Chapter one
Introduction
1.1 Background of the study
Nepal is developing country situated in Southern part of Asia in
the world. It is poor and land locked country is based on Agriculture
85% of people of Nepal is engaged in Agriculture. By this without
development of Agriculture there is no possibility of economic status of
country there should be development of villages. For this Cooperative
limited vital role.
Per capital income of each Nepali has only $ 220. Financial institutions
are playing vital role for the developing Nepal through the Investment
in various sectors. Under financial Institution there is depositary and
non depositary institutions. Under the Non depositary institution
members are the source of the fund.
In the country like Nepal cooperatives are playing very significant role
for the development of the villages and cities. In simple word
Cooperative means a group of people formed together for the
fulfillment of specific purpose. A group of people who are of poor
economic status formed together lifting their economic and social status
is known as Cooperative. Member of Cooperative helps each other on
the principal as self helps though mutual help. In saving and investing
cooperative limited applies theory of cooperatives and collect saving
from their member and does investments. By this they collect saving
from local people make capital and f\give loan those who are in needed.
As Appling above principal of cooperative limited deurali Cooperative
Organization Limited( DESS) established in Inaruwa, Balaha of
Sunsari district by making member of local people for uplifting
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economic and living standard. It was established in 20 poush 2056
under Cooperative regulations 2049 B.S.
According to the Co-operative principle saving and Investment
cooperative limited for fulfillment of their objectives.
It has certain duties;-
Regular saving , accepting , deposit from customer.
Regular supply of loan.
Development of social economic status of members.
To conduct other related duties.
It has been accepting deposit from member on regular saving and
optimal saving, similarly it flows its investment in various sectors to
upgrade the financial and social status of members. For instance
Education loan, computer loan etc.DESS is providing its facilities in
entire area of Inaruwa.It has been collecting deposit from the members
of the cooperative and providing them loan at the low rate. Although it
is established to enhance the saving of the members ane to provide
loan, it is utilizing the leisure period by providing important
knowledge and skills to the members.
Cooperative has its own structure that defines the responsibilities and
authorities of the each and every member of the organization. The
cooperatives are featured with right of autonomy and self control
provided by the cooperative act 2049. The Cooperative structure should
have to manage its organizational structure according to Cooperative
act 2049.
In the Cooperative general meeting is the supreme level.It has vital
responsibility of preparing the policies,program and budget.Board of
directors is the representative committee of the Co-operative. Board of
directors can appoint advisors and employees.
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1.2 Literature survey
This report attempts to analysis the investment and saving status
of Deurali Cooperative Organization Limited (DESS).Investment and
saving are very important tasks of Cooperative. In this survey
investment and saving are focused by studying investment and saving
areas. Saving is excess amount over the expenditure.
1.3 Propose of the study
The main objective of the field work report is the evaluated and
position of the Deurali Cooperative Organization Limited (DESS). The
main purpose of this study as follows.
To relationship between Investment and savings
To know the types of investment and savings.
To study about the investment areas.
To know the rate of interest on Investment and saving
To compare the theoretical knowledge and practical
1.4 Limitation of study
Investment and saving analysis measures the importance of the
Cooperative’s condition and status. In spite of the advantage it some
limitation with respect it. During the preparation lot of limitation as this
follows:
It attempts to study about the Investment and saving.
It consists the data of three year.
It takes 2063/64 as a base year.
It assumes that all collected data are accurate.
The whole study is based on secondary data instead of primary
data.
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1.5 Field work procedure
To achieve the mention objective of the fieldwork the study is
based on the both primary and secondary data and information. For
primary data frequently observation and information for the study taken
annual report published by Cooperative. Based on this report only
analysis and description of Investment and saving are made.
The following procedures conducted while preparing this report;-
Orientation classes were taken conducted by college.
Topic was selected with the help of lectures.
Data were collected from the primary and secondary sources.
Regular meetings were organized.
1.6 Method of data collection
Generally there are two types of data collection. Primary data
collection is the that method which the direct goes to field and collect
information by the observation, question with the participant person
and secondary data is the this types which all the information has been
already record as published. In both data is importance for the field
work report and they both are utilized in this report.
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Chapter 2
Presentation &Analysis of data
The presentation of data is important though it is presented with the
help of table,chart.figure.This section includes all the presentation of
the data and their analysis. To make the understanding more far easy
and simple various types of presetting are used. Analyis of each year’s
data has been made very systematically.
2.1 Presentation of Data
This section attempts to present the data through the table,graph,
bar diagram, pie chart etc to make it more easier to understand. A lot
efforts are made to make it more attractive and easy to understand.
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Table 1
B/S of Deurali Cooperative Organization Limited
Particulars 2063/64 2064/65 2065/66
Capitals & Liabilities
Share Capital 242100 311700 347600
Provision fund 21257.62 21257.62 21257.62
Regular deposit 1967650 1967650 2976143
Optional deposit 2275668.25 2814685.25 3091208.25
Provision for Bad debts 15000 15000 55000
Outstanding audit fees 2500 2500 3000
Miscellaneous liabilities -- -- 33620
Total 4524175.87 5611165.8 6527828.87
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Assets
Land -- 230000 230000
Assets 19550 23050 23050
Outstanding Loan 2677206 3489654 4952200
Investment 10000 10000 10000
Cash balance 209716.88 123443.88 205605.88
Bank balance 1533057.35 1619775.79 1086829.17
Closing stock 7080 -- --
Loss(net) 67565.64 115242.20 26143.82
Total 4524175.87 5611165.87 6527828.87
from 2063/64 to 2065/66
Source ;- Annual report of DESS
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In the above table Balance sheet of DESS from 2063/64 to 2065/66 is
presented.
Where capital and assets are presented accordingly. In this table
Investment and saving are analyzed. In 2063/64 investment was Rs.
2677206 in loan and Rs. 10000 in Share of another institution. In
2064/65 it was increased and reached up to Rs 3489654 and Rs 10000.
In 2065/66 it was increased up to Rs 4952200 and 10000.In each year
total amount of investment is increasing. It is good condition for the
Cooperative.
2.2 Analysis of data
Table 2
Investments and Saving of DESS
from 2063/64 to 2065/66
Investments Fiscal Saving
Amount Change Year Amount Change percent
percent
1759888 --- 2063/64 3827798 ---
2516661 43% 2064/65 577873 (84.90%)
4480760 154.65% 2065/66 4758054 24.30%
Source ;- Annual report of DESS
In the above picture Investment and saving are presented. In 2063/64
investment was 1759888 and saving was 3827798.In 2064/65
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investment increased by 43% and reached to Rs 2516661 and saving
decreased by 84.90% and reached to Rs 577873.In 2065/66 investment
was increased by 154.65% and saving increased by 24.30% and
reached up to Rs 4758054. In this investment is positively increasing
which is healthy condition for the cooperative whereas saving is
decreasing and it is good for the Cooperative.
It can be shown in the following Bar diagram.
Figure No. 2
Multiple Bar diagram to Show Investment and saving
of the DESS from 2063/64 to 2065/66
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In the Multiple bar diagram, Investment and saving of the three years
are presented. Where index has used to indicate saving and Investment.
In 2063/64,2064/65 and 2065/66 investment is 1759888,2516661 and
4480760 respectively. Here Investments are regularly increasing. As
the same way savings in 2063/64, 2064/65 and
2065/66 is 3827798, 577873, and 4758054 respectively.
Investments are mobilizing in each year nicely which shows the healthy
condition of the cooperative. Investments are very important for
accomplishment of goal of Cooperative. Investments processes are vary
from Cooperative to Cooperative because of their policy. Generally
investments are made after analyzing the character of debt, Capacity of
debts, objective of loan, size of loan, period and security etc.
Saving are also very important because it is the main source of fund for
Investment so saving need to be collected as much as can but
cooperative should clear about that there should be no idle amount
remainders has been providing optimum opportunity for the
shareholders to increase their deposits.
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Table 3
Interest Revenue and Interest Expenses from Investment activities of
DESS, From 2063/64 to 2065/66
Interest Revenue Interest Expenses
Amount Change Amount Change
Fiscal year
percent percent
283427.48 --- 2063/64 273206 ---
299043 55.0957% 2064/65 312972 14.555%
488576 72.38% 2065/66 319105 16.80%
Source ;- Annual report of DESS
In the above table Interest income and expenses are increasing in
following years. It is Rs. 283427.48, Rs. 299043 and Rs. 488576 in
2063/64, 2064/65 and 2065/66 respectively. Interest income is and
expense are increasing, here interest income increased by 55.0957%
and 72.38% which is good for the cooperative. Whereas interest
expenses are increased by 14.555% and 16.30% in 2064/65 and
2065/66 respectively.
It is shown in the following graph;-
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Figure No. 3
Above graph represents the trend of return. In the graph amount is
given from 2063/64 to2065/66.Cooperative income released from the
interest charged to the loan when it is provided to shareholders. Here
interest income increased by 55.0957% and 72.38% which is good for
the cooperative. Whereas interest expenses are increased by 14.555%
and 16.30% in 2064/65 and 2065/66 respectively.
Table 3
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Investment and Saving of the DESS
From 2063/64 to 2065/66
Investments Fiscal Savings
year
Amount percent degree Amount percent degree
(X) (Y)
1759888 20.09% 2.342 2063/64 3827798 41.77% 150.372
2516661 28.74% 103.464 2064/65 577873 6.306% 22.7016
4480760 51.17% 184.212 2065/66 4758054 51.224% 156.9264
8757309 100 360 Total 9163725 100% 360
Source; - Annual report of DESS
In the above table total amount of saving and Investments are presented
with their respective change percentage and degree. The total
investment in 2063/64, 2064/65 and 2065/66 are Rs.1759888, Rs
2516661 and 4480760 respectively. And total savings in 2063/64,
2064/65 and 2065/66 are 3827798, 577873 and 4758054 respectively.
It can be shown from the pie chart.
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Figure No. 4
Pie-Chart for the Investment from 2063/64 to 2065/66
Figure no. 4
Pie-Chart for the Saving from 2063/64 to 2065/66
2.3 Average
Average Investment and savings are calculated as follows;-
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Average Investment(X) = Sum of investment of 3 years / no. of
years
=8757309/3
=Rs. 2919103
Average Saving(Y) = sum of saving of 3 years/No. of year
=9163725/3
=Rs. 3054575
Hence,
Average investment is Rs. 2919103
Average saving is Rs. 3054575
Here,
X= Total Investments
Y=Total Savings
Chapter Three
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Summary, Conclusion & Recommendation
3.1 Summary
The Deurali Cooperative Organization Limited (DESS) was
establishedin 2056.It has been providing significant and important
facilities and services to its local people. DESS has provided various
accounts option to attract saving e.g. Regular saving account and
Optional saving account. This Cooperative has facilitated its local area
financially. It has been providing loan to its shareholder in various
types. Recently it has introduced computer loan and others education
loan.
This investigation attempts to analysis the investment and saving.
General audit report and other documents are taken as the source for
data collection. During the data collection period meetings are
organized to get more information to facilitate Investigation to make it
more accurate and more reliable. The members are found so creative
about their act and their responsibility. Meetings are focused on the
saving and Investment.
Investing and saving are very important functions of the cooperative to
accomplish the goal. Data are presented through the table, bar diagram,
pie-chart. Graph etc to simplify understanding various aspects of
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Investment and saving. It has assisted with collected data to make it
factual and reliable.
3.2 Conclusion
This investigation is focused on the I/S of the Despite aims to
study the of various aspect of I/S. It has providing its facilities to the
certain people although it has played vital role to upgrade their life
standard. After deep analysis of the data and organization following
points are presented as the conclusions;-
i. Balance sheet of this Cooperative presents real image of its
financial affairs.
ii. Interest charged against the loan is competitive.
iii. Cooperative has provided loan to its shareholder only.
iv. Investment and saving are regularly increasing.
v. Interest on investment and saving are increasing.
vi. This cooperative has provided high facilities and services to
its shareholder.
3.3 RECOMMENDATION
During the investigation various types of the matters encountered
which are according the demand of the current situation. The DESS has
been conducting annual general meeting and different type of meetings
to accept the views and suggestions of shareholders. The following
suggestions are advised to the DESS:-
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1) Investment collecting in not accelerating so this investigation
suggested to
Use various tools to acetate the collection.
2) Loan is provided at the low rte of interest so the interest is not
meeting the necessary expenditure of the DESS so this investigation
suggested to improve the rate of interest.
3) Savings are not accelerating so this investigation suggested to
introduce different type of account to promote savings.
BIBLIOGRAPNY
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Deurali Cooperative organization Limited(DESS)
Inaruwa,Sunsari, annual audit report and annual general meeting
report 2066.
Bajracharya, BC 1st Edition, 2053 “Business Statistics &
Mathematics”
M.K. publications, Bhotahity, kathmandu
Joshi, PR (2002) “Research and Methodology”, Budda
Academic Publication, kathmandu
APPENDIX
In this section audited report of DESS for the three years are presented
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