CHAPTER ONE

INTRODUCTION 1.0 Introduction This chapter highlights the statement of the problem, background of the study, scope of the study, purpose, objectives and the significance of the study. 1.1 Background of the study Dayton trading is a private limited company incorporated in Uganda in 2010 with a share capital of 3 bilious ug.shs registered and paid up. The company is under the directorship of Asim Morvi A.K Kalan and Shamila Morvi Asim owns 60% Karan 30% and Shamila also owns 10% of the shares. Dayton trading limited is currently located on Ben Kiwanuka street Kampala district, Kampala city centre. It offers various services which include the following; Money lending, money transfer services among others. According to Hasnain Farishstah, financial controller Dayton trading limited). Dayton Trading limited was established with the aim of producing quality services to satisfy its Business objectives and to obtain additional income. According to financial controller of Dayton trading Farishstah, the company faced the challenges of competition from other competitors but this has empowered the organization/business to increase on the quality of the services due to demand from the customers. However; according financial manager Dayton trading (Farishstah) budgeting refers to the process of organizing in order to pay for purchase or labor charges and other costs related to the daily running of the company. In case of Samona beauty products their sources of funding include Creditors, Dayton trading always get credit facilities from their suppliers and they issue to them deposits updated cheques to 90 days to 60 days to mature. This process saves the company from paying high interest rates of 32%, however it's a company's policy to pay all the due debts, this process saves the company reputation