A Study on Impact of Accounts Receivable on Working Capital and Profitability at S. H. Kelkar Ltd Company, Mumbai

Accounts receivable (AR) refers to money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for Receivables usually come in the form of operating lines of credit and are usually due within a relatively short time period, ranging from a few days to a year. The objective of the debtor management is to minimize the time-lapse between completion of sales and receipts of payment. The management of accounts receivable is largely influenced by the credit policy and collection procedure of a firm. Accounts receivable represents the rate at which the firms collects payments from its customers. Excessive level of accounts receivable ratio on profitability may lead to negative effect. The paper is based on Receivables Management. The main objective of the project was to find out the efficiency of receivables management. The other objectives were to assess the impact of receivables management on working capital and profitability of the organization.