PRESENTATION OF

SUMMER INTERNSHIP PROJECT ON

Analysis OF CREDIT FINANCING & BANKING

IN

PREPARED BY-:

ADITI SEHGAL MBA- 3RD SEM

ABOUT ADIDAS…

In 1920, its founder Adi Dassler made his first shoes using the few materials available after first world war.

In 1949, he got it registered and from then on its headquarters are in Germany.

Their product range extends from footwear and apparels to accessories for all kinds of different sports.

Adidas India marketing Pvt Ltd. is joint venture with adidas & Magnum International Trading Company.

92% stake is with adidas and rest with Magnum International Trading Company.

It has more than 500 stores in India.

OBJECTIVES OF THE STUDY

To understand the working of credit control.

To determine & analyze the net sales made by the company during the last four months.

To determine how many new customers were made by the customers.

To determine & analyze how much collections have been made from the customers in last 4 months.

To analyze customer ageing of last four months.

To determine & analyze manual journal voucher’s issued by the company.

  CUSTOMER AGEING (OUTSTANDING) DURING THE MONTH

COLLECTIONS DURING THE MONTH

050

100150200250300350400

MAR'10 APR'10 MAY'10 JUNE'10

Colle

ction

s

Month

Collections done during the month

Collections

NEW CUSTOMER OPENING DURING THE MONTH

0

20

40

60

80

100

120

MAR'10 APR'10 MAY'10 JUNE'10

No.

of cu

stom

ers

Month

New Customer Opening during the month

New Customer Opening

NET SALES DURING THE MONTH

050

100150200250300350400450

MAR'10 APR'10 MAY'10 JUNE'10

Sale

s

Month

Net Sales during the month

Net Sales

MANUAL JOURNAL VOUCHER’S ISSUED DURING THE MONTH

0

20

40

60

80

100

120

140

MAR'10 APR'10 MAY'10 JUNE'10

Jour

nal v

ouch

ers

Month

Manual JV'S issued during the month

Manual JV'S

BAD DEBTS DURING THE MONTH

0

20

40

60

80

100

120

MAR'10 APR'10 MAY'10 JUNE'10

Bad

debt

s

Month

Bad-debts during the month

Bad-debts

FINDINGS

It has been found that the amount that is not due is decreasing whereas the amount that is due in 60 days is increasing.

The collections have increased in the last four months.

adidas India Marketing Pvt ltd has made more than 200 new customers in the last four months.

The company’s net sales have been decreasing. In March, the net sales were worth 414.08 mio and it decreased to 222.79 mio in june.

The company’s bad-debts in the month of May increased to 111.52 mio, and then in month of June it decreased to 97.14 mio.

In the month of March, the company issued manual journal vouchers worth 116.62 mio & then in june it decreased to 79.30 mio.

SUGGESTIONS

To maintain liquidity in the company, it is suggested that the amount outstanding to the customers should be kept minimum.

To achieve the targets set by the top management & at the same time to increase market share, the company should open more stores.

To maintain liquidity and for effective functioning, the company should receive payments on time.

To increase the profitability, it is suggested to increase the net sales of the company.

It is also suggested to decrease the bad-debts of the company.