1

CHAPTER-I

INTRODUCTION

1.1 Background

‘Co-operatives’ refers to work together for common benefit. A co-operative

organization is such an organization which is established by economically weak

persons. This organization functions under their mutual co-operation of all the

members. Specially, co-operative organization is such autonomous organization,

which is established voluntarily by the group of persons for the fulfillment of the

social, economical and cultural expectations with the democratic control and flow. If

we analyze the history of it, we can find that it is the organizations established by

economically and socially exploited people from the rich businessmen.

At the outset, the co-operative organization came into existence after the

establishment of consumers co-operatives society named as ‘Rochdale society of

equitable pioneers’ in England by Robert Owen with the objective of saving poor

people from economic exploitation, to eliminate the middlemen and to make the ideal

society in October 24, 1944 A.D. After the establishment of it, such organizations

were developed in Germany, Italy, France, and Japan in 1850 A.D. sulj established a

co-operatives organization to save the farmer providing the loan at the lower rate of

interest with the result of the development of co-operatives, international co-

operatives alliances were established in 1895 A.D. in England.

 2

Co-operative is the form of organization in which persons voluntarily

associate together as human beings on the basis of equality together for the promotion

of economic interest themselves.

From the analysis of above definitions we can say that co-operatives is the

organized activities of similar interest group for their shake with some objectives. Its

main objective is to canalize to the number of people in an organization to protect

their financial interest. It is not capitalist and socialist concept but it is an equitable

concept. Entire profit and loss of co-operatives organization is distributed among all

the members on the basis of their investment.

In conclusion a Co-operatives Development Board Act was enacted on Kartik

21, 2049. Under this act national co-operative development board has been

established for the economic and social enlistment of the people of weaker section

according to co-operatives as a group. It was goal to work combinable as well. Like

this “Chirayu Saving and Loan Co-operatives limited” is a co-operative limited,

which was established on 2065 B.S. It is located in Itahari -2, Sunsari, Nepal. It was

established by 25 share- holders investing share capital of Rs. 2,90,000 and now its

shareholder are around 1193 and share capital of Rs. 9,08,700. This organization has

some goal. Some of them are to increase self-esteem of each member to serve people

or customer co-operatively as a group such as: providing loan, saving deposit etc. to

help poor and unemployed people by providing loan in cheap or lower interest rate.

Developing self- confidence and economic status people etc., this co-operative limited

has been providing different facilities to the member such as door to door deposit,

house and shop loan etc.

 3

This co-operatives organization helps to improve poor family and unemployed

population in Itahari municipality. And it also helps to develop their living standard. It

has provided different facilities to the members. So, it can be increased in economic

growth of poor family and unemployed person.

1.2 Problem Statement

Problem statement are the portion of report which attempts to solve those questions

which the field work report writer objectively desires to be solved .This field work

report concentrates to the analysis of cash inflows and outflows. This research work

will try to seek the answer of the following questions;

●What are the sources and uses of cash?

●How much the cash move or flow in operating, investing and financing

activities?

●What is the trend of cash flow in three activities?

●By how much amount of cash is increased or decreased in the organization

(Compared to previous year).

1.3 Objectives

Objectives of study are the backbone of research which should be matched with all

components to the report. Such as topic, data and information, presentation and

analysis etc. The aim of study is to find out the fact which is hidden and which has not
 4

been discovered as yet. Therefore, the objectives of the study are to discover answer

to the questions through the application of scientific procedures.

The objectives of this report is to express an opinion of financial statement

related to cash inflow and outflow from operating, investing, and financing activities.

Some of the objectives of this report are listed below:

●To know the cash inflow and outflow of the organization.

●To analyze whether the cash amount of current year has been increased or

decreased in the organization.

●To examine how much cash is collected from and paid to operating,

investing and financing activities.

1.4 Rationale

The cash flow should be analyzed properly to manage the cash of the organization.

Cash flow helps to identify the sources from where cash inflows have arisen and also

shows the various activities where the cash was utilized. It is significant to the

management for proper cash planning and maintaining a proper matching between

cash inflow and outflow. It report the amount of cash used and received during the

period in different activities such as operating, investing and financing activities. It

shows the efficiency of the firm in generating cash inflows from its regulation

operation. It helps for appraisal of various capital investment programs to determine

their profitability.

Thus the cash flow is very essential to the entire concerned group who is

associated directly or indirectly with the company in the relation of cash and cash
 5

equivalent receipts and payment. Here the report writer wants to test and utilized

his/her theoretical knowledge which is gained in the process of training of practical

field. It is also the partial fulfillment of the requirement of the degree of BBS.

1.5 Report Structure

The field report is based on cash flow of Chirayu Saving and loan Co-operative

organization Ltd. which helps to analyze various aspects of cash received, cash

payment, cash flow from operating activities, investing activities, financing activities

and overall cash flow of organization. The field report contains five parts which can

be summarized as:

The first chapter “Introduction” includes background, problem statement,

objectives, rationale and report structure.

The second chapter “Related Literature Review” includes conceptual review,

review of previous work and research gap.

The third chapter “Methods” includes types of research, population and

sample, types of data, data collection procedures, instruments, techniques of analysis

and limitation of the study.

The fourth chapter “Results and findings” includes presentation of data in

table and figures and their analysis and major findings.

The fifth chapter “discussion and Conclusion” includes discussions,

conclusion and implication of the report.

 6

CHAPTER-II

RELATED LITERATURE REVIEW

2.1 Conceptual Review

A literature review is a summary and analysis of current knowledge about a particular

topic or area of inquiry. In other words, the analysis of previous studies for knowing

the research in detail is known as the literature review. After selecting the topic of the

research, the researcher should study the different journals, periodical, newspaper,

published or unpublished bibliographies, books, etc. to collect or gather the

information about the selected topic of the research. This process of studying different

educational materials is known as review of the literature. Literature review plays a

significant role in facilitating other step of the research process. The information

collected about the earlier studies, if in any way are similar to the study in hand

should be provided by reviewing of literature. By consulting a library, studying

encyclopedias, surfing the interest review etc. the literature review is done.

The cash flow covers the area of study about current assets and current

liabilities of a financial institution. Generally, cash flow refers to the arrangement of

cash inflows and cash outflows of every co-operative institutions. Cash flow makes

proper planning of cash budgeting over the institution. In order to achieve the

efficiency of cash flow, the financial manage should improve cash flow techniques.

For this the main techniques of cash flow are to accelerate the cash collection and to

decelerate cash disbursement as far as possible. For this, the customers are to
 7

encourage paying promptly offering cash discount, systematic billing system and

notifying the period of payment.

Cash flow is one of the key area of working capital management. It is also the

ultimate output expected to be realized by selling the goods and services. Cash

shortage will disturb the firms manufacturing operation while excessive cash will

simply remain idle, without contributing anything towards the firm profitability. So,

the firm should keep optimal level of cash neither more nor less. Cash flow concerned

with the managing of:

 Cash flows in and out of the firm.

 Cash flows within the firm.

 Cash balances held by the firm at a point of time by financing deficit or

investing surplus cash.

 Cash planning (cash budgeting).

2.2 Review of Previous Works

This study is conducted by studying the previous report of different researchers

related to this topic. The previous report of various researchers is taken as reference

for the conduction of this report.

Chapagain, (2009) conducted a fieldwork on cash flow analysis of Vulke

Saving and Credit co-operative limited on the year 2009 and made the following

conclusions.
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 Cash receipt from operating activities and cash used in operating activities

both are increasing due to which total operating activities also increased in the

fiscal year 2068/69, 2069/70, 2070/71 with the amount Rs. 1,01,735.62,

1,03,151.75 and 2,79,050 respectively, which shows the strong liquidity

position.

 Cash receipt from investing activities and cash used in investing activities are

fluctuating, due to the total amt. of investing activities of three years are in

negative. It shows that there is more out flow and less inflow.

 Cash receipt and used in financing activities are increasing, due to which total

financing activities also increase during the fiscal year 2068/69, 2069/70 and

2070/71.

Poudel, (2006) conducted a fieldwork on the same topic of Durga Saving and

Credit Co-operative Ltd. and made following conclusions.

 Cash receipt from operating activities and cash used in operating activities

both are increasing due to which total operating activities also increased in the

fiscal year 2068/69, 2069/70, 2070/71.

 Cash receipt from investing activities and cash used in investing activities are

fluctuating, due to the total amt. of investing activities of three years are in

negative. It shows that there is more out flow and less inflow.

 Cash receipt and used in financing activities are increasing, due to which total

financing activities also increase during the fiscal year 2068/69, 2069/70 and

2070/71.

 The firm has highest outflow of cash in the fiscal year 2069/70.
 9

Chaudhary, (2012) conducted a fieldwork on the same topic of Purbanchal

saving and credit co-operative ltd. and made following conclusions.

 Cash receipt from operating activities and cash used in operating activities

both are increasing due to which total operating activities also increased in the

fiscal year 2068/69, 2069/70, 2070/71 with the amount Rs. 1777155.43,

2238709.84 and 2939494.07 respectively.

 Cash receipt from investing activities and cash used in investing activities are

fluctuating, due to the total aPmt. of investing activities of three years are in

negative. It shows that there is more out flow and less inflow.

 Cash receipt and used in financing activities are increasing, due to which total

financing activities also increase during the fiscal year 2068/69, 2069/70 and

2070/71.

 The firm has highest outflow of cash in the fiscal year 2069/70.

 Cash is generated by operating and financing whereas cash is not generated by

investing activities.

2.3 Research Gap

Research gap refers to the untouched area or area of contradiction after the literature

review. Various studies have been done under the topic cash flow analysis of Chirayu

saving and loan co-operative organization ltd. i.e saving and loan co-operative

organization in Nepal. But they are concerned with the study of contemporary

periphery of study time. There is a research gap on the studies that they have not

current situation on cash flow analysis of Chirayu saving and loan co-operative ltd. In
 10

this study an attempt has been made to study cash flow analysis and test of

consistency of the saving and loan co-operative organization.

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CHAPTER-III

METHODS

3.1 Type of Research

Research is a systematic and organized effort to investigate a specific problem that

needs a solution. This process of investigation involves a series of well throughout

activities of gathering, recording, analysis and interpreting the data with the purpose

of finding answers to the problem.

There are various types of research such as applied, descriptive, quantitative

and conceptual research. This report follows descriptive research method. A

descriptive research identifies problem or justify current condition and practices to

make comparisons and evaluations in making future plans and decisions. In other

words, it is a process of accumulating facts. One may undertake a descriptive study

about the workers in a factory, their age distribution, community-wise distribution

level, state of physical health etc. A descriptive research is a process of accumulating

facts, views, or opinion of the people towards any right, capital punishment, college

autonomy, an industrial establishment etc. It does not necessarily seek to explain

relationship, test hypothesis, make predictions or get at meanings and implications of

the study.
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3.2 Population and Sample

Since new saving and loan co-operative organizations are being incorporate every

years, the number of saving and loan co-operative organizations in Nepal has been

increasing rapidly. Currently, however, there are around 29,825 saving and loan co-

operative organizations functioning all over the country. All saving and loan co-

operative organizations are taken as populations for the study. The selection of the

sample co-operatives organizations here is made on the basis of their performance,

i.e., they are categorized as best co-operative organization of Nepal. The selected co-

operative organization as sample as best co-operative organization of Nepal are

Chirayu saving and loan co-operative organization ltd.

3.3 Types of Data

Data refers to the information or facts collected through record, observation and

measurement. Data can be collected from two sources i.e. primary and secondary. The

types of the data to be used depend upon the nature and purpose of the study.

3.3.1 Primary data

Primary data refers to those data which are collected for the first time for certain

specific purpose. These data are original in nature. They are also called first hand data

or field data or basic data or pure data. Primary data are those where the researcher

himself goes to the field and collects required data and information by observing or

questioning or interviewing the different events. Primary data are usually in the form

of raw materials. In others word, they are the data that did not previously exist in any

organized fashion. Generally, primary data requires large amount of expenses and
 13

require long period in collecting the data but such data may be highly reliable and

accurate.

3.3.2 Secondary data

When the primary data is used by the person or which the researchers collect from the

record person is secondary data. These are the data which are originally collected but

obtained from some published or unpublished sources. These types of data are not

original in nature. Sources of secondary data include scale information, internally

generated research report, books, periodical published reports etc. Secondary data

generally may not require large amount of expenses and long time.

To prepare this field report, I have used both of primary and secondary method

of data collection. However, most of the information regarding cash flow analysis

hass been collected using the secondary methods like looking their annual report.

3.4 Data Collection Procedure

Data collection Procedure is the process of gathering and measuring the information

on variables of interest is an established systematic fashion that enables one to answer

stated research question, test hypothesis and evaluate outcomes. The data collection

component of research is common to all field of study including physical and accurate

and honest collections remains the same. I have collected the secondary data through

internet, annual reports, journals, accounts statements, research articles. I have also

collected some primary data through questionnaire and interview.

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3.5 Instruments

The quantitative data obtained from structured questionnaires are first processed

through validation, editing and coding. Secondary processed data has been presented

in tabular form and bar diagrams are used in data analysis. Finally, the data are

interpreted with additional information. I have collected the secondary data through

internet, annual reports, journals, accounts statements, research articles. I have also

collected some primary data through questionnaire and interview.

3.6 Techniques of Analysis

The collected data through the above tools were analyzed using the techniques of cash

flow analysis to find out the true picture of the cash inflow and outflow of CSLCOL.

The collected data will be analyzed by using following tools:

 Cash flow from operating activities.

 Cash flow from investing activities.

 Cash flow from financing activities.

3.7 Limitations

Each and every report study has certain assumptions and limitations. Therefore this

report also has some assumptions and limitations which help the reader of the report

to confirm about boundaries of the study report which are listed below:

 The available data of an organization have been assumed to be correct and

true.
 15

 Only three year data (from fiscal year 2070/71, 2071/72, 2072/73) are

analyzed in this report.

 Fiscal year 2070/71 is assumed a base.

 All the amounts used in this report are in rounding figure.

 16

CHAPTER-IV

RESULTS AND FINDINGS

4.1 Presentation of Data in Tables and Figures and Their Analysis

Presentation and analysis of data is the explanation of data collected by the

researcher related to the topic in the report to understand the matter easily. This is

the main part of the report. In this section, the data and information which are

collected at the process of field work should be presented and analyzed using

different tables, diagram, charts etc. related to the topic to analyze the subject

matter of the topic.

Presentation of data should be based in the objectives of the study to know the

flow of cash generated by the firm. To meet these objectives, the report writer has

presented the data in tables, graphs, figures and analyzed using different tools and

techniques of accounting, statistical and financial tools.

Here, as the topic is cash flow, the data and information related to cash is

mentioned in the table. Such as how much cash amount has been collected and

paid by the organization.so, to manage the cash of the organization, operator

prepares cash flow statement which is shown below:

 17

Table 1

Cash Flow Statement of Fiscal Year 2070/71, 2071/72, 2072/73 of Chirayu Saving

and Loan Co-operatives Ltd.

S.N Particulars 2070/71 2071/72 2072/73

.
1 Operating
activities:
Cash receipts:
Interest receipts 19,62,934 35,10,090 56,52,598
Other income 22,013 4,16,577 5,59,176
Final penalty 81,256 1,88,177 5,36,396
Sales of goods 5,53,742 1,800 900
Total receipts 26,19,945 41,16,644 67,49,070
Cash payment: 4,43,972 4,98,633 5,73,823
Salary and 36,000 36,000 36,000
allowances
Rent 28,138 1,655 42,879
Printing and 1,995 1,655 3,360
stationary
Repairs 10,99,357 11,37,547 22,66,934
Interest 1,47,663 54,465 7,35,292
expenditure
Other 0 0 2,16,160
expenditure
Discount on 0 0 0
interest
Total payment 17,57,125 17,29,955 38,74,488
Total operating 8,62,820 23,86,689 28,74,622
cash flow(A)
2. Investing
activities
cash receipts:
Repayment of 96,97,576 1,07,79,168 1,93,59,946
loan
Receipts from 0 0 3,838
investment 31,01,738 16,56,102 26,34,946
Receivable
receipts
Sale of land 0 0 3,53,355
Total receipts 1,27,99,314 1,24,35,270 2,23,52,090
 18

cash payment:
Loan and 12,933,500 1,88,73,000 2,80,47,000
investment
Account 34,497 6,63000 15,42,090
receivable
Fixed assets 1,115 8,95,450 1,09,115
Other assets 1,000 0 0
Cash payment 1,29,70,112 2,04,31,450 2,96,98,207
Total investing (170,798) (79,96,180) (73,46,117)
cash flow(B)
3 Financing
activities
Cash receipt:
Issue of share 68,900 70,700 12,81,600
General reserve 72,691 48,000 93,600
Deposit 8,79,59,961 11,89,80326 16,30,04,651
Payable 0 3,29,990 9,78,162
Total receipts 8,81,01,522 11,94,29,016 16,53,58,013
cash payment:
Return of share 3,600 57,200 400
Funds return 1,98,468 3,61,758 2,91,033
Refund of 16,76,365 4,75,372 7,27,026
payable
Refund of 8,42,90,097 11,61,73,393 15,23,72,979
deposit
Other liabilities 3,13,489 81,361 28,48,903
Total payment 8,64,85,019 11,71,49,084 15,62,43,941
Total financing 16,19,503 22,79,932 91,14,072
cash flow(C)
4. Cash 23,11,525 (33,29,559) 46,42,577
Flow(±A±B±C)
5. Operating cash 58,58,795 81,70,320 48,40,761
balance
6 Closing cash 81,70,320 48,40,761 94,83,338
balance
Source: Appendix-A

In table 1, 3 years data are shown which makes clear about the cash that is

managed by the organization for the effective operation. The amount of cash

inflow and outflow of Chirayu Saving and Loan Co-operatives Ltd. is shown in

the table 1. Cash receipts and paid through three types of activities i.e. operating,
 19

investing, and financing activities. Only three years data i.e. 2070/71, 21071/72

and 2072/73 are shown in the table.

Analysis of Cash Flow

Analysis of data is done to make clear about the matter that is related to the topic

of the study selected by the researcher to make the report. So, under this section,

report writer use their different techniques to interpret the data related to the topic.

For this purpose they use tables, graphs, charts, etc. to analyze the data that are

involve in the study. Similarly, different tables and graphs are shown to analyze

the cash flow which is as follows:

4.1.1 Cash Flow from Operating Activities

Table 2

Statement of cash receipt and payment in CFOA

Particulars 2070/71 2071/72 2072/73

Cash receipt 26,19,945 41,16,644 67,49,070
Cash payment 17,57,125 17,29,955 38,74,448
Increase/Decrease in cash 8,62,820 23,86,689 28,74,622
Source: Appendix-A

Figure 1.Cash receipt and payment from operating activities

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8000000

7000000

6000000

5000000
Amount

4000000
Cash receipt
3000000 Cash payment

2000000

1000000

0
2070/71 2071/72 2072/73
fiscal year

In table 2 and figure 1, only the cash flow from operating activities are shown. The

cash receipt is 2,619,945 and cash payment is 1,757,125 in 2070/71 which is less than

2071/72 and in 2072/73 cash receipt is 4,116,644 and cash payment is 1,729,955

which is less than cash receipt and payment of the year 2072/73. Similarly, cash

receipt and payment is 6,749,070 and 3,874,448 respectively in 2072/73. The total

amount has been increased in each year as the cash receipt and payment is increasing

during each year. Therefore, the table shows that there is more cash inflow and less

cash outflow in the organization.

4.1.2 Cash Flow from Investing Activities

Table 3

Statement of cash receipt and payment in CFIA

 21

Particulars 2070/71 2071/72 2072/73

Cash receipt 1,27,99,31 1,24,35,270 2,23,52,090

4
Cash payment 1,29,70,11 2,04,31,450 2,96,98,207

2
Increase/Decrease in cash (1,70,798) (79,96,180) (73,46,117)
Source: Appendix-A

Figure 2. Cash receipt and payment from investing activities

35000000

30000000

25000000

20000000
Amount

15000000 Cash receipt

Cash payment
10000000

5000000

0
2070/71 2071/72 2072/73
Fiscal year

In the table 3 and figure 2, only the cash flow from investing activities is shown. The

cash receipt is 12,799,314 and cash payment is 12,970,112 in the year 2070/71 and in

2071/72 cash receipt is 12,435,270 and cash payment is 20,431,450 which is less than

the cash receipts and payment of the fiscal year 2072/73. The cash receipt and

payment in the year 2072/73 is 22,352,096 and 29,698,207 respectively. The total

amount of cash has been decreased in increasing rate due to the fluctuation in cash

receipt during the fiscal year 2070/71, 2071/72 and 2072/73.

 22

4.1.3 Cash Flow from Financing Activities

Table 4

Statement of cash receipt and payment in CFFA

Particulars 2070/71 2071/72 2072/73

Cash receipt 88,101,522 119,429,016 1,653,580,132
Cash payment 86,482,019 1,17,149,084 156,243,941
Increase/Decrease in cash 1,619,503 2,279,932 9,114,072
Source: Appendix-A

Figure 3. Cash Receipt and payment in CFFA

1800000000

1600000000

1400000000

1200000000
Amount (in "000")

1000000000

800000000 Cash Receipt

Cash Payment
600000000

400000000

200000000

0
2070/71 2071/72 2072/73
Fiscal year

In table 4 and figure 3, cash flow from financing activities are shown the cash

receipt is 88,101,522 and cash payment is 86,482,019 in the fiscal year 2070/71

which is less than the cash receipt and payment of the year 2071/72. The cash

receipt is 119,429,106 and cash payment is 117,149,084 which is less then fiscal

year 2072/73.
 23

Similarly, cash receipt and payment is 1,653,580,132 and 156,243,941 in the

year 2072/73 respectively. Therefore, the total amount of cash is increasing each

year due to the increases of cash receipts and payments in the fiscal year 2070/71,

2071/72 and 2072/73.

4.1.4 Overall Cash flow

Figure4. Overall cash flow

6000000
5000000
4000000
3000000
Amount in Rs

2000000
1000000
Overall cash flow
0
2070/71 2071/72 2072/73
-1000000
-2000000
-3000000
-4000000
Fiscal year

In figure 4 and x-axis represent the fiscal year and y-axis represent the amount of

cash flow. In the fiscal year 2070/71, the amount of cash is very low i.e. 2,311,525. It

shows that there is more inflow and less out flow of cash in 2070/71. In the fiscal

year 2071/72, the amount of cash is more than 2070/71 and less than 2072/73. But the

graph is move down from the origin due to more out flow and less inflow of cash

during the year 2071/72. So, it is negatively shown in the diagram. The amount of

cash flow is 3,329,559 in the year 2071/72. Similarly, the fiscal year 2072/73 the cash
 24

flow amount is very high than both year. The cash flow amount is 4,642,577 in the

year 2072/73 which is shown as 4,642,577 in the figure 4. Since, it is positive in the

diagram, it is clear that there is more inflow and less out flow of cash in the

organization in the 2072/73. Hence, by the observation of above diagram it is clear

that inflow of cash is high in the year 2071/72. Therefore, the organization has

received more amounts of cash in 2072/73 which help the organization to get profit.

Similarly, the organization has paid more amounts of cash in 2071/72 which shows

that there is more cash out flow and less cash inflow.

4.2 Major Findings

After the research work the report writer should highlight the importance fact. For this

purpose, the report writer has shown the major findings after the research study.

Chirayu saving and loan co-operative organization limited has some goals they

are increase self- esteem of each member to serve people or customer co-operatively

as a group such as: providing loan saving deposit etc. to help poor and unemployed

people by providing loan in cheap or lower interest rate. This organization also helps

to improve living standard of people by increasing economic growth of poor family

and unemployed person.

The cash flow of operating, investing and financing activities are presented in

different table. In the table, how much cash is receipt and paid has been shown and

whether the cash has been increased or decreased or decreased is also presented.

Therefore, it was found that in the cash flow from operating activities, the cash receipt

and paid 2070/71 is less than 2071/72 and cash receipt and paid in 2071/72 is less
 25

than 2072/73 which shows that there is more cash inflow and less cash outflow in the

organization. In the cash flow from investing activities, the cash receipt and payment

has been fluctuating during the year 2070/71, 2071/72 and 2072/73. So, the amount

has been decreased in increasing rate due to fluctuation in cash. Similarly, the cash

receipt and paid has been also increasing during the year 2070/71, 2071/72 and

2072/73in cash flow from financing activities.

The overall amount of cash flow has been also shown by drawing bar diagram.

It has been shown that there is more inflow and less outflow of cash in the

organization during the year 2070/71. In the fiscal year 2071/72 the graph is shifted

down from the origin due to the more outflow and less inflow of cash in the

organization. Similarly, the inflow and outflow of cash is more and less respectively

in the fiscal year 2072/73.

CHAPTER-V

DISCUSSION AND CONCLUSION

 26

5.1 Discussion

The main objective of Chirayu Saving And Loan Co-Operative Organization Ltd. is to

serve the people to improve their living standard by providing different facilities.

Such as door to door deposit, house and shop loan etc. cash is the basic input needed

to keep the business running in a continuous basis. Cash flow analysis is important

because there is uncertainty of cash inflow and outflow during some period in

organization. Since, it is important to manage cash in every sector of the organization,

the report writer thought to research and investigate about the cash flow.

The data and information is taken from Chirayu Saving And Loan Co-

Operative Organization Ltd. for the preparation of this field report. The collected data

are presented and analyzed using different methods and techniques. Since the

presentation and analysis of the data is the important chapter of report, the report

writer has presented the data in table and graphs and analyzed.

Cash flow statement has been prepared to show the cash flow of CSLCO Ltd.,

Cash inflow and outflow from three activities i.e. operating, investing and financing

are presented by showing different tables. Therefore, cash flow from operating

activities shows that there is more inflow and less outflow of cash during the fiscal

year 2070/71, 2071/72 and 2072/73. Cash flow from investing activities shows that

there is more out flow and less inflow of cash during the fiscal year 2070/71, 2071/72

and2072/73 in case of financing activities. To make clear about the cash flow, the bar

diagram has been prepared in this report which include overall cash flow. It shows

how much amount of cash is paid during these three years.

 27

5.2 Conclusion and Implications

After the completion of this project report on cash flow of CSLCOL, the following

points are concluded according to the research objectives.

 Cash receipt from operating activities and cash used in operating activities

both are increasing due to which total operating activities also increased in the

fiscal year 2070/71, 2071/72, 2072/73 with the amount 862,820, 2,386,689

and 2,874,622 respectively

 Cash receipt from investing activities and cash used in investing activities are

fluctuating, due to the total amt. of investing activities of three years are in

negative. It shows that there is more out flow and less inflow.

 Cash receipt and used in financing activities are increasing, due to which total

financing activities also increase during the fiscal year 2070/71, 2071/72 and

2072/73.

 The firm has highest outflow of cash in the fiscal year 2071/72.

 Cash is generated by operating and financing whereas cash is not generated by

investing activities.

Its implications are as follows:

 Co-operative should increase the number of shareholders and should provide

different facilities to their shareholder in order to motivate the general public

to purchase their share.

 Co-operative should provide different sorts of loans like home loan, vehicles

loan, education loan etc in low interest rate.

 28

 Since the co-operative is the organization which is established in order to save

and utilized the capital of poor people by giving high interest rate on their

investment in order to make their living standard high.

REFERENCES

Chapagain, R. (2009). Cash Flow Analysis of Vulke Saving and Credit Co-operative

Ltd. Sundarpur: A fieldwork report submitted to Janta Multiple Campus,

Itahari.
 29

Chaudhary, A. (2012). Cash Flow analysis of Goodwill Finance Limited Itahari: A

fieldwork report submitted to Vishwa Adarsha College, Itahari.

Dangol, R.M. (2061). Accounting for Financial Analysis and Planning. Kathmandu:

Taleju Prakashan.

Jhingan, M.L. (2004). Money, Banking, International Trade and Public Finance.

Delhi India: Vrinda publication.

Joshi, P.R. (2005). Fundamentals of Financial Management. Kathmandu: Asmita

Books Publishers and Distributors.

Poudel, P. (2006). Cash Flow Analysis of Durga Saving and Loan Co-operative Ltd.

A fieldwork report submitted to Itahari: Kasturi College of Management,

Itahari

Varma, C.R.T. (2003).Fundamentals of Accounting. New Delhi: The Institute of

Chartered Accountants of India.

APPENDICES

Appendix-A

Cash Flow Statement of fiscal year 2070/71, 2071/72 and 2072/73 of Chirayu Saving

and Loan Co-operative Organization Ltd.

S.N Particulars 2070/71 2071/72 2072/73

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.
1 Operating
activities:
Cash receipts:
Interest receipts 19,62,934 35,10,090 56,52,598
Other income 22,013 4,16,577 5,59,176
Final penalty 81,256 1,88,177 5,36,396
Sales of goods 5,53,742 1,800 900
Total receipts 26,19,945 41,16,644 67,49,070
Cash payment: 4,43,972 4,98,633 5,73,823
Salary and 36,000 36,000 36,000
allowances
Rent 28,138 1,655 42,879
Printing and 1,995 1,655 3,360
stationary
Repairs 10,99,357 11,37,547 22,66,934
Interest 1,47,663 54,465 7,35,292
expenditure
Other 0 0 2,16,160
expenditure
Discount on 0 0 0
interest
Total payment 17,57,125 17,29,955 38,74,488
Total operating 8,62,820 23,86,689 28,74,622
cash flow(A)
2. Investing
activities
cash receipts:
Repayment of 96,97,576 1,07,79,168 1,93,59,946
loan
Receipts from 0 0 3,838
investment 31,01,738 16,56,102 26,34,946
Receivable
receipts
Sale of land 0 0 3,53,355
Total receipts 1,27,99,314 1,24,35,270 2,23,52,090

cash payment:
Loan and 12,933,500 1,88,73,000 2,80,47,000
investment
Account 34,497 6,63000 15,42,090
receivable
Fixed assets 1,115 8,95,450 1,09,115
Other assets 1,000 0 0
Cash payment 1,29,70,112 2,04,31,450 2,96,98,207
Total investing (170,798) (79,96,180) (73,46,117)
cash flow(B)
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3 Financing
activities
Cash receipt:
Issue of share 68,900 70,700 12,81,600
General reserve 72,691 48,000 93,600
Deposit 8,79,59,961 11,89,80326 16,30,04,651
Payable 0 3,29,990 9,78,162
Total receipts 8,81,01,522 11,94,29,016 16,53,58,013
cash payment:
Return of share 3,600 57,200 400
Funds return 1,98,468 3,61,758 2,91,033
Refund of 16,76,365 4,75,372 7,27,026
payable
Refund of 8,42,90,097 11,61,73,393 15,23,72,979
deposit
Other liabilities 3,13,489 81,361 28,48,903
Total payment 8,64,85,019 11,71,49,084 15,62,43,941
Total financing 16,19,503 22,79,932 91,14,072
cash flow(C)
4. Cash 23,11,525 (33,29,559) 46,42,577
Flow(±A±B±C)
5. Operating cash 58,58,795 81,70,320 48,40,761
balance
6 Closing cash 81,70,320 48,40,761 94,83,338
balance
Source: Annual financial report of CSLCOL