PROJECT REPORT ON

RECIEVABLE MANAGEMENT

AT KARVY STOCK BROKING LTD.

A Project report submitted to Osmania University in partial fulfillment

of the Requirements For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By SUNIL

HT.NO

Under the guidance of

MR. VENU MADHAV(Asst. Professor)

MALLAREDDY INSTITUTE OF MANAGEMENT

(Affiliated to Osmania University)DULAPALLY, HYDERABAD – 500060.

2009 - 2011

ACKNOWLEDGEMENT

The project on ““RECIEVABLE MANAGEMENT’’” would not have seen

the light of the day without the following people and their priceless support

and cooperation. Hence I extend my gratitude to all of them.

I would like to thank KARVY STOCK BROKING LTD for giving me an

opportunity of learning and contributing through this project.

As a student of MRIM HYDERABAD, I would first of all like to express my

gratitude to Mr.NARAYANA MURTHY for assigning me such a worthwhile

topic “RECIEVABLE MANAGEMENT’’ to work upon in KARVY STOCK

BROKING LTD.

During the actual project work, Mr. VENU MADHAV (Project Guide) who

set the ball rolling for my project. He has been a source of inspiration

through his constant guidance; personal interest; encouragement and help.

I convey my sincere thanks to him. In spite of his busy schedule he always

found time to guide me through the project. I am also grateful to him for

reposing confidence in my abilities and giving me the freedom to work on

my project. Without his invaluable help I would not have been able to do

justice to the project.

The project couldn’t have been completed without timely and vital help of

other office staff. Special thanks to Mr. SRINIVAS SASTRY (PRINCIPAL)

and Mr. UDAY SHANKAR(HOD) for his invaluable guidance, keen

interest, cooperation, inspiration, and of course moral support through my

project session.

SUNIL

DECLARATION

I hereby declare that this project report titled

“RECIEVABLE MANAGEMENT”

is submitted by me to Osmania University is a bonafide work undertaken by me

and it is not submitted to any other University or Institute for the award of any

Degree / Diploma / Certificate or published any time before.

.

Place: Hyderabad Signature

Date: (SUNIL) HT. No

E X E C U T I V E S U M M A R Y INTRODUCTION OF THE PROJECT In this project I have covered following topics:

1. Analysis of credit period allowed to debtors.

2. How to reduce the debtor’s day.

3. Export procedure and export documents required for shipment

PROJECT TITLE

‘Study of receivable management & Credit analysis’

LOCATION

KARVY STOCK BROKING LTD HYDERABAD

HOW THE PROJECT WAS CARRIED OUT

With a field force of about 3,000, companies sales, marketing and

distribution network is among the largest in the country. Companies business is

spread throughout the world, as it is one of the well known manufacturers of Vitamin

A. First i have studied all the sales targeted by the company for current financial

year and credit period the have decided to customers based on various factors.

Then i made the break-up of the credit period and analyze the places where the

reduction is possible. Finally I have made an attempt to reduce the credit period

wherever possible.

OBJECTIVE OF THE PROJECT

1. To analyze the procedure of allowing the credit period to debtors.

2. To reduce the debtor’s days and minimize the risk of bad debts.

3. To study the Export procedure & documents.

I N D E X

TOPIC Page no.CHAPTER: - 1 Company Introduction 12-21

CHAPTER:-2

Research Methodology 22-25

Object of the Study. 23

Objective of the project 23

Approach to Research 23

Data collection 24

1. Primary data

2. Secondary data

Limitations of the Project 25

Data Analysis 25

CHAPTER:-3

Project Theory 26-40 Receivable management & A/C Receivable 27-30

Credit management & Credit decision process 31-34

Export Procedure & export Documents 35-40

TOPIC PAGE NO.

CHAPTER:-4

Practical Insights of Project 41-52

Observation And Analysis of given transaction/orders 41-46

Final Break-up of credit period 47-49

Possible reduction of credit period 50-52

CHAPTER:-5

Conclusions 53-55

- General conclusions 54

- Company specific conclusion 55

CHAPTER:-6

Suggestions & 56-57

Recommendations 57

CHAPTER:-7

Bibliography 58-59

COMPANY PROFILE

3. 1 MISSION OF KARVY :

Their mission is to be a leading, preferred service provider to our customer, and they

aim To achieve this leadership position by building an innovative, enterprising, and technology

drive organization which will set the highest standards of service and business ethics.

3.2 INTRODUCTION:

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise

of a small group of practicing Chartered Accountants who founded the flagship company Karvy

Consultants Limited. We started with consulting and financial accounting automation, and

carved inroads into the field of registry and share accounting by 1985.Karvy Stock Broking Ltd

is a member of National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The

Hyderabad Stock Exchange (HSE).

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely

towards attaining diverse goals of the customer through varied services. Creating a plethora of

opportunities for the customer by opening up investment vistas backed by research-based

advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping

the customer create waves in his portfolio and empowering the investor completely is the

ultimate goal.It is an undisputed fact that the stock market is unpredictable and yet enjoys a

high success rate as a wealth management and wealth accumulation option. The difference

between unpredictability and a safety anchor in the market is provided by in-depth knowledge of

market functioning and changing trends, planning with foresight and choosing options with care.

Karvy offers services that are beyond just a medium for buying and selling stocks and

shares. Instead they provide services which are multi dimensional and multi-focused in their

scope. There are several advantages in utilizing their Stock Broking services, which are the

reasons why it is one of the best in the country.

Karvy offer trading on a vast platform; National Stock Exchange, Bombay Stock

Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to the

maximum possible extent, by accounting for several risk factors and planning accordingly. They

are assisted in this task by their in-depth research, constant feedback and sound advisory

facilities. Their highly skilled research team, comprising of technical analysts as well as

fundamental specialists, secure result-oriented information on market trends, market analysis and

market predictions. This crucial information is given as a constant feedback to their customers,

through daily reports delivered thrice daily; The Pre-session Report, where market scenario for

the day is predicted, The Mid-session Report, timed to arrive during lunch break, where the

market forecast for the rest of the day is given and The Post-session Report, the final report for

the day, where the market and the report itself is reviewed. To add to this repository of

information, they publish a monthly magazine; Karvy;

The Fin polis; which analyzes the latest stock market trends and takes a close look at the

various investment options, and products available in the market, while a weekly report, called;

Karvy Bazaar Baatein; keeps the investor more informed on the immediate trends in the stock

market. In addition, their specific industry reports give comprehensive information on various

industries. Besides this, they also offer special portfolio analysis packages that provide daily

technical advice on scrip for successful portfolio management and provide customized advisory

services to help the investors to make the right financial moves that are specifically suited to

their portfolio.

To empower the investor further they have made serious efforts to ensure that their

research calls are disseminated systematically to all their stock broking clients through various

delivery channels like email, chat, SMS, phone calls etc.

In the future, their focus will be on the emerging businesses and to meet this objective,

they have enhanced their manpower and revitalized their knowledge base with enhances focus on

Futures and Options as well as the commodities business.

Respect for the individual:

Each and every individual is an essential building block of our organization.

We are the kilns that hone individuals to perfection. Be they our employees, shareholders or

investors. We do so by upholding their dignity & pride, inculcating trust and achieving a

sensitive balance of their professional and personal lives.

Teamwork:

None of us is more important than all of us.

Each team member is the face of Karvy. Together we offer diverse services with speed, accuracy

and quality to deliver only one product: excellence. Transparency, co-operation, invaluable an

individual contribution for a collective goal, and respecting individual uniqueness within a

corporate whole, is how we deliver again and again.

Responsible Citizenship:

A social balance sheet is as rewarding as a business one.

As a responsible corporate citizen, our duty is to foster a better environment in the society where

we live and work. Abiding by its norms, and behaving responsibly towards the environment, is

some of our growing initiatives towards realizing it.

Integrity:

Everything else is secondary.

Professional and personal ethics are our bedrock. We take pride in an environment that

encourages honesty and the opportunity to learn from failures than camouflage them. We insist

on consistency between works and actions.

3.3 BOARD OF DIRECTORS:

1. Mr. C Parthasarathy

Chairman and Managing Director

2. Mr. M Yugandhar

Managing Director

3. Mr. M S Ramakrishna

Director

4. Mr. Prasad V Potluri

Director

3.4 KARVY GROUPS OF COMPANIES ARE:

1) Karvy Consultants Ltd

2) Karvy Stock Broking Ltd

3) Karvy Investors Service Ltd

4) Karvy Computershare Pvt Ltd

5) Karvy Global Service Ltd

6) Karvy Commodities Broking Ltd

7) Karvy Insurance Broking Private Ltd

8) Karvy alliances

1. KARVY CONSULTANTS LIMITED:

As the flagship company of the Karvy Group, Karvy Consultants Limited has always at

remained the helm of organizational affairs, pioneering business policies, work ethic and

channels of progress.

Having emerged as a leader in the registry business, the first of the businesses that Karvy

ventured into, company have now transferred this business into a joint venture with Computer

share Limited of Australia, the world’s largest registrar. With the advent of depositories in the

Indian capital market and the relationships that Company have created in the registry business,

Karvy believe that they were best positioned to venture into this activity as a Depository

Participant. Karvy were one of the early entrants registered as Depository Participant with NSDL

(National Securities Depository Limited), the first Depository in the country and then with CDSL

(Central Depository Services Limited). Today, Karvy service over 6 lakhs customer accounts in

this business spread across over 250 cities/towns in India and are ranked amongst the largest

Depository Participants in the country. With a growing secondary market presence, they have

transferred this business to Karvy Stock Broking Limited (KSBL), their associate and a member

of NSE, BSE and HSE.

2. KARVY STOCK BROKING LIMITED:

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely

towards attaining diverse goals of the customer through varied services. Creating a plethora of

opportunities for the customer by opening up investment vistas backed by research-based

advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping

the customer create waves in his portfolio and empowering the investor completely is the

ultimate goal.

Karvy is a Member of National Stock Exchange (NSE), The Bombay Stock Exchange

(BSE), and The Hyderabad Stock Exchange (HSE).

3. KARVY INVESTORS SERVICES LIMITED:

Merchant Banking- Recognized as a leading merchant banker in the country, Karvy are

registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing

on opportunities in corporate consolidations, mergers and acquisitions and corporate

restructuring, which have earned us the reputation of a merchant banker. Raising resources for

corporate or Government Undertaking successfully over the past two decades have given us the

confidence to renew company focus in this sector.

Karvy quality professional team and their work-oriented dedication have propelled

company to offer value-added corporate financial services and act as a professional navigator for

long term growth of companies clients, which includes leading corporate, State Governments,

foreign institutional investors, public and private sector companies and banks, in Indian and

global markets.

4. KARVY COMPUTERSHARE PVT. LIMITED:

Karvy have traversed wide spaces to tie up with the world’s largest transfer agent, the

leading Australian company, Computer share Limited. The company that services more than 75

million shareholders across 7000 corporate clients and makes its presence felt in over 12

countries across 5 continents has entered into a 50-50 joint venture with KARVY.

Mutual Fund Services:

Karvy have attained a position of immense strength as a provider of across-the-board

transfer agency services to AMC’s, Distributors and Investors.

Nearly 40% of the top-notch AMC’s including prestigious clients like Deutsche AMC

and UTI swear by the quality and range of services that company offer. Besides providing the

entire back office processing, Karvy provide the link between various Mutual Funds and the

investor, including services to the distributor, the prime channel in this operation.

Issue Registry:

In company voyage towards becoming the largest transaction-processing house in the

Indian Corporate segment, KARVY have mobilized funds for numerous corporate, and emerged

as the largest transaction-processing house for the Indian Corporate sector. With an experience of

handling over 700 issues, Karvy today, has the ability to execute voluminous transactions and

hard-core expertise in technology applications have gained company the No.1 slot in the

business. Karvy is the first Registry Company to receive ISO 9002 certification in India that

stands testimony to its stature.

Corporate Shareholder Services:

Karvy has been a customer centric company since its inception. Karvy offers a single

platform servicing multiple financial instruments in its bid to offer complete financial solutions

to the varying needs of both corporate and retail investors where an extensive range of services

are provided with great volume-management capability.

5. KARVY GLOBAL SERVICES LIMITED:

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of

expertise and experience in financial services of the Karvy Group serves us well as company

enter the global arena with the confidence of being able to deliver and deliver well. Here

company offers several delivery models on the understanding that business needs are unique and

therefore only a customized service could possibly fit the bill.

KARVY is in re-engineering and managing processes or delivering new efficiencies,

company’s service meets up to the most stringent of international standards.Providing

productivity improvements, operational cost control, cost savings, improved accountability and a

whole gamut of other advantages. KARVY Operate in the core market segments that have

emerging requirements for specialized services. Their wide vertical market coverage includes

Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and

Entertainment, Energy and Utility and Healthcare.

6. KARVY COMMODITIES BROKING LIMITED:

At Karvy Commodities, they are focused on taking commodities trading to new

dimensions of reliability and profitability. They have made commodities trading, an essentially

age-old practice, into a sophisticated and scientific investment option.

Company enables trade in all goods and products of agricultural and mineral origin that

include lucrative commodities like gold and silver and popular items like oil, pulses and cotton

through a well-systematized trading platform. The technological and infrastructural strengths and

especially the street-smart skills make them an ideal broker. Their service matrix is holistic with

a gamut of advantages, the first and foremost being their legacy of human resources, technology

and infrastructure that comes from being part of the Karvy Group.

7. KARVY INSURANCE BROKING PRIVATE LIMITED:

At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life insurance

products to retail individuals, high net-worth clients and corporate. With the opening up of the

insurance sector and with a large number of private players in the business, they are in a position

to provide tailor made policies for different segments of customers. In their journey to emerge as

a personal finance advisor, they will be better positioned to leverage their relationships with the

product providers and place the requirements of their customers appropriately with the product

providers. With Indian markets seeing a sea change, both in terms of investment pattern and

attitude of investors, insurance is no more seen as only a tax saving product but also as an

investment product. By setting up a separate entity, we would be positioned to provide the best

of the products available in this business to the customers.

KARVY have wide national network, spanning the length and breadth of India, further

supports these advantages. Further, personalized service is provided here by a dedicated team

committed in giving hassle-free service to the clients.

8. KARVY ALLIANCES:

Karvy Computer share Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computer share Limited, Australia. Computer share Limited is world's largest -- and

only global -- share registry, and a leading financial market services provider to the global

securities industry.

The joint venture with Computer share, reckoned as the largest registrar in the world,

servicing over 60 million shareholder accounts for over 7,000 corporations across eleven

countries spread across five continents. Computer share manages more than 70 million

shareholder accounts for over 13,000 corporations around the world.

Karvy Computer share Private Limited, today, is India's largest Registrar and Share

Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

Distribution of Financial Products:

The paradigm shift from pure selling to knowledge based selling drives

the business today. With their wide portfolio offerings, they occupy all

segments in the retail financial services industry.

A 1600 team of highly qualified and dedicated professionals drawn from

the best of academic and professional backgrounds are committed to

maintaining high levels of client service delivery. This has propelled them to

a position among the top distributors for equity and debt issues with an

estimated market share of 15% in terms of applications mobilized, besides

being established as the leading procurer in all public issues.

To further tap the immense growth potential in the capital markets they

enhanced the scope of their retail brand, Karvy – the Finapolis, thereby

providing planning and advisory services to the mass affluent. Here they

understand the customer needs and lifestyle in the context of present earnings

and provide adequate advisory services that will necessarily help in creating

wealth. Judicious planning that is customized to meet the future needs of the

customer deliver a service that is exemplary. The market-savvy and the

ignorant investors, both find this service very satisfactory. The edge that they

have over competition is their portfolio of offerings and their professional

expertise. The investment planning for each customer is done with an

unbiased attitude so that the service is truly customized on market trends,

investment options, opinions etc.

3.6 ACHIVEMENTS:

1. Largest independent distributor for financial products

2. Ranking amongst the top 3 stock broking firms

3. Amongst the top 3 Depository participants

4. Largest network of branches and business associates

5. Ranking amongst top 10 investment Bankers.

6. First ISO-9002 certified registrars

7. Ranking amongst top 3 Mutual Funds distributors

8. Ranking 1st in retail procurement in equity IPOs.

9. Adjudged as one of the top 50 IT uses in India by MIS Asia

10. Fully Fledged IT driven operations ranking 8th in merchant

Banking services

INTRODUCTION

What are receivables? Receivables are sales made on credit basis.

Why do we need receivables?To increase total salesTo increase profitsTo meet increasing Competition

Understanding ReceivablesAs a part of the operating cycleTime lag between sales and receivables creates need for working capital