1- Apparently for the data and information provided vide questionnaire we observed that the Chairman of Katko Electronics

Company Mr. Sultan Khan has not taken a rationale decision regarding purchase of / direct investment in PINDI Electronic Industries Ltd. From the business portfolio tracking of both concerns, it was revealed that, KATCO Electronics was directly engaged in business of TV manufacturing while PINDI Electronics was indirectly engaged in said business. Hence, business field collision was observed. PINDI Electronics was running basic business of glass sheet manufacturing since 1975 and started supplement business of TV manufacturing since 1986. Hence purchase of whole unit on the basis of fresh started TV manufacturing business seems irrational. Steel sheet manufacturing business was not working at cent percent production capacity and TV manufacturing unit was newly commenced without having any financial track record. Hence, the financial strength of PINDI Electronic Industries Ltd cannot be assessable accurately, rather the business might be profitable rather viable. without having any business background. 2- Principal of Japanese Electrics Co. decided to sell service right to another company due to following reasons, Target market selection of KATCO Electronics was not appropriate w.r.t to risk factors associated with Karachi. Further, KATCO Electronics could not diversified and modify he manufacturing strategies considering the market potential. Due to above factors, the companys sale turn over tend to reduce and finished goods piled up in godowns. These tend to decrease the purchase of raw material from Japanese electronics and payable were increased. All this increase the cash cycle period and business plunged into liquidity crunch. Obtained financials / non financial limits from financial organization covering the time base back up facilities against the financial stuck-up and increase in cash cycle period. Reinstallation of furnace unit for maximum utilization of production capacity and smooth runs through. Never run furnace business below breakeven point. Segregate business financials like Equity, capital, assets etc between Furnace unit and TV manufacturing unit. 3- Sultan Khan should adopt following measure to recoup the business problem,

Adopt TV sets manufacturing strategies considering the market potential. Adopt multimodal brand manufacturing through seeking service agreement from other renowned companies.