A Study On Accounts Recievables Management At Amara Raja Power Systems Limited

Abstract

Receivable management is a critical aspect of working capital management, significantly impacting a company's liquidity and financial performance. This study focuses on receivable management practices at Amara Raja Batteries Limited (ARBL), a leading manufacturer of automotive and industrial batteries in India. The primary objective is to analyze how effectively ARBL manages its accounts receivable, including credit policies, collection procedures, and aging of receivables. The research involves the examination of financial statements, receivable turnover ratios, and days sales outstanding (DSO) over a five-year period to assess trends and efficiency. The study also explores the challenges faced by ARBL in receivable management, especially in dealing with institutional clients, dealers, and fluctuations in demand. Based on the analysis, the paper highlights areas for improvement, such as stricter credit controls, enhanced monitoring systems, and use of digital tools for faster collections. The findings suggest that although ARBL maintains a reasonably efficient receivable cycle, there is scope for tightening credit terms and reducing overdue accounts to further improve cash flow and profitability. Effective receivable management can significantly enhance operational efficiency and support sustainable business growth for the company