CHAPTER ONE "INTRODUCTION"

1.1 Background of The Study

Nepal is an underdeveloped country. It needs to established different kinds of firms, industries and business

which are established on their own goal and purpose. The main goal of businesses have to earn profit or

return. However all the firm, industries and business have not established for profit. They also provide the

service to the public. Multipurpose cooperative organization have been established for providing many

different facilities to their member & also uplift their level of performance. Therefore, Manakamana

Multipurpose Cooperative Ltd, Hariwan-09, Sarlahi is also a kind of organization which provides the

employment opportunities & social welfare service too.

The objective of the Multipurpose co-operative organization are to provide loans to their

members on easy terms of interest, security and repayment. The slogan of co-operative is "All for Each

and Each for All". The main goal of the organization is to fulfil the financial needs of the members. They

promote mutual cooperation among the members.

Funds flow statement is an essential tool for financial analyzer. It explains the sources from which

additional fund i.e., working has been arrived and the uses to which the fund or working capital has been

employed. Funds Flow Statement is prepared on the basis of two balance sheet of subsequent date and

highlights the changes in the financial position of a concern.

Manakamana Multipurpose Co-Operative Ltd has also been established in 2056 B.S. under the co-operation act

2048. co-operative organization is such organization which is established by economically weak people. In

2062 under the co-operative act 2048 Manakamana Multipurpose cooperative Ltd was established and started to
perform as autonomous organization. It is located at Harion-11,Sarlahi. It has been providing service in Harion,

Lalbandi and Bagmati Municipality. Currently it has been conducting by Nine members of board of director and

it had six staff. The opening number of share holder was 41 and now it has come to 319 shareholder members.

It provides loan for different objectives. This Co-operative has a capable board of director who defines how to

manage the debt and equity capital of Co-operative.

Some contributions of MMCSL

 To provide loan at lowest interest rate.

 To help for social welfare

 To help members to increase their standard living
 To set up of subsidiary cottage and small scale of business
 To provide training &education of new technology of farming
 Marketing &Business

Objectives of Study

Funds Flow Statement explain the change in financial position. It helps to analyse the operational oppositional

and it also help to act as future guide. Some objective of Funds Flow Statement are given below:

 Funds Flow Statement helps to explain the change in financial position

 To analyse the operational position
 To help in proper allocation of sources
 To evaluate financial position
  To act as future guide

Rationale

In the contents of Nepal, the history of co-operative is not as long in its development. The first ladder of co-

operative in Nepal is 2010 B.S. which was organized, which was historical and significant. co-operative

development fund was established in 2017B.S. after the dissolution of co-operative organization act 2048

have been implement after dissolving public organization act 2041.

Manakamana Multipurpose Co-Operative Ltd has also been established in 2056 B.S. under the co-

operation act 2048. co-operative organization is such organization which is established by economically

weak people. according to the nature of activity the Nepalese cooperative can be divided in to the following

categories:

1. Consumer´s Co-operative
2. Producers Co-operative
3. Marketing Co-operative
4. Housing Co-operative
5. Multipurpose Co-operative
6. Saving & Credit Co-operative

Related Review
In this stage, I shall study the Articles, Journal, Thesis and related books etc which are related to my research

topic "Fund Flow Statement". I shall try to find information about fund flow statement of others cooperatives

and other financial organization and justify the research gap between my research and other researchers.

Methods

In this stage, firstly, I´ll define the research design on my research problem. I study about the organization and

provide my recommendation letter which is given me by Campus with politeness and ask some questions and

data like Balance Sheet and other financial report.

Limitation of The Study

This study will have some limitations. Basically the study is done for the partial fulfilment for Bachelor of

Business Studies (BBS). Due to the occurrence of unforeseen circumstance, every study is always accompanied

by some limitations. I try to eliminate the limitation of the study to some extent. But time constraints, financial

problem and lack of research experience are the primary limitation and other limitations are follows:

 Because of the limited time and resources the entire study is confined only to the Manakamana

Multipurpose Co-operative Ltd.

 There are many factors that affect funds flow statement. However, this study consider Balance Sheet

and statement of Depreciation.

 The study period covers only the latest three different fiscal year from 2070-2073.

Result & Finding

After finished chapter (C), I shall present on Table, Pie-chat and Graph the available data and analyse them as

suitable as possible. I take support to prepare the Table, Pie-chat and Graph from teacher, friends and other

persons.

Discussion and Conclusion

At last, I´ll give summary of entire study, Conclusion and Recommendation according to analysed data and

studied about Funds flow statement of MMCOL and submit the required copy of the annual report of MMCOL

to concern project work.