A Study on Credit Risk Management in Britannia Industries Limited, Bangalore

Credit risk management has become an important role in all organizations. Managing credit risk is a key challenge for companies and financial institutions because poor risk management can lead to financial losses, reduced profitability, and weakened stability. This study analyzes the credit risk management at Britannia Industries Limited, Bangalore, by evaluating key financial variables including financial leverage, liquidity, quality of receivables, solvency, and overall long-term financial performance. The research employs secondary data gathered for a period of five years (2021–2025), utilizing analytical research design and purposive sampling. Ratio analysis, common size and comparative balance sheet analysis are applied. It is determined that credit risk management has a great influence on the performance and financial stability of the organization. The analysis reveals that while liquidity and receivables turnover improved in certain years, inconsistencies in debt management, interest coverage and collection performance indicate ongoing credit risk exposure. The conclusion is that enhancing credit assessment, improving collection efficiency, ensuring optimal capital structure, and strengthening liquidity management are essential for overall organizational performance.