BGD=-"-D I1DH&T=I& *IMITD.
-bout +22 employees are working in BI*, Thrissur as a whole. In that 2
employees are working in plant, + are office staffs and E are bargaining staffs.
The plant is working for +3 hours and there are three shifts per day. The whole
plant is completely automated. The BI* Thrissur plant is producing only the -!
roofing sheets in the name of !B-=MI1-=.
!harminar -! =oofing &heets have been the 1o. roofing sheets of choice for
more than 42 years now, providing roofing to millions of low cost houses and toindustries, commercial businesses and for several public utilities. !harminar sheets
are widely known for their superior %uality and durability. The raw materials used
in the production process are Fibre, fly ash, rag pulp and cement. -mong these raw
materials Fibre is importing from "razil and !anada and cement is mainly bought
from -!! cements. The !ompany mainly sells their products through dealers who
are selected by the company. The finished products are mainly sold in the south
India, especially in Tamil 1adu.
The company has a visionary management and motivated team of dynamic
workers sharing common vision and working in the union. The company is moving
ahead with to innovate and provide ecellent production. BI* is providing to have
an operational efficiency compactable with global standards. -s a socially
organization, it has contributed significantly towards eco;friendliness and various
social causes.
The company has involved in conducting a lot of community welfare programme.
In this year the company conducted a welfare programme named
OHB=HTB-M +22E$.
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-i""io$ #$d Vi"io$ of 6yder#b#d I$d!"trie" Limited
To m#i$t#i$ &e#der"hi, i$ Fibre eme$t ,rod!t" i$d!"try #$d de(e&o,
om,&eme$t#ry ,rod!t" #$d "er(ie" to "tre$%the$ the ore b!"i$e"" of
b!i&di$% ,rod!t".
Fulfilment of market needs with cost effective solutions for enduring and enhanced
customer satisfaction.
&triving for ecellence in all the area of company$s operation.
Innovative solutions to create world class products and services fostering collective
wisdom and commitment of employees to create corporate and group culture and values
which they are proud to be part of.
Maintain e%uitable balance between development and environmental needs of the society.
/.3.4 *!#&ity Po&iy
0rovide products and services that ade%uately and consistently meet specified and
identified needs of customers by
!ontinues upgrade of product value and by
"uilding customer responsive environment
In making and deliverance of the products and services
/.3./ Re"e#rh De(e&o,me$t.
=esearch and Development !enter of Byderabad Industries *imited is fully
e%uipped with latest state;of;art technology, e%uipment and test facilities including
0ilot 0lants situated in ultra modern spacious building covering an area of about
222 sft of main "uilding and about 5222 sft area of 0ilot 0lant. BI*, = 9 D
center is recognized by Department of &cience and Technology Povernment of
India.
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6IL h#(e bee$ o$ferred with the DSIR N#tio$#& Aw#rd for R D effort" i$
i$d!"try for the ye#r 4 i$ the #re# of $ew m#teri#&" for AEROCON
INSTA PANEL
Dedicated team of scientists and engineers are constantly working for product
upgradation, optimum utilization of raw materials, development of substitute
materials, new products and new product applications, saving substantial amount
of foreign echange for the country.The = 9 D Division has contributed in the
following specific areasA
Identification and development of environment friendly building products with
emerging market needs. mphasis on process optimization, cost reduction and development of value added
products.
ffective utilization of energy, water and waste material.
-bsorption of imported technical know;how.
Development of new products i.e., -erocon Insta ; 0anels, -ccess Flooring system,
pressed sheets, fire protection boards, *ight weight --! "locks, non;asbestos
7ointing material for automobile industry etc.
*!#&ity Po&iy
0rovide products and services that ade%uately and consistently meet specified and
identified needs of customers by
!ontinues upgrade of product value and by
"uilding customer responsive environment
In making and deliverance of the products and services
Phi&o"o,hy
BGD=-"-D I1DH&T=I& *IMITD is committed to good !orporate
Povernance. The !ompany has been following good principles of business over
the years by following all the laws and regulations of the land with an emphasis on
accounta