PROFITABILITY POSITION

                                                                                    Of

                                                  RAJSHREE SAVING AND CREDIT CO-OPERATIVE LTD.

                                                                                      By :

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                                                                            Campus Roll No: 114

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                                                                  Managment Research Committe

                                                                      MMMAC College,Biratnager

                                                                          Faculty of Management

                                                                              Tribhuwan University

                       

                                                  In partial fullfillment of the requirment for the degree of

                                                              BACHELOR OF BUSINESS STUDIES (B.B.S.)

                                                    

                                                                          Biratnager, Nepal

                                                   

                         
TABLE OF CONTENTS

  

CONTENTS

1.1 Background of the Study

1.2 Statement of Problem

1.3 Objectives of Study

1.4 Rational of the Study

1.5 Literature Review

1.6 Research Method

                    1.6.1 Types of Research

                    1.6.2      Area of Research

                    1.6.3 Population and Sample

                  1.6.4 Sources of Data

                    1.6.5 Data Collection Methods

                    1.6.6 Tools and Techniques for Analysis of Data

1.7 Limitation of the Study

1.8 Organization/ Structure of the Study

1.1    Background of the study

                          The term "profit" and "Profitability" are used same but in real sence there is a difference
between these Two words .Profit is a financial benefit, especially the difference between the amount
earned and the expenses. Profitability means ability to make profit from all the business activities of
an organization. it is the most inspiring things for the any kind of business osganization.Profit is refers
to the total income earned by the organization during the specitied period of time. While profitability
refers to the operating of the enterprize to make profit on sale. It is also ability of enterprise to get
sufficient return on the capicital and employees used in the business opertion. It profit make the
organization stronger than the other things while profitability measures the firms efficiency. It is also
a control measure of earning power of a firm as well as operating efficiency. We have to calcuted
profitability by using profitability ratio like , ROE ,ROA, etc . It is also help to developed a conceptual
understanding about the research problem. In the above, there are many factors besides efficiency,
which effect the profitability.

                According to Harward and Upton, " Profitability is the ability of a given investment to earn a
return from its use."

              A co-operative is a firm of business or organization. It is run and controlled by the people who
work for it or use the products or service .Those of people who join a co-operative business share. Its
benefit and profit .Co-operative engaged in Limited financial transaction. These proposal work
analysis the profitability of Rajshree Saving and Loan co-operative Ltd.

                Beginning ,the co-operative movement began in Europ in19th centure, mainly in France and
Britain. Where as ,The first co-operative in Nepal was ESTABILISHED IB 1956.The first co-operative Act
was enacted by the government in 1996,which was followed by the Agricultural co-operative Act.

                  There are 32663 co-operative in Nepal and out of them around 20,000 working in the field
of financial sector .Among them Rajshre e Saving and Credit Society Ltd also one of the major co-
operative. It was first estabilished in 2052 in Malangwa, Sarlahi .The head office of its co-operative is
Malangwa,Sarlahi.It has many branches in many place like:Nepalgung, Birgunj, Biratnager, Itahari,
Kathmandu, Butwal etc.

                    The main focused of this study is how the Rajshree Saving and Credit co-operative Ltd earn
the benefit and what are the factor effected to it. How they provides services in the rural area or
socity.etc..
1.2      Staement of Problem

                    Development of co-operative taking very slowly in Nepal Rajshree Saving and Credit co-
operative ltd is improve their services or not? It can give the satisfaction to his members or not?
Many question are come in people minds or society, so that, some major problem or the statement
of problem of this study or result    is as given below. Which are the main issue of this study.

 What is the profitability position of this co-operative ?

 How can the External and Internal factor effect the profitability ?

1.3        Objectives of the Study

                      It is a voluntary association of person who works together. It works on the principle of

help as well as mutual help. The main purpose or objective is to provide support to the members.
The main objectives of the study is Analyzing the different type of profitability ratio. Some main
objectives are here:

 To observe the trend of profitability position of Rajshree co-operative ltd.

 To utilize its collected resources.

1.4      Rational of the Study

                  In the Nepalese perspective, non of the financial Institution provide services in the rural
area or in the village. Only the co-operative provides the services in that area. In present situation co-
oprative got its justified description and fixed shape. It is provide many facility like: lending and
collection of money ,it supplies seeds, fertilizers. It is also operating co-operative education program.
The rationales of the study are as follows:

 It is help to know how well the co-operative is utilize their collection or deposit

 This study will be help in the economic up lifetime of people and Nation.

 This study will be also help to do saving

 This study takes a aim to help small consumers, product and user.
1.5      Literature Review

                    This part of the study tries to describe the conceptual frame work. A part from these, this
chapter highlights the literature that are available in the concerned subject , review of article,
journals etc.

                  Determinants of co-operative profitability can be split between those that are internal and
external. Internal determinants of co-operative profitability can be define as those factor that are
influence by its . It is influences organizational decision and policy objective. The main objective of
this co-operative are collect deposit as much as possible from the customer and mobilize into the
most profitability sector. If its fails to utilize its collected resources than it can not generate revenue.
Resources mobilization management of co-operative include resource collection , investment
portfolio, loan and advance , working capital, fixed assets management etc.

                      K.C . (2003) , : " Tried to analyzed the present financial position and prospect of financial
co-operatives. She also studied the landing practices and Investment practices of financial co-
operative in Nepal . The financial co-operative going to face the further disbursement like, internal
and external effect ,situation of profit ,members behavior etc.

                  Bhatta (2008),    " Has studied that main objective was to examine the relationship between
financial sector development and economic growth and to examine the relationship development
abd poverty reduction. For analysis the data , he used simple statistical and tables are used to explain
this relationship."

1.6        Research Methods

                    Research refers steps to be followed by researcher at the time of studying the concerned
subject matter in detail which is following:

1.6.1      Type of Research

                Present study is based on secondary sources of data and information, so we have to follow
the descriptive research design.

1.6.2      Area of Research

                  This study simply describes the aims at findings a solution for an immediate problem facing
by society or a business organization.

1.6.3      Population    and Sample

                  Among 32,663 co-operative , Rajshree saving and credit co-operative society ltd have been
selected for the present study. Among 32,663 co-operative 20,000 co-operative are related with the
financial sector. Among them Rajshree co-operative taking as sample.

1.6.4 Sources of Data

                  There are mainly two type of data like : primary data and secondary data .But the research
work will applied or collect as well as secondary data.

1.6.5      Data Collection Methods

                The research consist secondary data. Sconce, the nature of this    Data is different the
collection method is also various. Data will be collected from annual report of Rajshree co-operastive
and internet, books etc.

1.6.6      Tools and Techniques for Analysis Data

                The analysis of data are using financial tools like: ROE,ROA Balance Sheet, Income Statement
etc. It is used to identify the trends or knowing the profitability ratio. Also using table, graph,
percentage etc.

1.7        Limitation of the Study

              Every study has some limitation. This study is conducted in partial fulfillment of the
requirement for the B.B.S. 4th year .Among 32,663 co-operative,s the present study is limited to
Rajshree co-operative ltd, Biratnager , other limitation are as follows:

 The present study will only 3 years

 Lack of time

 Lack of knowledge and study

 The present study is limitation to only one co-operative

1.8      Organization/ Structure of the Study

                The organization of the study tells about the structure of the project work. General project
work report divided into three chapter. Which is given below:

CHAPTER 1 - Introduction : Background of the study ,statement of problem ,objective of the study,
Rational ,Literature review, Research Method, Type of research , Area of research, Population and
sample, Sources of Data, Data collection methods, Tools and Techniques, Limitation of the Study etc.

CHAPTER 2 - Result and Analysis : Presentation of data, analysis of data and findings the study.

CHAPTER 3 -Summery and Conclusion

                                                      

                      BIBLIOGRAPHY:
Adhikari, Devraj,Dhrubalal (2017), " Business Research Method." Kathmandu: Asmita Publication.

Annual report of Rajshree saving and credit co-operative ltd, Biratnagar.

D.R. (2016), " Entrepreneurship and Enterprise Develpoment " Kathmandu: Asmita Books Publication
and Distributors Pvt Ltd.

Kiran Thapa (2017), " Foundations of financial markrts and Institutions ( 2nd edition ).
Kathmandu,Januka Books House Pvt Ltd.

Shrestha S.M.    (2014), " Act needs to be amended. Retrieved from Shahakari Khabar

website: http:// www,Sahakarikhabar.com

Thapa, K (2008) , " Fundaments of Investment" Kathmandu : Asmita Books Publishers and
Distributors Pvt Ltd.

Website accessed

http://nrb.org.np

http://www.myaccountingcourse.com

wikipedia (2019), wikipedia