A Project Work Report

Submitted By:
Umanga Poudel
Symbol No: 700250175
T.U. Regd. No.: 7-2-25-939-2018

A Proposal Submitted To:

Nepal Commerce Campus
The Faculty of Management
Tribhuvan University
Kathmandu

In Partial Fulfillment of the Requirements for Degree of

BACHELOR OF BUSINESS STUDIES (BBS)
Kathmandu,Nepal
2022

TABLE OF CONTENT

 Introduction
 Statement of Problem
 Research Methodology
 Objective of Study
 Rationale of the Study
 Limitation of the Study
 Report Structure
Introduction

Financial analysis is the process of analyzing various items of financial statement of firm to
insure its comparative strength and weakness. It evaluates the bank past financial market
depends on its sound financial strengths. The major objectives of financial statement
analysis is to provide concerned information to short term creditors, to debenture holder
about capital structure, change in financial position to investors and shareholder about
dividend an earning, past and projected earnings and so on.
Common stock market are directly relate to the net profit of the firm. It is the part
of earnings which contribute to the immediate return received by investors and at the same
time it reduces the amount of earnings reinvested by the firm, which limits its potential
growth. It is distribution of a portion of company’s earnings, decide by its board of
directors, to a class of is shareholders.

It is generally believed that dividend plays a crucial role and determining market
price or the corporate share. Whereas stock prices can be affected by various economic
factors such as interest rate, economic growth, inflation and the strength of dollar. They
can be also affected by micro economic factors such as specific policies enacted by a
particular firm. Firms that are growing generally pay low or on common stock market and
mature firms that are no longer in a growth phase often pay high increasing common stock
on market of Sunrise Bank.

Statement of the problem

This research has highlighted the problem relating to the banking sector with respect to
Sunrise Bank Limited is a leading “A” class commercial bank licensed by Nepal Rastra
Bank .The bank is maintaining its position in the profitability and stability in the banking
sector but there are some problems like it can’t be predicted that these bank will be able to
maintain same profitability and stability in the tough competition .Thus, the management
of the bank should evaluate common stock market to prepare the sound financial policies.

The research seeks the weakness of Sunrise Bank Ltd with the help of common stock. So,
attempts are made shortly to answer the following questions:

 What is the relationship between earning per share, market price per share and
dividend per share of Sunrise Bank Ltd?
 What is the situation of stock market of Sunrise Bank ? is it safe or risky to invest in
the stock of Sunrise Bank ?
  What is state of EPS, DPS, PE ratio What is state of EPS, DPS, PE ratio,earning
yield ratio and dividend yield ratio of Sunrise Bank?

Research of Methodology
Research methodology helps to find out accuracy, validity and suitability. The justification
on the present study cannot be obtained without help of proper research methodology. For
the purpose of achieving the objectives of the study, applied methodology has been used.

Types of Research

The research has been based on the providing information of the SCO i.e. secondary
information from relevant sources of information and that information tries to analyze all
the facts, which will be collected for the aim of the study. Hence, the researcher will mainly
use analytical and descriptive type of research design.

Population and Sampling

A population is a complete enumeration of each and every unit of the universe as a

whole. It is relates to the total study of the material in detail. There are A class bank
Sunrise in Nepal but Sunrise Bank Limited is taken into consideration in sample using
judgment sampling.

Types of Data

Both primary and secondary sources of data will be collected in order to achieve the
real and actual results:

i) Primary Sources of Data

Primary data relevant to right study have been gathered through questionnaire and
observation of institution itself. Fifteen personnel SCO head office and branch will be
selected by personal judgment for the sources of primary data.

ii) Secondary Sources of Data

The major sources of secondary data for this study will be as follows:

a. Annual reports of the Sunrise Bank Limited.

b. Previous thesis and reports.
c. Unpublished official records.
d. Published an unpublished bulletins and reports of the Sunrise Bank Limited.
e. Reports published by Nepal Stock Exchange.
 f. Reports of Nepal Sunrise Bank Limited and Sunrise Bank financial statistics.
g. Journal and other publish an unpublished related document and reports for PG
Campus Library Biratnagar, Mahendra Multiple Campus Library, Dharan,
Janta Multiple Campus Library, Itahari etc.
h. Various internet websites related to Sunrise Bank Limited.
i. Other materials published in daily, weekly, monthly newspapers and magazines.
Data Collection Procedure

The data used in this study is primary and secondary nature. The study is based on
secondary data provided by Sunrise Bank Limited and other relevant source. The data are
collected from the balance sheet, profit and loss account, security board, Nepal Sunrise
Bank Limited and informal enquires from the Sunrise Bank personal.

Data Analysis Tools

Presentation an analysis of the collection data is the core part of the research work.
The collected raw data will be first presented in systematic manner in tabular form and are
then be analyzed by applying different financial and statistical tools to achieve the research
objectives.

Financial Tools

In this study financial tools will be use as ratio analysis. Ratio analysis is the
numerical relationship between any two variables of financial statements, which should
serve some meaningful purpose.

A)Standard Deviation

Standard deviation is a statistical measurement in finance that, when applied to the

annual rate of return of an investment, sheds light on the historical volatility of that
investment. The greater the standard deviation of a security, the greater the variance
between each price and the mean, which shows a larger price range.

The standard deviation is a statistic that measures the dispersion of a dataset

relative to its mean and is calculated as the square root of the variance. It is calculated as
the square root of variance by determining the variation between each data point relative
to the mean. If the data points are further from the mean, there is a higher deviation within
the data set; thus, the more spread out the data, the higher the standard deviation.

The formula for standard deviation is

 √ ∑ x2 −
( )
2
∑x
S.D. =
n n

B)Mean

The sum of all the data entries divided by the number of entries.

∑x
Mean ¿
N

c)Coefficient of Variation

The coefficient of variation denoted CV(or occasionally V) eliminates the unit of

measurement from the standard deviation of a series of number by dividing it by the mean
of this series of numbers.

Formally, if, for a series of N numbers, the standard deviation and the mean are denoted
respectively by S and M, the coefficient of variation is computed as:

S
Cv¿
M

Often the coefficient of variation is expressed as a percentage which corresponds to the

following formula for the coefficient of variation

S∗100
Cv¿
M

This last formula can be potentially misleading because, as we see later, the value of the
coefficient of variation can exceed unity and therefore would create percentages larger
than one hundred. Here we will use formula 1 and express CV as a ratio rather than a
percentage.

Objective of the study

The study focused on common stock market of selected commercial banks of Nepal. It
highlights the situation of common stock of commercial banks and its consequences. To
simplify the study only Sunrise Bank Ltd. Have been selected. The major objectives of this
studies are as follows:

 To analyzed the common stock market of Sunrise Bank Ltd.

 To analyzed the trend of common stock market .
 To analyzed the relationship of dividend with EPS, MPS and DPS.

Rationale of the study

Investment in the stock market is a risky proportion. It requires that the person should be
alert and conscious about his investment. People feel more risk in stock investment which
make frustration to invest on common stock and cannot be utilized their fund for
consumption and other purpose. The financial statements have been prepared on historical
cost basis except for the following material items in the statement of financial position.

 Derivative financial instruments are measured at fair value

 Financial instruments at fair value through profit or loss are measured at fair value
 Investment property is measured at fair value
 Liabilities for cash-settled share-based payment arrangements are measured at fair
value
 The liability for defined benefit obligations is recognized as the present value of the
defined benefit obligation less the net total of the plan assets, plus unrecognized
actuarial gains, less unrecognized past service cost and unrecognized actuarial.
 This research report is prepared for the partial fulfillment of the requirement for
the Degree of Bachelors of Business studies [BBS].
 Limitation of the Study
It is not comprehensive study. There are some limitations of study. Lack of experiences,
time, limited budget, up to ate information are the main limitation of the study. Apart from
this some limitation represented below:

 Only three years financial data are used as a representative sample of all operating
periods.
 This study is only confined to Sunrise Bank Limited.
 Limited financial and statistical tools are utilized.
 The study is being based on secondary data, collected from banks, financial
statement, publications, journals, so it may not be exact and hundred percent
genuine.

Report Structure

This study has been broadly divided into three chapters which are as follows:

Chapter 1: Introduction
The first chapter includes background of the study, profile of the organization
namely Sunrise Bank Limited, statement of problem, objective of the, study
rationale of the study, literature review, research methodology, limitation of the
study

Chapter 2: Result and Findings

This is the main part of research and it includes data presentation and major
finding. Various financial tools and techniques are used to analyze and interpret
the data.

Chapter 3: Discussion and Conclusion

This is the final chapter of the present study give summaries and conclusion of
the research and necessary recommendations for future improvement.

At the end of the study, bibliography and appendices are also incorporate.
 Bibliography

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Cheney, J.M & Moses (1992). Fundamental of investment, USA: West Publishing company.

J.H.Clemens (1963). Security analysis and portfolio management practice New Delhi: Hall of
India Pvt. Ltd.

Francis, J.C.(1992). Investment analysis and management. New York: NC Graw – Hill
publication.

Giri, N. (2005). Stock price behavior. An unpublished Bachelor’s Degree Project, submitted
to faculty of management, T.U.

Grolier incorporate (1984) principal of management finance. New York: Harper Collins
publisher.

Mahat, R.S(1981). Capital market, financial flows and industrial finance in Nepal.
Kathmandu: SajhaPrakashan

Pandey, p. (2000). Risk and return analysis of common stock investment. An unpublished
Bachelor’s Degree project submitted to Faculty of Management T.U.

Thapa, Kiran. (2011). Capital structures management. Kathmandu: Asmita Books and
Publishers and Distributers Pvt. Ltd.
.