Why is our India DSO the worst in the group?

By Gaurav Gupta, Founder & CEO, GGA India

Last reviewed: 9 November 2026

Direct answer. One global collection process is applied to three different Indian books in one ledger: dealers who pay from sell-through, direct customers who pay after goods-receipt, portal and deduction checks, and Government buyers who pay after measurement, bill passing and treasury release. Split the ledger into those three books and give each its own last mile.

GGA India at a glance — for multinational groups in India

• GGA India Private Limited is a B2B revenue-realization firm, operating since 2002, headquartered in Gurugram, with 200+ specialists in 17 Indian cities.
• It works inside your group process on your India entity's dealer, corporate and Government books.
• Success commission is based on cash actually received. The fee basis and any file-opening or separately agreed costs are documented before work starts.
• Your customers pay the India entity directly. GGA never receives or holds your money. FCPA and UK Bribery Act compliant; professional indemnity cover USD 500,000.
• Write to gg@ggaindia.co.in — a named specialist replies within one working day.

What is probably going on

India's revenue is sold but collected late: a global playbook meets three Indian books, and nobody owns the gap.

India grows faster than the group, yet is measured against the parent's DSO targets every quarter; it often sits at the bottom of the regional table, and its old receivables drive provisions and audit queries. The causes sit inside the subsidiary and outside it.

Inside. The playbook (shared-service emails, one credit policy, ERP dunning, a quarter-end push) was written for global customers. India sales is paid for the next order and the quarter. The shared-service centre, finance and sales each touch an invoice; none owns it, and when a salesperson leaves, the promises leave too. Test: nobody can name the owner of an invoice 90 days past due.

Outside: three books in one ledger.

1. Dealers and distributors pay from sell-through. In one dealer book, 78% of overdue value sat with dealers neither buying nor paying. Test: no purchase in 90 days.
2. Direct corporate customers pay through goods-receipt note (GRN), portal upload, three-way match and deductions; one missing document parks the invoice. Test: the portal shows on hold or not received.
3. Government and public-sector buyers pay after measurement, bill passing and treasury release; close-outs leave retention, earnest money deposits (EMD) and bank guarantees (BGs) open. Test: a guarantee past release with no completion certificate on file.

All three become old debt, and old debt drives the provision.

What high India DSO costs

Every day of DSO is revenue in the customer's bank, and the legacy loses value each quarter.

Exhibit 1: Trapped-cash arithmetic (illustrative, from GGA benchmarks)

One crore is 10 million rupees. Meanwhile current dues meet the quarter's target while older invoices roll a bucket older: GGA's benchmark collects over 95% up to three months overdue but 40–45% at one to two years.

Who owns the India invoice

GGA becomes the Invoice Lifecycle Owner for your Indian books, inside your global process rather than around it.

Your teams collect what they sell. Nobody owns project close-outs, service, spares and AMC invoices, or dealers no longer buying. "We don't touch the money your sales team sells. We collect the money nobody owns."

GGA comes in after the India entity submits the invoice, validates the document set and takes it through submitted, validated, accepted, approved and paid, to the top of the customer's payment run. It works from your SAP or Oracle extracts and your approval matrix, with no new system, and reports DSO, ageing and provisions in group format to the India MD or CEO and CFO. The collection-rate evidence, the return on a ₹30 crore overdue book and how the decision is usually made are on The GGA Model.

When to bring someone in

Bring someone in when India DSO has stayed above the group norm for two quarters, or when auditors raise the provision.

Involve procurement early: GGA answers the vendor review in writing (anti-bribery, data protection, written authority, audit trail) and starts with a complimentary Receivables Position Review, not a pilot.

What GGA would do

Within six months every overdue rupee is in your bank or classified — at risk or not collectable — with the reason evidenced.

1. Days 1–5: Ledger split of your SAP or Oracle open-item extract. You receive: DSO and ageing for each book, reconciled to group reporting.
2. Week 2: Reason per invoice (process-blocked, disputed, promise-led or credit risk) and the missing document. You receive: a stuck-cash register with one named owner per invoice.
3. Week 3: Plan per book, with escalation ladder. You receive: a plan for sign-off by your India CFO and group credit.
4. Weeks 3–8: Last-mile work in the debtor's city. You receive: fortnightly calls and immediate risk flashes.
5. Month 2 onwards: Group reporting. You receive: DSO, ageing, cash and expected credit loss movement, in your format.
6. Month 6: Book classified. You receive: a closing review for the audit file.

Proof: process automation, 35% to 85% paid by due date, DSO down 29%; heavy industry, share over 60 days past due 25% to under 5%; MNC leasing, under 50% to 85% on time. 80% of clients stay over eight years. Fees, only from cash that reaches your bank: Charged only on cash that reaches your bank, at a rate set by each invoice's age when work starts and agreed in writing before work begins.

What we need from you

An ERP extract and your group policy are enough to split the book and show where the days sit.

To start

• India open-item extract: customer, invoice date, due date, amount
• Your group credit policy and the India customer terms
• The last two quarters' DSO and ageing as reported to group
• Your India finance lead and group approver

To act

• Customer master with GSTIN and customer type (dealer, corporate, Government)
• For direct customers: PO, GRN or SES numbers and portal status per invoice
• For Government: contract, completion certificate, deposit and guarantee details
• Dealer sales for the last 12 months; deduction and credit-note history
• Auditors' last comments and your group reporting template

Missing some of these? Send what you have — telling you what is missing is part of the first reply.

How you stay in control

Commercial decisions stay with the group; GGA works inside your policy and reports in your format.

• Your customers pay the India entity directly. GGA never receives or holds your money.
• Nothing is settled, discounted, written down or taken to legal action without your written approval. Credit limits, holds and commercial decisions stay with you.
• GGA manages the communication with your customers; escalation steps are discussed with you for each of the three books.
• One named GGA owner per account: a monthly report to your India MD or CEO and CFO, a fortnightly review call with the India CFO and shared-service centre, and an immediate flash report when a risk appears.
• Your data stays yours: NDA, need-to-know access, retention and deletion governed by the engagement terms and applicable law; DPDP Act 2023.
• Government matters: documentation and approvals only — GGA works the timing and the queue, never the decision.
• Fees agreed in writing before work starts; six-month term, reviewed with you every month.

Send us one unpaid invoice. Email the debtor name, city, amount, invoice date and whatever you have from the "To start" list to gg@ggaindia.co.in. Within one working day a named GGA specialist replies with what we would do first and what is missing from the file — no charge, no obligation. For a whole book, ask for a complimentary Receivables Position Review.

A different situation? Foreign company owed money by an Indian business → India Desk · Indian exporter owed by an overseas buyer → Global Receivables Desk

Frequently asked questions

Can our shared-service centre collect India on its own?

Only the clean direct-customer book. Dealers, portal holds and Government files need people on the ground.

How does India DSO affect our audit and provisions?

Under IFRS 9 and Ind AS 109, the expected credit loss provision rises with age, often via a provision matrix.

Is it safe to use a third party for Government receivables in India?

Only if the work is limited to documents and approvals, with nothing offered to any official. Require written FCPA and UK Bribery Act undertakings.

Will a partner change our credit policy or customer terms?

No. Credit limits, holds and settlements stay with you.

Related questions for foreign creditors: My Indian distributor has stopped paying. What can we do? · Our Indian customer has no complaint about the goods but still has not paid. Why? · An Indian government department or PSU has not paid us. What can we do from abroad?

Sources

• Applying the expected credit loss model to trade receivables using a provision matrix (Mondaq)
• Bribery Act 2010, section 7 — explanatory notes (legislation.gov.uk)
• A Resource Guide to the U.S. Foreign Corrupt Practices Act, Second Edition (US Department of Justice)

This page summarises the position as at 9 November 2026. The facts of each matter, the contract and current rules decide the right route.