ACKNOWLEDGEMENTS

In the name of Allah, the most merciful and beneficent All praise to Almighty Allah, the most Gracious and compassionate. Who created the universe and bestowed mankind with the knowledge and blessings of Allah be upon the Holy Prophet Muhammad (S.A.W.) who guided mankind with the Holy Quran and Sunnah, the everlasting source of guidance and knowledge for humanity. I deem it an utmost pleasure to be able to express to heartiest gratitude and deep sense of devotion to my reverend and worthy supervisor Mr. Razwan for his skillful guidance, unfailing patience, inspiring attitude and invaluable suggestions to improve the script of this report.

DEDICATION

The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in every sphere of life. My affectionate parents who taught me the first word of speak and supported me morally and financially throughout my studies.

Cash management
1. Financial management technique used by corporate treasurers to accelerate the collection of receivables, control payments to trade creditors, and efficiently manage cash. Large corporations collect funds from many different accounts into a singleConcentration Account and invest excess funds in the Money Market. The local accounts are frequently drawn down to zero-funds every day. In disbursing payments to trade creditors, treasurers attempt to control the outflow of funds by timing payments with the receipt of invoices from trade creditors. A frequently used tool in cash management is Controlled Disbursement of corporate payments to match the collection of accounts receivables against disbursements to trading partners. See also Balance Reporting; Delayed Disbursement; Electronic Data Exchange; Lock Box; Treasury Workstation; Zero-Balance Account. 2. personal financial management account at a bank or brokerage firm, combining a money market fund and a brokerage or investment account with check writing and debit card access. Cash management is a broad term that covers a number of functions that help individuals and businesses process receipts and payments in an organized and efficient manner. Administering cash assets today often makes use of a number of automated support services offered by banks and other financial institutions. The range of cash management services range from simple checkbook balancing to investing cash in bonds and other types of securities to automated software that allows easy cash collection. When it comes to cash collections, there are a few popular options today that can make the process of receiving payments from customers much easier. Automated clearing houses make it possible to transact a business to business cash transfer that deducts the payment from the customer account and deposits the funds in the vendor account. Generally, this service is available for a fee at local banks.

CASH COLLECTION AND DISBURSEMENT

Cash collection systems aim to reduce the time it takes to collect the cash that is owed to a firm. Some of the sources of time delays are mail float, processing float, and bank float. Obviously, an envelope mailed by a customer containing payment to a supplier firm does not arrive at its destination instantly. Likewise, the payment is not processed

and deposited into a bank account the moment it is received by the supplier firm. And finally, when the payment is deposited in the bank account oftentimes the bank does not give immediate availability of the funds. These three "floats" are time delays that add up quickly, and they can force struggling or new firms to find other sources of cash to pay their bills. Cash management attempts, among other things, to decrease the length and impact of these "float" periods. A collection receipt point closer to the customerperhaps with an outside third-party vendor to receive, process, and deposit the payment (check)is one way to speed up the collection. The effectiveness of this method depends on the location of the customer; the size and schedule of its payments; the firm's method of collecting payments; the costs of processing payments; the time delays involved for mail, processing, and banking; and the prevailing interest rate that can be earned on excess funds. The most important element in ensuring good cash flow from customers, however, is establishing strong billing and collection practices. Once the money has been collected, most firms then proceed to concentrate the cash into one center. The rationale for such a move is to have complete control of the cash and to provide greater investment opportunities with larger sums of money available as surplus. There are numerous mechanisms that can be employed to concentrate the cash, such as wire transfers, automated clearinghouse (ACH) transfers, and checks. The tradeoff is between cost and time. Another aspect of cash management is knowing a company's optimal cash balance. There are a number of methods that try to determine this magical cash balance, which is the precise amount needed to minimize costs yet provide adequate liquidity to ensure bills are paid on time (hopefully with something left over for emergency purposes). One of the first steps in managing the cash balance is measuring liquidity, or the amount of money on hand to meet current obligations. There are numerous ways to measure this, including: the Cash to Total Assets ratio, the Current ratio (current assets divided by current liabilities), the Quick ratio (current assets less inventory, divided by current liabilities), and the Net Liquid Balance (cash plus marketable securities less short-term notes payable, divided by total assets). The higher the number generated by the liquidity measure, the greater the liquidityand vice versa. However, there is a tradeoff between liquidity and profitability which discourages firms from having excessive liquidity.

CASH MANAGEMENT IN TROUBLED TIMES

During downturns in the economy, declines in sales and poor cash management can spell the death knell to a small or startup business. In tough times, such as the recession of 2008-09, banks may tighten up the revolving credit or short-term loans that

businesses often rely on to sort out cash management troubles. Some business owners resort to trying to keep their companies afloat by raiding their personal finances -mortgaging their homes, maxing out credit cards, and/or cashing in their 401(k)s. At times like these, business managers or owners need to sit down and undertake cash management analysis so that they can address shortfalls, increase revenues, and cut spending -- before it's too late. They need to meet with department heads and employees and take control and adopt a better cash management plan. The plan may call for some harsh measures, but if employees are involved they will understand that these are needed for the business's survival. You can also bring the plan to bankers with the hope that through a face-to-face meeting and evidence that you are getting the cash management situation under control they will extend your business much-needed credit. Even during economic boom times, many small businesses experience cash flow difficulties, especially during their first years of operation. But entrepreneurs and managers can take steps to minimize the impact of such problems and help maintain the continued viability of the business. Suggested steps to address temporary cash flow problems include:

Create a realistic cash flow budget that charts finances for both the short term (30-60 days) and longer term (1-2 years). Redouble efforts to collect outstanding payments owed to the company. "Bill promptly and accurately," counseled the Journal of Accountancy. "The faster you mail an invoice, the faster you will be paid. If deliveries do not automatically trigger an invoice, establish a set billing schedule, preferably weekly." Businesses should also include a payment due date. Offer small discounts for prompt payment. Consider compromising on some billing disputes with clients. Small business owners are understandably reluctant to consider this step, but in certain cases, obtaining some casheven if your company is not at fault in the disputefor products sold/services rendered may be required to pay basic expenses. Closely monitor and prioritize all cash disbursements. Contact creditors (vendors, lenders, landlords) and attempt to negotiate mutually satisfactory arrangements that will enable the business to weather its cash shortage (provided it is a temporary one). In some cases, you may be able to arrange better payment terms from suppliers or banks. "Better credit terms translate into borrowing money interest-free," states the Journal of Accountancy. Liquidate superfluous inventory.

Assess other areas where operational expenses may be cut without permanently disabling the business, such as payroll or non-strategic goods and/or services with small profit margins.

Cash Management Techniques:

No matter what type of business you own, it is critical to manage your cash flow properly. Without proper cash flow management techniques you could find yourself running short of cash just when you need it the most. That could leave you unable to pay suppliers, develop the marketing plan you need or even pay your employees. Fortunately there are a number of techniques companies can use to maximize cash flow and keep the business running smoothly.

Accounts Receivable
Many companies are too passive when it comes to collecting on overdue invoices. The money customers owe you plays a big role in your monthly cash flow, so it is important to develop a solid technique for tracking who owes your firm money, how much they owe and when the payment was due. Make sure your accounts receivable staff is taking a proactive approach to collecting on those unpaid bills, and ask for a weekly report showing the total amount outstanding, along with an explanation of why those payments have not been received. Building an accounts receivable database is one of the best ways to keep track of what you are owed. Once the tables have been created and the database has been designed, all your accounts receivable clerks need to do is press a button to open a query showing the details of each outstanding invoice.

Track Expenses
Whether you are running a business or a household, it is important to get a handle on expenses. Many business owners are so busy with day-to-day operations that they lose sight of the big picture. Getting a handle on the expenses associated with running your business is one of the best ways to manage--and maximize--your cash. Start by building a detailed report of every expense for the past month. Break each expense down into its appropriate category, i.e. rent, utilities, office supplies, etc., then analyze each category and look for ways to cut back. For instance, companies can save money on office supplies by contracting with a specific vendor and negotiating lower prices, rather than running to the office supply store down the street.

Credit Lines
Establishing a credit line with your lender is one way to manage cash flow and avoid shortfalls. Many companies set up a line of credit to cover those times when sales fall short or expenses run high. Companies can also use short term loans to provide the extra liquidity and cash management they need during the down months.

Benefits of Cash Management Techniques

Cash management techniques represent an important part of a company's financial strategy. A company must ensure that it has enough cash on hand to conduct financial activities, such as to pay its own bills. A company must also manage receipts of cash to prevent fraud.

Synchronization
A company needs cash to cover its own expenses. It can take in cash through different locations. Customers might also make payments to the company in different formats, such as through postal mail or online payments. The company ensures it will have enough cash to cover its outgoing payments by synchronizing its cash flows. For example, a company might use regular billing cycles throughout the month, ensuring that customer revenues roll in throughout the month on a steady basis. Synchronization is a benefit of doing business using different cash management techniques.

Credit
A large company ensures that it will have ample cash flow to cover expenses by obtaining credit. When the company must pay creditors without enough cash available, it uses its line of credit to cover the shortage. Business credit is a benefit because it enables a company to cover shortages, but it's also a cost because a company must pay interest on the money borrowed through a line of credit.

Lockboxes

A large company can also manage cash receipts received in multiple locations around the country by creating regional post office lockboxes. At each location, a bank will post payments mailed to the regional P.O. box at several times during each business day. Through the lockbox system, a company benefits by reducing the time it takes for customer checks to clear the bank. Cost is associated with each banking center's processing of customer payments.

Transaction Motive
A large company must also use various cash management techniques to ensure it has enough cash supply for different business expenditures. It has a transaction motive to ensure it can pay expenses such as employee wages, service fees on business accounts and routine purchases and expenses in the right format. In reality, cash does not go out at the same rate as it comes into the company. The transaction motive encourages business officials to seek different ways to make these payments.

Cash management services generally offered

he following is a list of services generally offered by banks and utilised by larger businesses and corporations: Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay. Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to consumers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site. Armored Car Services (Cash Collection Services): Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its employees to deposit the cash. Automated Clearing House: services are usually offered by the cash management division of a bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees (this is how direct deposit works). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups, because under this system banks assume that the company initiating the debit is correct until proven otherwise. Balance Reporting Services: Corporate clients who actively manage their cash balances usually subscribe to secure web-based reporting of their account and

transaction information at their lead bank. These sophisticated compilations of banking activity may include balances in foreign currencies, as well as those at other banks. They include information on cash positions as well as 'float' (e.g., checks in the process of collection). Finally, they offer transaction-specific details on all forms of payment activity, including deposits, checks, wire transfers in and out, ACH (automated clearinghouse debits and credits), investments, etc. Cash Concentration Services: Large or national chain retailers often are in areas where their primary bank does not have branches. Therefore, they open bank accounts at various local banks in the area. To prevent funds in these accounts from being idle and not earning sufficient interest, many of these companies have an agreement set with their primary bank, whereby their primary bank uses the Automated Clearing House to electronically "pull" the money from these banks into a single interest-bearing bank account. Lockbox - Retail: services: Often companies (such as utilities) which receive a large number of payments via checks in the mail have the bank set up a post office box for them, open their mail, and deposit any checks found. This is referred to as a "lockbox" service. Lockbox - Wholesale: services: are for companies with small numbers of payments, sometimes with detailed requirements for processing. This might be a company like a dentist's office or small manufacturing company. Positive Pay: Positive pay is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay checks listed in that register, with exactly the same specifications as listed in the register (amount, payee, serial number, etc.). This system dramatically reduces check fraud. Reverse Positive Pay: Reverse positive pay is similar to positive pay, but the process is reversed, with the company, not the bank, maintaining the list of checks issued. When checks are presented for payment and clear through the Federal Reserve System, the Federal Reserve prepares a file of the checks' account numbers, serial numbers, and dollar amounts and sends the file to the bank. In reverse positive pay, the bank sends that file to the company, where the company compares the information to its internal records. The company lets the bank know which checks match its internal information, and the bank pays those items. The bank then researches the checks that do not match, corrects any misreads or encoding errors, and determines if any items are fraudulent. The bank pays only "true" exceptions, that is, those that can be reconciled with the company's files. Sweep accounts: are typically offered by the cash management division of a bank. Under this system, excess funds from a company's bank accounts are automatically moved into a money market mutual fund overnight, and then moved back the next morning. This allows them to earn interest overnight. This is the primary use of money market mutual funds. Zero Balance Accounting: can be thought of as somewhat of a hack. Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. Traditionally, it would be impossible to know which deposits were from which stores without seeking to

view images of those deposits. To help correct this problem, banks developed a system where each store is given their own bank account, but all the money deposited into the individual store accounts are automatically moved or swept into the company's main bank account. This allows the company to look at individual statements for each store. U.S. banks are almost all converting their systems so that companies can tell which store made a particular deposit, even if these deposits are all deposited into a single account. Therefore, zero balance accounting is being used less frequently. Wire Transfer: A wire transfer is an electronic transfer of funds. Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash office. Bank wire transfers are often the most expedient method for transferring funds between bank accounts. A bank wire transfer is a message to the receiving bank requesting them to effect payment in accordance with the instructions given. The message also includes settlement instructions. The actual wire transfer itself is virtually instantaneous, requiring no longer for transmission than a telephone call. Controlled Disbursement: This is another product offered by banks under Cash Management Services. The bank provides a daily report, typically early in the day, that provides the amount of disbursements that will be charged to the customer's account. This early knowledge of daily funds requirement allows the customer to invest any surplus in intraday investment opportunities, typically money market investments. This is different from delayed disbursements, where payments are issued through a remote branch of a bank and customer is able to delay the payment due to increased float time.

INTRODUCTION

Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry. Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such as Sapna and Mughal-e-Azam are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe. Sitara Group by now is in textile cloth finishing and processing, textile spinning, color alkali industries and power plant. Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed the present Chairman of the Group, the two creative and courageous men, latter joined by second generation, making a blend of experience and modern business knowledge, managed the business growth and development with assistance of highly qualified team of professionals. Faith in Almighty Allah and in their own abilities & commitment to the cause, untiring efforts and leadership qualities of the family, established the group, which now stands amongst Leading Industrial Groups of the Country, under the Chairmanship of Haji Bashir Ahmed.

UNITS
Sitara Chemical Industries Ltd Sitara Chemical Industries (Textile Div-II) Sitara Chemical Industries (Textile Div-I) Sitara Textile Industries Ltd Sitara Energy Ltd Yasir Spinning Mills Ltd

BRIEF HISTORY OF ORGANIZATION

Sitara Textile Industries Pvt. Limited Faisalabad has the privilege to be the first member of the esteemed Sitara Group. Founded in 1972 by the most illustrious brothers, Haji

Abdul Ghafoor (late) and Haji Bashir Ahmad, is now led by the young Anees Ahmad, a dynamic second generation leader of Pakistan textile industry. Sitara Textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan. It is exporting high quality products. Its products of brand name such as Sapna and Mughal-e-Azam are amongst leader in the market. Sitara Textile has designing, stitching, and printing departments. The bedding and fabric collection of Sitara Textile are exported to South America, USA, Canada, New Zealand and Europe. Sitara textile is one of the largest manufacturers and government accredited exporters of textile in Pakistan. Specializing in home textiles, printed, dyed, bleached fabrics, an apparel and fashion garment, Sitara is exporting quality to virtually all parts of the world. With latest State-of-the-art machinery and equipment, it is a complete printing, dyeing, finishing and stitching plant. Three huge spinning mills, a high caliber weaving unit and a made-up / garment unit is working under one roof. The unit is capable of producing high quality with a capacity of 150 kilometers of finished cloth every day. Sitara textiles industries private limited has proudly maintaining its leadership in 100 percent pure cotton products along with the man made fiber. The product range in pure cotton is available as sateen both in mono cotton and poly cotton, bed sheets, pillow, quilt covers, aprons, boxer shorts, and Bermuda shorts are available in most exotic and fascinating designs. Counts arent all that counts! While counts reflect on the durability of the cloth, what reflect on the aesthetics of the end-user are the design, color combination and mood of the fabric print. That is why; Sitara never under estimates the importance of an enchanting design. Their design department is not only well equipped with latest computers and peripherals but also manned with a highly sensitive and sensible team of designers. These designs are based on unique but fascinating combination of age-old traditional motifs and futuristic surreal forms given their customers a wide range to choose from. Widening this choice further is their design library, one of the largest in Pakistan, offering an extensive range from timeless floral and geometric to intriguing contemporary designs and colors? A sizeable percentage of Sitara textiles, daily textile production by the meter are converted in-house into a ready, saleable retail product. There Cut & Sew division enjoys the cutting edge in assembling and sewing of bed sheets and sets, quilt covers, bolster, valances, curtains, table linen, bed spreads, comforter covers, pillow cases, kitchen linen and ready made garments as per the specs defined by the customers. From a fiber to a finished product, nothing gets spared from our ultra-sensitive, extra vigilant laboratory. Equipped with the most modern and precision equipment, products

are frequently subjected to tests against most relevant international standards at every stage of manufacture. Tests are conducted to control shrinkage (dimensional change), pilling resistance, and abrasion, color fastness and washing fastness etc. Much of their wide success and popularity is attributed to there technically being ahead in there printing. There printing staff and design teams combine years of practical experience in printing with top-of-the-range Austrian J. Zimmer rotary printing machines producing 280 cm finished width up to 12 colors per design and maximum repeat of 91 cm. Flat bed printing facility comprised Reggiane machine with 320 cm working width and 320 cm repeat. Thanks to their modern and sophisticated facility, processing to finishes like chintz, silicon, scotchgard, fire retardant down proof and raisin etc, is invariably a pleasure. With Sitara, there world wide clientele gets quick quality sampling on Austrian J. Zimmers latest rotary strike off machine facilitating production of strike offs up to 15 meter length.

NATURE OF BUSINESS
Sitara Textile is one of the leading organization which provide the a variety of Textile products consist of following items such as Bed sheets, Pillows, Quilt covers, Aprons Kitchen aprons, Boxer shorts, Bermuda shorts, Nighties, Bolster, Valances, Curtains, Table linen, Bed spread, Comforter covers, Ready made garments. Sitara Textile is multinational export in nature. It is specialized to produce the above said items and distribute locally and internationally through their own distribution channels and Agents.Sitaras export spread over the 3 main continentals such as America, Europe and Asia.

BUSINESS VOLUME
Sitara Textile deals with local and international Market. It contributes major share in Pakistan Economy and provide its products locally on economic rates. Sitara Textile s business volume consist of US$25 million annually and local business consist of 10 to 15 crore. Sitars management is very efficient so they always looking new opportunities for development of their business and increases the economic activities in the country.

PROFILE OF EMPLOYEES
Sitara Textile Industries consist of 1453 employees in Office, Production and Stitching department. List are given below

OFFICE AND PRODUCTION STAFF

Office and Production section consist of 636 employees .In which 452 employees are Technical, 62 are Non Technical, and 122 is remaining staff which provide different services.

STITCHING UNIT
Sitars stitching Unit consist of 817 employees in which 403 are Technical, 356 are Non Technical and 58 employees are provide different services

PRODUCT LINES
Sitara Textile has a variety of products. Following are main products, which are mentioned below

Main products:
Bed sheets Pillows Quilt covers Aprons Kitchen aprons Boxer shorts Bermuda shorts Nighties Bolster Valances Curtains Table linen Bed spread Comforter covers Ready made garments

MARKETING STRATEGY
The export department is handling the international market in a very proper and appropriate manner. The export department consists of competent and skilled team of professionals. Taking in to consideration that the 90 % of total production of Sitara textile is exported through out the world, the export department tries its best to generate valuable customers through out the world. Following is the procedure of export department,

PRICING STRATEGY
When the DEM confirms that the required design is easily prepared in STIL, then he replies to the buyer that we are in a position to make your order. Then the EM takes Grey fabric price from the Grey fabric procurement department. The EM calculates the prices then the DEM checks and signs the costing. Most of the customers send there own designs in the form of Artwork and fabric samples in case of printing of the design of the customers. On the instructions of DEM the EM asks the sampling department and also coordinates for the sampling requirement and its dispatch if the customer for quality purpose requires it. If the price quotation is workable for the customer then he places order on terms and conditions. Sometimes if prices are not workable for the customer he offers his target price. Then the DEM and EM recalculate this price and if it is workable for STIL then DEM proceed to ask the customer for order placing other wise do not proceed. There are three pricing strategies are being used in STIL, Competitive base price Customer base price Product base price

CASH MANAGEMENT
Cash management involves forecasting, receiving, controlling, disbursing, and investing funds from your company's operations. Besides helping to improve liquidity and increase profits, effective cash management will: INCREASE CASH INFLOW. REDUCE CASH OUTFLOW. INCREASE THE YIELD ON IDLE FUNDS.

Working with a certified public accountant (CPA) to establish an effective cash management system will enable Sitara Textile to stretch their business

EVALUATE Sitara Textile CURRENT SITUATION

CPAs can assist sitara textile in evaluating and improving their current cash management practices or in formulating new practices. The first step may involve a study of their financial statements and budgets, using various ratios such as the following:

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Accounts receivable turnover Average collection period Outstanding accounts receivable as a percentage of total revenue Inventory to current assets Inventory turnover Current assets to current liabilities Current liabilities to tangible net worth Total debt to equity Net profit on sales

Once these ratios are developed and compared to industry norms, they can review their policies and procedures to determine the effectiveness of cash management.

FORECASTING CASH FLOW

Cash flow forecasts provide important data for estimating cash requirements, or investing idle funds not needed for day-to-day transactions. CPAs can help you develop cash flow forecasts using the following information: Cash on hand. This should be easily determined from your accounting records. Expected cash receipts. These can be determined by estimating sales of goods or services, assets, and capital stock or securities. Expected cash disbursements. These can be determined by estimating the timing and amounts to be spent on operating costs, including: Payroll and employee benefits Material and supply purchases Taxes, dividends and interest Debt payments Capital acquisitions

ENHANCING CASH FLOW

Increasing the flow of money that sitara textile takes in requires a careful analysis of their billing and collection procedures. Here are some points to consider:

Billing schedule. Should they mail their customers' monthly statements, bill them at the time of the transaction, or both? Under what situations are advance payments and progress billings desirable? CPAs can help them find the right answers to these questions. Early payment discounts. Should they offer their customers discounts for early payments? CPAs can analyze discount policies to determine if they are effective in speeding up collections. Credit and collection procedures. Who should be given credit and how can collections be improved? CPAs can recommend credit-granting policies. They can also evaluate the cost-effectiveness of allowing customers to make payments using major credit cards, or of selling the accounts receivable to a third party. Deposit of cash receipts. Should they deposit daily cash receipts through a lockbox system, wire transfer or some other method? CPAs can prepare a cost analysis to determine the costeffectiveness of each method.

CONTROLLING CASH DISBURSEMENTS

As Controlling cash disbursements to improve the availability of cash is a major objective of cash management the same abjective is in sitara textile . Minimizing the effects of cash outflow requires timing payments to maximize your use of funds, while maintaining good vendor relations. This may result in reduced borrowing costs. In addition, reducing operating costs in certain areas can help minimize your expenditures. CPAs helps sitsra textile determine when to make payments and if they should take advantage of early payment discounts. What's more, they can study inventory and purchasing policies to see if their company has maintained proper inventory levels, adopted the most cost-effective purchasing procedures, and determined the vendor with the most favorable terms.

INVESTING CASH
Investing sitara texile idle funds in appropriate vehicles earning interest or dividends may increase their company's earnings or minimize tax liabilities. CPAs helps them plan their investments and advise them of the tax consequences.

SWOT ANALYSIS
STRENGTHS
Adequate financial resources Specialized in printing Have a diversified group of industries Good market image Competent management and workers Have a ability to compete with competitors In home facility of production Loyal customer Loss sustaining capacity

WEAKNESSES Less chances of promotion Centralized decision making Salary package is not attractive Less motivation Not enjoy the economy of scale

OPPORTUNITIES New market coverage New quality introduction Extension of stitching department Latest machinery installation Market trend analysis

THREATS GST is a biggest threats Prices increases due to currency devaluation New entrance of quality conscious competitors Low price offered by the competitors Strong promotional activities to convince buyers by competitors

CONCLUSION & RECOMMENDATIONS

Sitara group of industries is one of the renowned industrial groups of the country. This group started its industrial activity with textile weaving sector in 1956, under leadership of two brothers. Sitara group by now is in textile cloth finishing and processing, textile spinning, chlor alkali industries and power plant. Sitara textile is one of the largest manufacturer and registered leading exporter of textile goods in Pakistan, exporting quality products through out the world. Sitara has its own designing both manual and computerized, developing and screen-making department. Sitara has large number of designs and qualities of fabrics that comply with any requirements and cover all the styles, in the most extensible range of colors and printed on such varied fabrics as polycotton 50: 50 plain weave, 100 % cotton fabric plain weave, percale, sateen in bleached, dyed and printed form. Apart from fabrics Sitara has its own stitching department having 120 machines for producing value added products i.e. bed sheet sets, quilt covers, comforter shells, pillow covers, curtains, table cloth and also ready made garments.