project synopsis swati mba iv

8/2/2019 Project Synopsis Swati Mba IV

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PROJECT SYNOPSIS

Title of the Project: A STUDY OF RECEIVABLE MANAGEMENT AND ROLE

OF e-PAYMENT IN INDIAN OIL CORPORATION LTD.

Organization/Company:

Name of Organization: Registered Office: Indian Oil Bhavan,

G-9, Ali Yavar Jung Marg,

Bandra(East), Mumbai-400 051

Corporate Office: 3079/3, Sadiqnagar,

J B Tito Marg,New Delhi- 110 049

Functional area: Finance

Nature of the organization and its business:

Introduction of the Topic:

A sound managerial control requires proper liquid management of liquid assets and

inventory. These assets are a part of working capital of the business. An efficient use of

financial resources is necessary to avoid financial distress. Receivables result from credit

sales. A concern is required to allow credit sales in order to expand its sales volume; it is not

always possible to sell goods on cash basis. Sometime other concern in that line might

establish a practice of selling goods on credit basis. Under these circumstances it is not

possible to avoid credit sales without adversely affecting sales. The increase in sales is also

essential to increase profitability. After a certain level of sales this increase in sales will not

proportionately increase production costs. The increase in sales will bring in more profits.

Receivables constitute a significant portion of current assets of a firm. But for investment in

receivable a firm has to incur certain costs. Further there is a risk of bad debts also. It is

therefore very necessary to proper control and management of receivables.

Cash is the most important component of current assets; therefore the firm basic strategies are

to reduce the operating cash requirement. The company’s aim is to accelerate the collectionof receivables so as to reduce the average collection period. The receivables represent an

important component of current assets of a firm. The purpose of this analysis is the important

dimension of efficient management of receivables within the framework of a firm objective

of value maximization.

Objectives, Scope & Hypothesis:

Objectives of The study:(You can’t manage what you don’t measure)

To find the Trend of the Sales and Debtors of the Company and to find a relation

between the two.



To find out the Average Collection period of Various Customers, DGS&D and Non

DGS&D.

To analyse the Cash Conversion Cycle and the Liquidity of the Company.

To analyse the Working Capital of the Company and how it can be regulated.

To find out the different Ratios related to Liquidity and Profitability of the Company

and compare them with the competitors like HPCL and BPCL To know the Credit Policies of IOCL for different Customers.

Analyse the efficiency of different Collection Procedures with special emphasis on

the e-Collection Mode like RTGS and Core-to-Core banking.

Scope of the study:

The study aims at analyzing the debtors and outstanding. It is hope that this study will

help the company in reducing its investment in receivable collection with the help of

e-payment methods.

Research Methodology:

The methodology followed in this project involved the following Phases:

Research design: The project is descriptive and analytical in nature.

Instrument used: Financial statements & Secondary data

Analytical Tools: Statistical tools & Ratio analysis

Collection of Data: Data required for the project e.g. Balance Sheet,statement of Profit & Loss Account etc. were collected from the annual

reports of IOCL, for the period of 2005-06 to 2009-10. Besides for

Explanation of several issues, different articles, Internet data’s, books etc

were consulted. The data collected are Secondary & Published Data. Few data

have been collected from the SAP module used in IOCL

Analysis of Data: For the comparative analysis ratio’s were used along with

graphs, charts, and necessary diagrams. The current year has not been taken

into calculation in many ratios because, at that time of preparation of this

report the Annual Report was not published.

Interpretation & Recommendation:After completion of the entire analysis, interpretation & recommendation were made

on the basis of figures and diagrams.

Bibliography & Web links:

http://www.iocl.com http://www.hpcl.com http://www.bpcl.com http://myiris.com/shares/research/motilal/INDOILCO_20100129.pdf http://www.dart-creations.com/article-tree/dbt/Debt_Collections_Law.html



http://www.profitera.com/pdfs/A%20Formula%20for%20Success_Karl%20Boone_Ia

n%20Roberts.pdf

http://www.articlesbase.com/finance-articles/debt-collection-techniques-420145.html

project synopsis swati mba iv

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