1.1 Background of the study

Introduction

1.1 Background of the study
A co-operative is an  organization whose primary functions are concerntrated with collection  of idle money from  general public  and providing loan to small business and individuals for expenditure.In other words, cooprative are the important financial instititutions in the local economic and needs. Normally co-opratives finance collects money from customer to saving their a small part of money.A small parts os money collects and they can be invest different sectors such as small business, agriculture's product for which it changes certain percentage  of interest.The interest is higer than interest paid  by the coopratives to collected fund.Generally the interest rate of collection of fund of cooperative higer than bank because this is more risky than bank.The cooperative orgnization income from their difference in pays interest and receives interest.
Cooperative is an autonomous association of person united voluntarily to meet their  common economic,social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise
Cooperatives are based on the values of self-help,self-responsibility ,democracy ,equallity,equity and socidarity.In the tradition of their founder,cooperative member belive in ethical value of honesty,openness,social responsibility and caring for other.Co-operatives are business owned and run by and for their members.whether the mambers are the customers,employees or residents they have an equal say in what  the business does and a share in  profits.As business driven by values not  just profit, cooperatives shares internationally agreed principle and act together to build a better world through cooperation successful cooperatives arround  the world are allowing people to work together to create sustainable enterprises that generate jobs and prosperity and provide answers to poverty and short  term  business practice

1.1.1 Introduction of Mangala Gauri S. & C. C. Ltd.

Mangala Gauri Saving &credit Cooperative  Ltd. established in 18-04-2066 under the nepales cooperative Act-2048,is financial institution permitted to carry out financialtrancations .The office located in New Baneshwor,Kathmandu.This institution is managed by perfectly skilled personnel who have involved in different financial sector and suggested provided  to to cooperative's staff for  retirement staff of Government ,who have export for financial sector.The organization aim to provide attrative interest rates to the collected principle and provided loan to honest professionals and entrepreneurs to promote their business ,making them capable and  independent in competitive financial environment with the motto of.
In this orgenization ,7th  Annual General metting completed ,the total shareholder number is 401,total capital Rs.1,55,63,200 and deposit collection Rs.17,64,74,041. Mangala Gauri Saving &Credit Cooperative Ltd.beleves that a cooperative is only successful when its customers are successful
Mission
''To be the  leading co-operative organization in Nepal by providing the finest quality financial products and service to our customer: enhance our shareholder's value, contribute to the economic rise of the country.''
Vision
''To support individuals, families and business  to attain financial independance and improve their financial wellbeing''
 
1.2 Problem Statement
Ratio analysis is depended on the items of financial statements like the balance sheet ,income statement and other.The researchable  questions are as follows;
• How the co-operative maintanns its financial position
• Whether the co-operative is able to utlize its funds
       
1.3 Objectives of the study
The main objectives behind this research are as follows;
• To analyze the strength and weaknesses of financial position
• To find out the liquidity ratio of  this cooperative
• To fulfillment of requirement for  the BBS

1.4 Limitations of stuudy
In the research time ,we are not anle to use primary data of this organization.We used secondary data like annual general metting report, other published and unpublished data.   
1.5 Related Literature Review

1.5.1 Literature Review
Financial performance anlysisis used to evaluated various aspects of a organization's operating and such as its efficency ,liqudity,profibility and solvency.The trend of these ratios over time is studied to check whether they are improving.But this report was making first time in this organization.So, we can not abale to compare other report.We only know only financial position of the cooperative.And we compared therotical best ratio which we studies at theritical  chapter.
This chapter deals with theoretical aspects of topic of financial analysis of this organization. In this study journals ,audit report ,AGM report and some related  docutoments help to prepare report.This report writing is the necssary for completed the bachelor degree of the T.U.The research writing improves the partical knowledge .We  have the theoritical knowledge and obtain 50 marks of the course of design (BBS)
1.5.2 Report Structure
The structure of the study will try to analyze the study in a systematic way .The study report has designef in three chapters which  are described as follows;
• First chapter will include background of the study, problems statement, objectives of study and limitations of study.
• Second chapter will include related literature  review and report structure.
• And last chapter will include research methodology.it will describes about the various source of data releted with study and various tools and techniques employed for presenting the data

1.6. Methodology
1.6.1 Research method
Research methodology is concern with a varios methods use in the process of  preparing project report.It is the systemetic way to carry out  research how the data are collected and which source the research uses for getting the data is under the research methodology .Research methodology includes research design ,source of data populationand sample e.t.c..

1.6.2 Types of research
The basic types of research commonly in use as:
The present study is mainly based on two types of research design but in our research book of bachelor given this types of research
• Descriptive and analytical
• Applied and fundamental
• Quantitative and qualitative
In our level of BBS, we mainly use descriptive and analytical.

1.6.3 Research design
The research design refers to the  overall stategy that you choose to integrate the different components of the study in a coherent and logical way,ensuring you will effectively address the research problems :it constitutes the blue print for the collection,measurement and analysis of data .A research design is the plan of a research study
1.6.4 Populatiopn and Samplings
The population refers to the industries of the same nature and its services and prduct in general.But we can not applied this samplings and population in the exasitly behaviour bacause we collected secondary data ,this data is not able to give perfectly conclusion
1.6.5 Types of Data
There arw two types of data.First,primary sources of data,this data is first hand data which are collected from the observation .This was not able use for our report  because we are student.Next,secondary sources of data ,which are obtained from different  sources.We collect secondary sources of data from published notive in public and unpublished and AGM,audit report of this organization.The  AGM and audit report takken from Mangala gauri saving and credit cooperative ltd.
1.6.6 Instruments
Analysis may be categorized as descriptive analysis and indiferential analysis.To achive the predetermined objective the research,certain tools are used which are as following:
Current Ratio = Current RatioCurrent Liability
Quick Ratio = Quick AssetsCurrent Liability
Cash to Current Assets Ratio = CashCurrent Assets
Cash to Current Liability Ratio = CashCurrent Liability
Cash and Bank Balance to Deposit Ratio = Cash and Bank Balance Total Deposit
Liquid Assets to Total Assets = Liquid AssetsTotal Assets
Investment to Deposit Ratio = Total InvestmentTotal Deposit
Return to Equity  = Net IncomeTotal Equity
Return on Assets = Net IncomeTotal Assets
Profit Margin Ratio = Net IncomeSales
Net Working Capital Ratio = Net Working CapitalNet Assets
 
References
• Adhikari, D.R. & Pandey D.L. (2074) Business Research Methods-Asmita publication, Kathmandu
• Thapa, K.,parajuli, M.,Dodhari, S.& Shrestha, R.(2073) Fundamentals of Financials Markets & Institutions-Januka publication,kathmandu
• Sharma,D.R.,Thapa,K.,Pandeya,Chudamani,Joshi,R.,Lamsal, L.P.(2073) Fundamentals of Investment-Khanal publication, Kathmandu
• Bhattarai, J. K., Ghimire, S.(2073) Fundamental of Corporate Finance, Kathmandu
• Website: www.nrb.org.np,
 
Table of Content

Title Page No.
1. Introduction 1
1.1 Background of the study 1
1.1.1 Introduction of Mangala Gauri S.&C.C.LTD. 2
1.2 Problem Statement 3
1.3 Objectives os the Study 3
1.4 Limitations of study 3
1.5 Related Literature Review 3
1.5.1   Literature Review 3
1.5.2 Report Structure 4
1.6 Methodology 4
1.6.1 Research Method 4
1.6.2 Type of Research 4
1.6.3 Research Design 5
1.6.4 Population and Sampling 5
1.6.5 Types of Data 5
1.6.6 Instruments 5
References