1. SUBMITTED TO:
PROF. LALIT KHURANA
Presented By:
GROUP 6
Neeraj Joshi (20131028)
Parth Shukla (20131031)
Raman Shahi (20131040)
Satish Tolani (20131048)
Vatsal Parmar (20131057)
Yogesh Fataniya (20131061)
2.
3. 2009 (INR) 2010 (INR) 2011 (INR)
Accounts
Receivable 4047000 7249000 10710000
Company gives
official credit of 60
days
Average actual
credit period of 120
days
Total collection
expenses = Rs.
2Lakhs
90% of company's
sales are Credit
sales
Marginal customers
= customers taking
goods from
company on credit
4. Sales of current year,
COGS remains same.
Gross Profit changes
due to revenue loss
from wave off
Collection charges and
bad debt remains
same.
Company’s net profit
increase by Rs.
922273.98
After change
in policy
5. 1
• Current sales increases by 10%
only in 75 days policy.
2
• Time value of money is added in
the second recommendation.
3
• Further Calculation is shown in
excel sheet.
6. Yes, It is relevant criterion as per
calculation shown. In past, the
average time period for
collection was of 120 days, due
to which we need to add time
value of money for the
remaining time.
