Cash and Credit Invoicing, Receivables and Working Capital in an Automobile Dealership: Evidence from MAI Hyundai

Author

Abhishek Milind Haval


Abstract

 Finance and accounting operations in automobile dealerships are shaped by high-value transactions, large inventories and a constant mix of cash and credit sales. This paper reports a descriptive and exploratory study of the finance and accounting function at MAI Hyundai (Mohan Auto Industries Pvt. Ltd., Kolhapur), conducted through an 11-week on-the-job training from 15 May to 31 July 2026. The study examines how cash invoicing, credit invoicing and balance sheet concepts connect to liquidity, trade receivables and working capital. Using first-hand observation and a weekly analytical dataset covering 272 vehicle transactions (₹25.90 crore) and 1,161 service orders (₹1.876 crore), the paper finds that (i) vehicle sales rose 72.2% and service orders 54.9% between the first and last observed week; (ii) closing receivables fell from ₹48 lakh to ₹29 lakh (a 39.6% reduction) while collections kept pace with billing in every month after May; (iii) three models (Creta, Venue, Exter) account for 58.5% of vehicle transactions; (iv) general service and periodic maintenance make up 61.2% of workshop activity; and (v) weighted first-pass record accuracy was 97.25%, with credit cases the weakest category (95.35%). The paper concludes that receivables discipline, invoice accuracy and daily reconciliation are the main levers of working-capital health in a dealership, and proposes a dashboard-based, ageing-driven monitoring framework.


Keywords

automobile dealership; cash invoicing; credit invoicing; trade receivables; working capital; balance sheet analysis; internal control; India



Full Text:

Download Paper PDF


References


Brockington, R. B. (1993). [Full title and source to be added from original reference].

Garg, M. C., & Meentu. (2022). Impact of working capital management on firm's profitability of automobile sector firms in India. Asia-Pacific Journal of Management Research and Innovation, 18(3–4), 107–119.

Gitman, L. J., & Zutter, C. J. (2015). Principles of managerial finance (14th ed.). Pearson.

Hyundai Motor India Limited. (2026). Annual Report 2025–26; Q4 & FY26 Financial Results.

Kakuru, J. (2000). [Full title and source to be added from original reference].

Khan, M. Y., & Jain, P. K. (2011). [Full title and source to be added from original reference].

Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.

Singh, [initials], & Mishra, [initials]. (2021). [Full title and source to be added; first author's name is missing in the draft].

Society of Indian Automobile Manufacturers. (2026). Auto industry performance of Q4 (January–March 2026) & FY 2025–26.

Weygandt, J. J., Kieso, D. E., & Kell, W. G. (2005). [Full title and source to be added from original reference].

 

 

Share your valuable work from Social Media Buttons