LV Thạc sỹ_Account receivable management in Viglacera packings and brake JSC

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM ***************************** BACHELOR’S THESIS IN FINANCE Account Receivable Management in Viglacera Packings and Brake Linings Joint Stock Company ACKNOWLEDGEMENT My thesis is completed with support of Dr…., Mr…, all employees in Viglacera P&B Co, my friends in Advanced Finance Intake 50 and my family First of all, I would like to give special thanks and deepest gratitude to my supervisor, Dr …, for her advices and instructions They are very helpful for me in building the frame of my report And her comments help me completed this report in the best way I also want to thank Mr … – chief accountant in the company I internshiped He is very enthusiasm for providing me all data and information I needed His guides about professional knowledge are really supportive for me My gratitude is also sent to all officers in Finance-Accounting Department for their guides Thanks to them, I get lots of useful working experiences through this internship period And it is my honor to work with them I highly appreciate all opportunities that I have been provide to practice and learn about real business operations, as well as apply what I got from university to solve real problems I want to thank all my classmates in Advanced Finance Intake 50 for their great advices and creative ideas Finally, I offer my regards to my family for the support and encouragements TABLE OF CONTENTS ACKNOWLEDGEMENT i TABLE OF CONTENTS .ii ABSTRACT v ABBREVIATION .vi LIST OF TABLES .vii LIST OF FIGURES viii INTRODUCTION CHAPTER THEORETICAL FRAMEWORK OF ACCOUNT RECEIVABLE MANAGEMENT 1.1 Account receivable: 1.1.1 Definition: 1.1.2 Content of account receivables: 1.1.3 Roles of account receivables for an enterprise: 1.2 Account receivables management: 10 1.2.1 Definition: 10 1.2.2 Roles of account receivables management: .11 1.2.3 Account receivables management processing: 11 1.2.3.1 Trade credit policy: 12 1.2.3.2 Analysis of customers’ prestige (6 C’s of credit): 16 1.2.3.3 Analysis of the proposed credit amount: 19 1.2.3.4 Monitoring account receivable: .19 1.2.3.4.1 Days sales outstanding (DSO): 20 1.2.3.4.2 Aging schedules: 21 1.2.3.4.3 Credit ratings: .22 CHAPTER THE CURRENT SIATUATION OF ACCOUNT RECEIVABLE MANAGEMENT IN VIGLACERA P&B CO 24 2.1 Overview of Viglacera Packings and Brake Lining Joint Stock Company: 24 2.1.1 The process of establishment and development of Viglacera P&B Co: 24 2.1.1.1 General information: .24 2.1.1.2 The history of establishment and development: .24 2.1.2 Major business activities: 26 2.1.3 Organizational structure: 29 2.1.4 The market situation and competitors: 30 2.1.5 Business results in three recent years: .31 2.2 The current situation of account receivable management in Viglacera P&B Co: 34 2.2.1 Account receivables in Viglacera P&B Co: 34 2.2.2 Account receivable management in Viglacera P&B Co: 37 2.2.2.1 The current trade credit policy of Viglacera P&B Co: 37 2.2.2.2 Monitoring account receivables: 39 2.2.2.2.1 Days sales outstanding: 39 2.2.2.2.2 Aging schedule: 40 2.3 Achievements and shortcomings of account receivable management in Viglacera P&B Co: 41 2.3.1 Achievements: 41 2.3.2 Shortcomings: 42 2.3.3 Reasons for shortcomings in Viglacera P&B Co’s account receivable management:.43 2.3.3.1 Subjective reasons: 43 2.3.3.1.1 The company’s selling policy: 43 2.3.3.1.2 Human resource: 44 2.3.3.1.3 Technology: 44 2.3.3.1.4 Credit policy: 44 2.3.3.1.4.5 Monitoring account receivable: .49 2.3.3.2 Objective reasons: 45 2.3.3.2.1 Business environment: 45 2.3.3.2.2 Dishonesty of customers: 46 CHAPTER SOLUTION TO IMPROVE ACCOUNT RECEIVABLES MANAGEMENT IN VIGLACER P&B CO 47 3.1 Development orientation of Viglacera P&B Co in following years: 47 3.1.1 Development orientation: 47 3.1.2 Financial objectives: 47 3.1.3 Account receivable management objectives: 47 3.2 Solutions to improve account receivable management in Viglacera P&B Co : 47 3.2.1 Human resources: .47 3.2.2 Technology: 48 3.2.3 Credit policy: 49 3.2.4 Monitoring account receivable: 56 3.2.4 Other solutions: 51 CONCLUSION 52 REFERENCES APPENDIX A Income Statement APPENDIX B Balance Sheet INTERNSHIP REPORT ASSESSMENT ABSTRACT As a student of National Economics University and especially as a finalyear student, I want to practice all my knowledge about economy, market, finance, etc that I learned from my lecturer and by myself And in the internship period, I have opportunity to practice in Viglacera Packings and Brake Linings Joint Stock Company (Viglacera P&B Co) – a small and medium company to carry out my knowledge to reality In a more and more complicated business environment as nowadays, a good management will help the company be more successful than its competitors After researching Viglacera P&B Co’s business performance in recent years and receiving consultants from many people, I decide to choose the topic about account receivable management Through my thesis, we will know achievements and shortcomings in Viglacera P&B Co’s account receivable management And in conclusion, I give my own solutions and recommendation to help Viglacera P&B Co solve its problem in account receivable management This thesis might get into inevitable issues and lead to further questions due to limited knowledge, therefore I would be grateful to receive any constructive comments to help my thesis better and have more practical value ABBREVIATION CFO: Chief Financial Officer DSO: days sales outstanding ACP: average collection period ADS: average daily sales LIST OF TABLES Table 1: Example of aging schedule 21 Table 2: Viglacera P&B Co’s quantity and price of goods sold from 2009-2011 .32 Table 3: Key financial indicators of Viglacera P&B Co .33 Table 4: Structure of account receivables in Viglacera P&B Co 35 Table 5: Structure of account receivables from customers 36 Table 6: Viglacera P&B Co’s days sales outstanding 39 Table 7: Viglacera P&B Co’s aging schedule .40 LIST OF FIGURES Figure 1: Principle of account receivable management processing 11 Figure 2: The process of analyzing the customers’ prestige .16 Figure 3: Organizational and managerial structure .29 Figure 4: Sales and profit growth .31 Figure 5: Value of account receivables compared to total assets 34 INTRODUCTION Rationale: Vietnam is integrating more and more deeply into world economy This is expressed through the active participation of Vietnam in economic forums in the world Vietnam has commercial relations with more than 165 nations and diplomatic relations with over 171 countries in all continents It is also the place where have hosted many conferences of organizations like ASEAN, APEC, ASEM, etc And becoming the 150th member of WTO in 2007 is a major turning-point for Vietnam This opened many development opportunities for home enterprises such as expanding the market, accessing to modern technology and investment capital sources from foreign countries However, it also brings difficulties like increasing competition pressure for Vietnamese enterprises because of entering of many foreign brand names; increasing risk of bankruptcy for weak companies, etc In general, as integrating, Vietnamese economy will be more influenced by fluctuations of the world economy In the last months of 2008, we witnessed what is being called the worst financial crisis since the Great Depression of 1929-30 In 2009 and 2010, the world economy still suffered repercussions of that crisis; just some economies had sign of recovery And in 2011, again, the world experienced another economic crisis We can see its influences clearly on Vietnamese enterprises though media channels and newspapers There are so many enterprises having difficulties, stopping production or even going bankrupt Hard economic conditions like high interest rate, inflation, increases in the price of raw materials, petrol, gas, etc make business environment more arduous As one of results, debts between enterprises and banks or between enterprises are growing Sometimes customers – are individuals or most are other enterprises - buy products on credit Especially with the current situation, because of lacking capital, customers mainly buy on credit Then, this transaction creates debts among enterprises and those debts are recorded as account receivable in asset side of balance sheet of the enterprise that is seller Managing debts means managing account receivables With huge amount, account receivables have large effect on business 43 In recent years, Viglacera P&B Co always follows closely the process of collecting account receivables, hence it don’t have unrecoverable debts There are bad debts but at small volume and the ages of overdue debts are often not over year, except in 2011 This is a remarkable attempt to supervise and speed up the debt collection The relationship between the company and its suppliers is good, it has high prestige towards suppliers because most of suppliers don’t require in few recent years This helps to limit advanced payments to suppliers, then limit the amount of appropriated capital and decrease account receivables From 2009 to 2011, although there are many fluctuations in the world economy generally and Vietnamese economy particularly, Viglacera P&B Co’s account receivables from customers (main proportion of account receivables) are extended the ages but are still in safe and stable range Market of carton packagings and brake pads always has fastidious customers (especially for brake pads, because this is the kind of products requiring high precision and safety) and high competition However, the company has appropriate credit standards for each contract, each customers Although the extent and efficiency of application is not high, it reflects the company’s efforts 2.3.2 Shortcomings: The efficiency of account receivable management is low: account receivable turnover is small and average collection period is long Besides the benefits from flexibility of current collection policy, there are also opposite effects for customers who are often delinquent The amounts that are appropriated too much and in too long period of time by customers will lose very large opportunity cost, the interest of those debts are often low, doesn’t bring any benefit for the enterprise In account receivable management, the company has used analytical techniques, made a list of account receivables based on balance volume, and classified debts in order to have methods to supervise and speed up collecting debts It proves 44 that the company cares about bad debts, but passively It only can deal with bad debts when they really happen and risks are relatively clear And except coercive sanction by law, the company doesn’t have any other method that is more effective to bind customers repay debts This fact requires the company measures to prevent risks so that it can administrate bad debts more actively System of collecting information to assess customers’ prestige is mainly based on customers’ transactions with the company itself in the past Thus for new customers, collecting customers’ information has many difficulties It directly affects decision of cooperating between company and potential customers Viglacera P&B Co’s credit policy is not strict enough It causes losses for the enterprise, especially when number of delinquent customers increases much An incomplete credit policy will create many risks in transactions No matter how good relationships between the company and its customers are and how strong its partners’ financial capability is, these cannot ensure cooperation not be broken in the future because in the business, you can’t rely forever on trust Implementation of the credit policy has not been properly concerned It is not adjusted along with conditions of business environment Viglacera P&B Co doesn’t have mechanism to monitor or check implementation of credit policy to ensure it be done seriously Moreover, the company does not have any measures to prevent financial risk for accounts receivables, as well as to handle the bad debts in the future 2.3.3 Reasons for shortcomings in Viglacera P&B Co’s account receivable management: 2.3.3.1 Subjective reasons: 2.3.3.1.1 The company’s selling policy: Because the company’s selling policy is wholesale, value of a contract is often large In addition, customers mainly choose the form of purchase is on credit for many reasons: customers is lacking of capital or they want to check goods first No matter what reasons are, it makes account receivables increase more than for the company with retail trade (instantly receive money) 45 2.3.3.1.2 Human resource: Managerial and professional qualifications of employees in Viglacera P&B Co are not high In Viglacera P&B Co, managing account receivables is assigned for a chief accountant and other accountants associated with the sales department And in reality, accountants of the company only have general knowledge about accounts receivable management They deal with situations based on their own experiences, not pass any advanced training They can’t detect or analyze implicit risks The coordination between divisions within the company is not really effective, particularly between account-finance and sales department Due to the goal of increasing sales, sales department gives many incentives for customers, including credit incentives However, when customers don’t repay debts on time, it causes difficulties for account-finance department in the debt recovery 2.3.3.1.3 Technology: Accountants use computer to store customers’ information and monitoring account receivables but they just work on normal tools of Microsoft like Word, Excel, Access, etc Besides those things, the company doesn’t use any software to support for calculating and administrative because of complication 2.3.3.1.4 Credit policy:  Credit standards: With the purpose of promoting customers to buy company’s products and hence increasing revenue, Viglacera P&B Co often lowers payment terms, and extends debt collection time-limit These things are in favor of customers However, many customers exploit them to delay their payments for too long period of time until the company must remind too many times and is going to use law For familiar customers, because the company cooperated with them for many years, there is a trust taken shape between the company and customers So, the company is very subjective It doesn’t build or applied firmly a completed and clear 46 credit policy It also doesn’t apply penalty interest rate when familiar customers’ debts are overdue because it doesn’t want to displease them In addition, yearly the company doesn’t review credit status of former customers There are the cases customers’ financial capacity decreased significantly, but the company doesn’t know and still grant credit with normal conditions Plus, the company has never had unrecoverable debt So it doesn’t have any methods to prevent risks and solve bad debts All above things are reasons for inefficiency in account receivable management  Credit period: Viglacera P&B Co’s credit period is fixed at 30 days for all customers It is not flexible so that cannot stimulate customer pay debts on time  Discount: Viglacera P&B Co doesn’t apply any discount This also cannot stimulate customer pay debts early  Collection policy: Methods the company uses to collect mature debts are sending a letter or making a call These methods are usually as not effective as direct collection 2.3.3.1.5 Monitoring account receivable: In monitoring account receivables by aging schedule, Viglacera P&B Co adds up in-maturity and over debts in same category This sometimes causes difficulties or mistakes for accountants to follow 2.3.3.2 Objective reasons: 2.3.3.2.1 Business environment: The world economy entered a very difficult phase in 2008 In 2009, 2010, it had signal of recovery But in 2011, it again experiences a new crisis Very hard business environment also happens in Vietnam It affects to financial situation and ability to repay debts of home enterprises To cope with global financial crisis, control inflation, stabilize the macro-economy and ensure social security, Vietnamese government’s 47 policies is tight fiscal and monetary policy Plus lending interest rate is still high Although SBV announce lending rate is between 17-19%, enterprise still must borrow at over 20% Borrowing from banks is very difficult Thus, as general situation of Vietnamese enterprise, many Viglacera P&B Co’s customers have difficulties in capital They cannot pay in full or at maturity This makes account receivables of Viglacera P&B Co increase in recent years 2.3.3.2.2 Dishonesty of customers: Some customers hide true information about their financial capacity or solvency through fake financial reports And the company doesn’t methods to investigate because it doesn’t have supports from banks 48 CHAPTER SOLUTION TO IMPROVE ACCOUNT RECEIVABLES MANAGEMENT IN VIGLACER P&B CO 3.1 Development orientation of Viglacera P&B Co in following years: 3.1.1 Development orientation:  Remain position as a leading friction material manufacturer  Update new and modern technology into production and administration to save costs and improve products so that the company’s products are able to meet     international conditions about quality, then are able to export Extend market to the south Seek for new customers Achieve output production and consumption as high as possible Decrease inventories and input costs at least level 3.1.2 Financial objectives:  Increase market share of brake pads in the north from 15% to 20%, in the south from 5% to 7%  Level of increase in profitability ratio is 6.5% based on the company’s business performance in three recent years and prospect in the following years 3.1.3 Account receivable management objectives: Perform account receivable management more flexibly in order to increase the speed of collecting debts, increase bad debts, and then create capital for business activities of the company 3.2 Solutions to improve account receivable management in Viglacera P&B Co : 3.2.1 Human resources: In order to manage account receivables effectively, both employees and managers responsible for this task need professional knowledge related to financial management, especially account receivable management and experiences in the 49 business world Another decisional factor is the sound guide and direction of leaders in the company In general, leaders and managers’ point of view will decide policies and model of account receivable management Indeed, Viglacera P&B Co has to enhance professional knowledge as well as managerial skills for all people that are in charge of account receivable management And to this, the company needs to appoint current employees to study classes of management in schools or training establishments at home or abroad (if employees have enough level or foreign languages and commit to work in long-term period of time for the company) When necessary, the company can recruit new employees and right from this recruitment, it must choose people that have enough knowledge, skills and particular experiences and can analyze well financial data At present, account receivable management is task of accounting-finance department But for more effectively, Viglacera P&B Co should establish another department (under or completely separate from accounting-finance department but still associated with this department) that is only responsible for monitor account receivables Assigning personnel to work at position in accordance with their speciality will maximize their capacity or fortes, and help to increase efficiency in management Simultaneously, Viglacera P&B Co needs to improve the effectiveness of combination between accounting-finance, sales, planning and production department It is necessary to determine that financial management or account receivable management is the responsibility of all departments in the company The company must make all related employees know the importance of debts collection task If account receivable management is cared and shared properly, all related division in the company have active cooperation, firmly efficiency and quality of account receivable management will increase 3.2.2 Technology: In the world, even in Vietnam, there are many softwares of financial tools that support for account receivable management such as SUN, i-bigTimes, etc Viglacera P&B Co should use these things in order to replace traditional methods It will help the 50 company save time and costs Especially, it is very convenient because users can monitor account receivables based on categories like age, value, kind of customer, etc However, updating new technology in account receivable management addresses a requirement that employees must know how to use To solve this, Viglacera P&B Co should have computer engineers right in the company for the purpose of training employees or fixing mistakes 3.2.3 Credit policy: Viglacera P&B Co needs improve its credit policy in the aspects as follows:  Credit standards: Viglacera P&B Co should still maintain loosening credit standards for customers but just to the extent that expected incremental profit is greater than or at least equal to costs related to account receivables And this loosening must be adapted to be suitable for each customer In order to determine the level of loosening but still ensuring safety for the company, to make correct credit decision, the company must exactly right from first step that is assessing customer’s prestige Before deciding to grant credit, Viglacera P&B Co needs to investigate carefully customers’ information like ability to pay, financial capabilities, collaterals, etc Besides, the company must define the level of risks and the rate of losses For new customers, Viglacera P&B Co should be more careful in collecting customers’ information It should base on different sources, not just rely on introduction of familiar customers For example: information provided by new customers themselves like historical purchase with other companies, financial reports; or information collected by financial institutions (banks, credit institutions) With customers’ information collected by banks, the company can feel secure because banks often have professional consulting services, wide information network with high accuracy and confidence For current customers, the company must frequently re-assess their credit status, at least once a year 51 After granting credit for customers, the company should gather their responses to company’s credit policy in order to know whether current policy is appropriate and effective or not and then eliminate shortcomings In many cases, customers can accept or reject to trade with company after looking at credit policy So customers’ response is very important Viglacera P&B Co’s classifying customers also needs to be improved At present, the company just list (not classify) customers with their balance of account receivables in the end of each period The purpose of this listing is that the company can know a customer has how many debts left However, this method has a big limitation A customer can have highest balance in the end of this period but in reality, their payment dateline doesn’t come Indeed, besides this method, Viglacera P&B Co should group customers by categories such as: business purpose (resale or direct consumption), customer relationship (traditional, new or potential)  Credit period: Viglacera P&B Co should increase payment period to 60 days This will allow customers have enough time to distribute goods for their agents and conduct payment procedures and limit appearance of overdue debts  Discounts: At present, Viglacera P&B Co doesn’t apply any discounts for customers It just allows customers a specific payment period and when debts are overdue, it will apply penalty interest rate based on bank’s interest rate This doesn’t stimulate customers to pay debts on time So, appropriated capital by customers is very big If the company applies discounts, decrease selling prices for contracts with huge value, regular customers and customers paying soon, it will promote them pay earlier because they want get discounts The company’s capital won’t be appropriated for too long time A suitable discount rate should be determined as follows: Bank’s deposit interest rate < competitors’ discount rate < the company’s discount rate< lending interest rate 52 With this determination, the company’s discount rate is always higher than its competitors’ but lower than lending interest rate This both promotes customers pay soon and ensures benefits for the company  Collection policy: Viglacera P&B Co should collect debts directly at customers’ office or ask help from companies specializing in collecting debts and consultancy of lawyers 3.2.4 Monitoring account receivable: When using aging schedule method to monitor account receivables, Viglacera P&B Co should separate clearly in-maturity and overdue debts into different categories It will be easier and quicker for accountants 3.2.5 Other solutions:  Monitor frequently balance of account receivables, days sales outstanding, account receivables turnover and especially overdue debts  Strengthen supervising and speeding up customers’ payment processing  Summarize account receivable management, learn from experience quarterly or yearly  Update economic situation in the world and in Vietnam to have appropriate trade policies and methods for company’s partners  Entrust to the bank to conduct debt collection procedures  Ask law authorities to intervene for too delaying customers  Adapt payment dateline or deleted a part of debt for customers, if appropriate, in order to avoid increasing bad debts 53 CONCLUSION In three recent years, Viglacera P&B Co’s account receivable management achieved specific successful such as there is no unrecoverable debts There are bad debts but at small volume and the ages of overdue debts are often not over year Current credit policy helps the company build good relationship with current customers based on conditions favorable for them, create good impression for potential customers and ensuring competitive position of the company in the market However, Viglacera P&B Co’s account receivable management still has some shortcomings Ineffective management caused account receivable turnover decrease and days sales outstanding increase There are several things in credit policy that are still not suitable for customers like no discount, fixed credit period These caused many limits in collecting bad debts To solve shortcomings in Viglacera P&B Co’s account receivable management, I recommend that it should be enhance professional and managerial knowledge for its employees, update modern softwares and financial tools that support for account receivable management and make some appropriate change in its current credit policy Due to limitation of time and knowledge, it is unavoidable for my research to have mistakes I’m looking forward to receive your comments In sincerely thanks Dr…, Mr…., and other people helped me to complete this thesis 54 REFERENCES Vietnamese: Giáo trình: Chiến lược kinh doanh phát triển doanh nghiệp PGS.TS Nguyễn Thành Độ TS Nguyễn Ngọc Huyền- NXB LĐ-XH; 2005 Tìm hiểu thị trường sản xuất kinh doanh - PTS Hồng Bình- NXB Tp.HCM – 2007 Báo cáo kết hoạt động sản xuất kinh doanh Công ty Cổ phần Bao bì Má phanh Viglacera (2009 - 2011) English: Intermediate Financial Management 6th edition by Bringham and Daves Websites: http://www.blc.com.vn http://www.saga.vn http://www.google.cn 55 APPENDIX A Income Statement Unit: VND Items 31-12-2011 31-12-2010 31-12-2009 48,084,825,913 44,165,065,581 41,574,833,962 38,663,183 4,723,030 1,054,161 Net revenue from sales and services 48,046,162,730 44,160,342,551 41,573,779,801 Cost of goods sold 38,786,247,876 35,569,309,565 32,928,592,499 9,259,914,854 8,591,032,986 8,645,187,302 308,211,339 11,025,362 377,159,058 Financial expenses 2,512,567,498 2,672,712,022 2,876,111,508 Selling expenses 3,074,273,880 3,113,510,763 3,021,893,620 Revenue from sales and services Depreciations Net income from sales and services Revenue from financial activities Administrative expenses 3,394,973,094 2,739,322,921 10 Net income from business activities 586,311,721 76,512,642 345,979,449 11 Other revenues 978,018,120 1,443,274,873 432,366,906 12 Other expenses 67,431,385 925,209,632 31,509,478 13 Other net income 910,586,735 518,065,241 400,857,428 1,496,898,456 594,576,883 746,836,877 15 Taxes 624,224,614 148,644,221 130,696,453 16 Net income after taxes 872,673,842 445,392,662 616,140,424 14 Net income before taxes 2,778,361,783 56 APPENDIX B Balance Sheet Unit: VND Items 31-12-2011 31-12-2010 31-12-2009 ASSETS 41,931,773,811 37,000,553,888 43,029,507,013 A Current assets 33,712,929,542 30,212,259,922 37,207,142,667 Cash and cash equivalents 1,260,752,950 1,305,117,670 1,543,041,905 - - 6,550,000,000 Account receivables 24,305,545,399 20,260,540,985 19,775,248,548 Inventories 7,642,608,593 8,088,602,787 8,756,836,650 Other current assets 504,022,600 557,998,480 582,015,564 B Long-term assets 8,218,844,269 6,788,293,966 5,822,364,346 Fixed assets 7,988,144,269 6,557,593,966 5,822,364,346 Tangible fixed assets 5,816,861,354 4,381,333,978 3,507,527,068 Intangible fixed assets 1,938,095,235 1,652,380,947 1,366,666,659 Cost of construction in progress 233,187,680 523,779,041 948,170,619 Long-term investments 230,700,000 230,700,000 - LIABILITIES AND SHAREHOLDERS’ EQUITY 41,931,773,811 37,000,553,888 43,029,507,013 A Liabilities 28,715,927,234 23,932,920,830 28,522,157,282 Current liabilities 28,515,493,723 23,737,495,319 28,326,730,771 200,433,511 195,425,511 195,425,511 13,215,846,577 13,067,633,058 14,507,349,731 Short-term investments Long-term liabilities B Shareholders’ equity 57 INTERNSHIP REPORT ASSESSMENT Signature of supervisor ... practice in Viglacera Packings and Brake Linings Joint Stock Company (Viglacera P&B Co) – a small and medium company to carry out my knowledge to reality In a more and more complicated business... account receivable management is really important for an enterprise Through the internship period in Viglacera Packings and Brake Linings Joint Stocks Company, I realized some problems in account receivable. .. operating in many fields However, I focus my analysis on one of its subsidiaries – Viglacera Packings and Brake Linings Joint Stock Company This company operates in raw material processing industry