CASH RECEIVABLES MANAGEMENT”AT “BHARAT HEAVY ELECTRICALS LTD

Abstract

This study aims to explore the effectiveness of cash management and accounts receivable practices by Bharat Heavy Electricals Limited (BHEL), entitled “Cash and Receivable Management at BHEL”. This review aims to investigate the cash and credit management system of the company, its liquidity analysis, as well as efficiency of receivable management in maintaining the financial stability and working performance of the business. It is the intention of this study to delve into the most important cash and credit segments of BHEL, monitoring financial trends and developments. It also aims to examine their credit policies, credit agreements and collection practices. The same with cash and receivable management and liquidity of BHEL as the target group. The type and nature of cash and credit management is also explored to learn what the organization’s strengths, weaknesses and areas requiring improvement, and is therefore very important for the management of financial statements. The study is derived from the analysis of financial statements, receivable turnover, liquidity ratios and internal credit management of BHEL. This information aids in evaluating to what extent the company works effectively with regards to its working capital utilization — especially cash and debtors — and how this works up within the financial health of the entire firm. Then, the report ends with findings and actionable recommendations for improved cash flow management and receivable collection efficiency. The above proposed actions are aimed support to management to be able to take rational financial decisions and building the effective working capital management system of the organization.