Presentation 1
Presentation 1
Presentation 1
GROUP 10
Summary
A 2 day workshop on HUMAN VALUES Participated by 24 top managers including
CEO Lead to the discussion on payment to debtors and creditors. Managers shared their views about authentic intent and policies.
Q. 1) SHOULD THERE BE A CLEAR FIXED POLICY REGARDING COLLECTION OF OUTSTANDING FROM DEBTORS ?
A Clear Policy and not a Fixed Policy Plays vital role in building strong relationship between Company and its
Debtors.
The policy should be clear one and not a fixed one. It should be in line with the market conditions.
During recession period the Debtors will not be in a position to pay their debts
on time. And therefore in such situation company should follow Flexible Policy by giving additional period to Debtors for payment.
Debtors Policy
then there are chances of losing its customer base
expecting that our suppliers should give flexible payment options, then we should also give same treatment to our customers.
Creditors
A well thought-out payment policy is a vital part of building a
strong and trusting relationship with its suppliers and other creditors.
Effective management of creditors is one of the easiest ways for
As the company is dependent on its suppliers for its raw materials and other resources which are necessary for running its operations smoothly
if the company fails to fulfill its obligations to its Creditors on
time then the Creditors may not like to deal with the company in future which will affect the functioning of company .
If company has any difficulties in making payments to their suppliers at some time. It is essential to open discussions with suppliers as soon as possible to advise them of the issues and negotiate a payment plan. Open and honest dialogue with suppliers will build trust and enable them to provide support during
difficult times.
Q.3
Differential Policy of making Payments to
Large Monopolistic Suppliers Small Suppliers
Small suppliers
Ethically not right
But necessary to manage working capital needs
Q.4
Comments on actions of TELCO?
Not unethical as far as the parties concerned are
Thank You