Authors :
PRAVEEN P T
Volume/Issue :
Volume 5 - 2020, Issue 3 - March
Google Scholar :
https://goo.gl/DF9R4u
Scribd :
https://bit.ly/2U8XkDo
Abstract :
In finance and accounting department there are many terms, but the one which made me anxious is
credit analysis for an organization. There are many risks related to credits, especially for the company’s
capital. The credit analysis process may vary based on different industries. Therefore, have chosen to do
a study based on a manufacturing industry, by undergoing an internship to know more about it’s real
time scenario on credit analysis. The organization name is Husky injection molding systems located at
Chennai. The objective of this paperwork to use different accounting tools for assessing the risk factors;
from the company perspective on its customers majorly ratio analysis helps to identify the capability,
capacity of the repayment power of a customer with the help of organization’s financial statement. By
default, risk analysis is an important assessment which needs to be fallowed as it’s necessary for crucial
business situations.
The company holds huge volumes of customer related data from which they are unable to arrive at a
judgment if an applicant has the ability or not. 5c’s of credit analysis is a promising area of credit
analysis which aims to extract useful knowledge from the tremendous amount of complex data sets.
Based on the review of 5c’s the credit analysis has been implemented on selected customers, and the
source data have been collected from their annual report. Analysis of response indicates the customer
business strength is good or bad. In this basic it will recommend for decide the payment term of advance
payment and net due days.
The account payable of the company is fully depends upon the account receivable so the credit
analysis plays the important role in account receivable. This study uses Altman’s Z-score model which
helps to estimate whether there is any possibility of repayment when the customer failed to repay the
contracted loan obligations. To understand the efficiency and various sources of credit analysis are what
the project further going to be explained on.
In finance and accounting department there are many terms, but the one which made me anxious is
credit analysis for an organization. There are many risks related to credits, especially for the company’s
capital. The credit analysis process may vary based on different industries. Therefore, have chosen to do
a study based on a manufacturing industry, by undergoing an internship to know more about it’s real
time scenario on credit analysis. The organization name is Husky injection molding systems located at
Chennai. The objective of this paperwork to use different accounting tools for assessing the risk factors;
from the company perspective on its customers majorly ratio analysis helps to identify the capability,
capacity of the repayment power of a customer with the help of organization’s financial statement. By
default, risk analysis is an important assessment which needs to be fallowed as it’s necessary for crucial
business situations.
The company holds huge volumes of customer related data from which they are unable to arrive at a
judgment if an applicant has the ability or not. 5c’s of credit analysis is a promising area of credit
analysis which aims to extract useful knowledge from the tremendous amount of complex data sets.
Based on the review of 5c’s the credit analysis has been implemented on selected customers, and the
source data have been collected from their annual report. Analysis of response indicates the customer
business strength is good or bad. In this basic it will recommend for decide the payment term of advance
payment and net due days.
The account payable of the company is fully depends upon the account receivable so the credit
analysis plays the important role in account receivable. This study uses Altman’s Z-score model which
helps to estimate whether there is any possibility of repayment when the customer failed to repay the
contracted loan obligations. To understand the efficiency and various sources of credit analysis are what
the project further going to be explained on.
