“A STUDY ON LIQUIDITY ANALYSIS OF BAGAINCHA SAVINGS AND CREDIT CO-OPERATIVE LIMITED”
Project Work Reports
By:
Pokhara Multiple Campus
T.U., Regd. No.:
Campus Roll No.: 208
Submittal to:
Faculty Management
Tribhuvan University
Kathmandu, Nepal
In a fractional fulfillment of the necessities of “BACHELOR’SDEGREE” Business Studies (BBS)
Locality:
Pokhara
May-2019
Declaration
I hereby declare this project entitled work “A STUDY ON LIQUIDITY ANALYSIS OF BAGAINCHA SAVINGS AND CO-OPERATIVE LIMITED” is submitted to the Faculty Managements, Tribhuvan University, Kathmandu is an obvious & original piece of work under the supervision of Mr. Puspa Raj Paudel, a faculty affiliate- Pokhara Multiple Campus, Pokhara and been submitted in the partial fulfillments of requirements for the Bachelor’s Degree of Business Studies (BBS). This Project of work has not yet been succumbed to any other University or Institution towards getting an award of any Degree or Diploma.
______________
May-2019
Supervisor’s Recommendation
This project entitled work “A STUDY ON LIQUIDITY ANALYSIS OF BAGAINCHA SAVINGS AND CO-OPERATIVE LIMITED” is submitted by Tulasi Wagle- Pokhara Multiple Campus, Pokhara been prepared by the under my observance as per the actual procedure and format requirements that laid by the faculty management, Tribhuvan University, as a partial fulfillment of the requirements for the Bachelor’s Degree of Business Studies(BBS). I therefore, endorse this project work report for consistent evaluation.
_____________
Puspa Raj Paudel
May-2019
Endorsement
We hereby endorse project entitled work report on “A STUDY ON LIQUIDITY ANALYSIS OF BAGAINCHA SAVINGS AND CREDIT CO-OPERATIVE LIMITED” is submitted by Tulasi Wagle- Pokhara Multiple Campus, in partial fulfillment of requirements of the Bachelor’s Degree of Business Studies(BBS) for the spontaneous external assessment.
Signature: _ _ _ _ _ _ _ _ Signature: _ _ _ _ _ _ _ _
Mr. Deepak Prasad Ghimire Ms. Shishu Kala Parajuli
Chairman Campus Chief
Management Research Committee Date: May-2019
ACKNOWLEDGEMENT
I am hugely appreciative to my cherishable/great supervisor Mr. Puspa Raj Paudel for his reliable guidelines, enthusiasms, and opinions methodically throughout the period of this research. I would rather like to express thanks to all the lecturers, professors and library administrators of Pokhara Multiple Campus, who assisted me along with essential paper references, reading materials, and others during the whole period of this research. I also want to offer my pleasing thanks to entire staffs on Liquidity Analysis of Bagaincha Savings and Credit Co-operative limited for their kind dynamic supports and needed assets.
Similarly, the especial thanks are laid to all my friends, colleagues who actual aided me towards my works to finalize gaining success on each work even of family members whose affections and regular inspirations made it easy. I am duly responsible for any errors if occurs in this report.
I would prefer to assume any comments or suggestions if applicable on this report.
April-2019
TABLE OF CONTENTS:
Title Page……………………………………………………………………………. i
Declaration…………………………………………………………………………. ii
Supervisor’s Recommendation…………………………………………………. iii
Endorsement………………………………………………………………………. iv
Acknowledgement…………………………………………………………………v
Table of Contents………………………………………………………………...vi
List of Tables……………………………………………………………………vii
List of Figures…………………………………………………………………viii
Abbreviations…………………………………………………………………. ix
CHAPTER- I: INTRODUCTIONS………………………………….1
Backgrounds of the Study………………………….................1
Profiles of Organization……………………………………....2
Objectives of the Study……………………………................2
Rationales…………………………………………................3
Reviews of Literature……………………………..................3
Methods of the Study……………………………………....14
Limitations of the Study……………………………………15
CHAPTER- II: RESULTS AND ANALYSIS……………………16
Data Presentations…………………………………………11
Analysis of Results………………………………………...25
Findings……………………………………………………26
CHAPTER- III: SUMMARY AND CONCLUSIONS…………...29
Summary…………………………………………………...30
Conclusions………………………………………………...30
BIBLIOGRAPHY……………………………………………….32
APPENDICES……………………………………………………
LIST OF TABLES:
Table Page
2.1 Current Ratio 17
2.2 Quick Ratio 19
2.3 Cash to Current Assets Ratio 21
2.4 Cash to Current Liabilities 22
2.5 Prepaid Expenses to Current Assets Ratio 23
2.6 Networking Capital of BSCCL. 25
LIST OF FIGURES:
Figure Page
2.1 Current Ratio 18
2.2 Quick Ratio 19
2.3 Cash to Current Assets Ratio 21
2.4 Cash to Current Liabilities 23
2.5 Prepaid Expense to Current Assets Ratio 24
2.5 Networking Capital of BSCCL 19
LIST OF ABBREVIATIONS
(Ascending Order)
BBS: Bachelor of Business Studies
BSCCL: Bagaincha Savings and Credit Co-operative Limited
FY: Fiscal Year
No: Number
%: Percentage
Regd: Registration
T.U.: Tribhuvan University
CHAPTER I
INTRODUCTION
Background of the Study
A ratio analysis is a quantifiable analysis of information contained in a company’s financial statements. Ratio analysis is based on line items in financial statements like the balance sheet, income statement, and cash flow statement; the ratios of one item- to another item or combinations are then calculated. Ratio analysis is used to evaluate various aspects of company’s operating and financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time is studied to check whether they are improving or deteriorating. Ratios are also compared across different companies in the same sectors to see how they stack up, and to get an idea of comparative valuations. Ratio analysis is a corner stone of fundamental analysis. While there are numerous financial ratios, most investors are familiar with a few key ratios, particularly the ones that are relatively easy to calculate. Some of those ratios include the current ratio, return on equity, the debt-equity ratio, the dividend payout ratio and the prices/earnings (P/E) ratio.
The history of Co-operative society is very old, but it can’t be authoritatively said and where this form of business organization originated. But though the modern Co-operative movement was started in England as “Rockdale Society of Equitable Pioneers” with the objectives of eliminating middlemen in business. The business organization was very successful and impulsively the idea gradually spread to Europe, America and other countries around the world. In the context of Nepal, despite established in 2010 Co-operative act was incorporated in incorporated 2016 B.S. which was Co-operative Act 2016
Especially Co-operative societies have been established for the middle class and economically weak people and to remove defects of capitalizing for laser conceptacle and to have been elimination over these people. It has been eliminating the distance between economically rich and weak people. It reflects to work together based on quality for common benefits, motives and unity motives to develop the self-dependency through Co-operative with the feelings of each for all for each.
Profile of the Organization
After the revolution in 2068 among between rational personalities like teachers, politicians and socialists of Pokhara-5 Parsyang realized about founding & its establishment for spreading welfare throughout the society. Therefore on 6th of Ashwin it was found as well as established duly since then with the name of “Bagaincha Savings and Co-operative Limited with the certain norms, assumptions, concepts, and aim targets. It is situated in Pokhara-5 Parsyang, Kaski. Meantime, despite there are many of commercial banks, they are unable to execute any works at that area. So Bagaincha Savings and Co-operative Limited carried out certain assumption /authority to provide the needed criteria of service for all authorized people. This Co-operative has been established to promptly help people to run smoothly their small businesses who are highly dependent in small scale of business. At the inception, with 105 members in 2068 and after all it has been progressively rapidly ascended with 724 where out of them are 394 males and 330 females registered members. The total capital till the current days mounted top to One Crore Seventy-Three Lakhs Seventy-Eight Thousand Eight Hundred, whereas the entire profit till now is Rs. 74,28,957.
Bagaincha Savings and Credit Co-operative Limited is always providing its regular services by the aid of 6 staffs. Its main agendas are about to provide sooth service where loan with lower interest rate also to enhance the living standard of shareholders and societies as well.
It accepts loans of diverse account from unproductive ways and invest in productive ways, so it can also be called as a heart of society. Even it is not a profit-oriented organization but though it earns some profit and distribute equally bonus for the members.
Objective of the Study
The main objective is to identify the financial status of the Co-operative with the help of the financial statements from 2070-2075.
To analyze the Current Ratio
To analyze the Quick Ratio
To analyze the Cash Ratio
Rationale
The research work will be supplementary unit to measure the ratio analysis of Bagaincha Savings and Credit Co-operative Limited. It is also aimed to measure the efficiency of the funds used and evaluate the financial resources. This research work will study the financial aspects of the Co-operative in micro level. There is other some importance of the research which are follows below.
The required data and information concerns to the financial can be acquired and studies by stakeholders.
It helps to decide and formulate the policy regarding the organization profits.
This study will be helpful to everyone from every aspect. The businessmen, taxpayers, donor parties and central government can be beneficial for this study.
Review of Literature
A literature review is the both summary and explanation of the complete and current state of knowledge on ratio analysis found in academic books and journals articles. Literature review refers to the documentation of the comprehensive review of the published works from the secondary sources of information. Review of the literature is an essential part of research- it is the way to discover what other research in our problem has uncovered. Thus, the task in the literature review is to learn as much as one can from the efforts and works of others. This works however cannot be haphazard if it is to be efficient. Like most aspect of research, it needs thought and planning. So, the review of their ideas is important to know what kind of gap exists in the literature.
Conceptual Review
This section presents the theoretical concept of financial analysis meaning and definition of cooperative, principles of cooperative, historical background, concept of loan allocation etcetera have been included under the conceptual review.
Meaning and Definition of Cooperative (Derivation)
The word cooperative has pioneeringly been derived from Latin word co-operative which means working together. It is also a system of people voluntarily working together in the terms
of to prevent economical exploitation/obstruction by others. The main motto of the cooperative is each for all & all for each.
Cooperative is associated with human in all walks of life. It may be compared with the company of birds and insects. It teaches us disciplinary life and cooperative among each other. A cooperative organization is more guided by the services. It renders the member social benefit and monetary profits. It is completely different from other business organization. Tamper, Bhide (1989) has defined cooperative as a happy means between the force of extreme individual of one hand and socialism and communism. It stands for individual rights but corrupt by the consideration of justice, equity and fair dealing between men & women also it aims to prevent the exploitation of weakness of stronger party.
The definition given by International Labor Organization(ILO) covered most of the principle of cooperation. Co-operative society is an association of the economically weak, who voluntarily associates based on equal rights and responsibilities, transfer to an under taking one or several of their functions, corresponding to one or other economic needs which are common to them all but which each of them is unable to fully satisfy by his/her own individual efforts and manage and use such under taking in mutual collaboration to their common materials and moral advantage (Shrestha, 1974)
Hence the above given discussions conclude that co-operative is form of organization because weak and powerless people were the actual users in certain goals and services, voluntary associates together as human beings, based on the equality for the promotion of their economic interest by honest means. Co-operation is the super philosophy of life, besides of a form of business organization.
Principle of Co-operative
Principle of co-operative to the guidelines to give the concrete form to the norms and values of cooperative organization. In other words, cooperatives are the set of rules and regulate and govern the activities of cooperative enterprise. The principles of cooperative are sociability and mutual aids the aids the progress of organic life the improvement of the organism and the strengthening of the species, which become utterly incomprehensible.
Cooperative operates according to seven basis principles. six were drafted by the international cooperative Alliance (ICA) in 1966, based on guidelines written by the founders of the modern
cooperative movement in England in 1844.Due to rapid changes in the economy of the world, the need for review of the principle of cooperative was increasingly felt. In 1963, the international Cooperative Alliance had reviewed the existing principle. In 1995 September, the ICA General Committee Meeting enunciated the following as the principles of cooperative (Cooperative Training Center,2062, p.30) to guide cooperative Organizations into the 21st century.
Those principles have been commonly adopted all over the world. In the Nepalese context from the revised from now we have nine principles of the cooperative enunciated by the ICA General Committee Meeting in 1995 are as follows (ICA, 1995).
The cooperative principle is a principle of conversation that was proposed by Grice 1975, stating that participants expect that each will make a “conversational contribution such as is required, at the stage which it occurs, by the accepted purpose or direction of the talk exchange
Principles of cooperatives refer to the guidelines to give the concrete from to the norms and values of cooperative organization. In other words, cooperative principle are the set of rules and regulations to regulate and govern the activates of cooperative enterprises. The principles of the cooperative are sociability, and mutual aid the progress of the organic life the improvement of the organism and the strengthening of the species, which become utterly incomprehensible.
Voluntary and Open Membership: Cooperatives are voluntary organization; open to all the people able to use its services and willing to accept the responsibilities of the membership, without gender, social, racial, political, or religious discrimination. Everybody has the chance for free and exit to the members, which is set by cooperative acts.
Democratic Management: Cooperatives are democratic organizations controlled by their members those who buy the goods or use the services of the cooperative who actively participate in setting policies and making decisions. To control and management of cooperative, organization is preferment by the members through democratic system. All the members are eligible to participate in the policy making and decision making the cooperative organization.
Economic Participation by Members: Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with cooperative rather than on the capital
invested. There is a legal and equal economic participation of the members in this organization. They posses a common capital. A cooperative organization makes provision for reserve fund, dividend fund, patronage dividend fund, employees bonus fund, cooperative education fund and loss compensation fund.
Autonomous and Freedom: In the thirty years since the passage of the 1966 Cooperative Principles, numerous third world countries used cooperatives as an intentional part of their social and economic development strategies. Where there are many instances of successful developments through cooperatives, the overall record is mixed at best. Independent and an organization controlled by its members. It is free from direct control of government and it does not make any agreement with the government or any other parties losing its autonomy democratic control.
Cooperation among Cooperative: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together local, national, regional, and international structures. Cooperation among Cooperative is necessary for the smooth operation and all-round progress of the cooperative movement. Mutual understanding and independence among cooperatives help to the process of development of cooperative. Cooperation develops closeness.
Self-help and Mutual help: Cooperatives are not trade unions, charity or friendly societies. It is not a business but a combination of both business and social service. Cooperative evokes loyalty, sincerity and fellow feeling. The essence of cooperation is self-help unity avoidance of competition and elimination of middlemen of all kinds in distribution and production. Cooperative works on the motto “Each for all and all for each” The feeling and the activities of the cooperatives help us to stand on own feet and help to others also get help from others.
Education, Training and Information: Education continues to be a priority of the cooperative movement in the new statement of identity. The background paper on the principle emphasizes that cooperative education is more than advertising product or distributing information. It is critical to the effective and informed participation of
members which lie at the core of the cooperative definition. It means engaging the minds of members, elected leaders, managers, and employees to comprehend fully complexity and richness of cooperative thought and action. The rewritten principle also highlights the importance of educating the young and opinion leaders about the nature and benefits of cooperation. If cooperatives are to be a part of the solution to many of the world’s problems, people must be not only aware of the concept; they must appreciate it and be willing to participate in it. Such active involvement will not occur if people do not understand cooperative enterprise.
Types of Co-operative Societies
Cooperative has been considered as a life style under which people work together for common economic & human interest. Cooperative has different types as per its objects and nature of work. Some of the cooperatives have been formed to help consumers and others have been established to help producers. There are some societies which help the farmers in providing credits for the purchase of fertilizers and seeds too. And some help them in the promotion of trade. Cooperative credit societies are further classified into agricultural credit societies and non-agricultural credit societies. Such are follows.
Consumer’s Cooperative Societies
Consumers Cooperative are formed by the consumers to obtain their daily requirements at reasonable prices. Search age society buys goods directly from manufacturers and wholesalers to eliminate the prophets of middlemen. Those societies protect lower and middle-class people from the exploitation of profit hungry businessmen. The prophets of the society are distributed among members in the ratio of purchases made by them during the year. Consumers Cooperative or Cooperative stores are working mainly in urban area in India. Super Bazar working under the control of government is an example of consumers cooperative society.
Producers Cooperative:
Producers or industrial cooperatives voluntary associations small producers and politicians who join hands to face competition and increase production. These societies are of two types.
Industrial service cooperatives:
In this type, the producers work independently and sell their industrial output to the Co-operative Society. The society undertakes to supply raw materials, tools and machinery to the members. The output of members is marketed by the society.
Manufacturing Cooperatives:
In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw materials and equipment to every member. The members produce goods at the common place for in their houses. The society sells the output in the market and its profits are distributed among the members.
Marketing Cooperatives:
These are voluntary associations of independent producers who want to sell their output at remunerative prices. The output of different members is pulled and salt to a centralized agency to eliminate middlemen. The sale proceeds are distributed among the members in the ratio of the outputs. As Central Sales Agency, the society may also perform important marketing functions such as processing, grading and packaging the output, advertising and exporting products, warehousing and transportation etc., marketing societies are set up generally by farmers, artisans, and small producers who you find it difficult to face competition in the market and to perform necessary in marketing functions individually. The national agricultural Cooperative marketing federation (NAFED)is an example of marketing Cooperative in India.
Cooperative Farming Societies
These are voluntary associations of Nepal farmers who join to obtain the economies of large scale farming. India farmers are economically weak and their land holdings small. In their individual capacity, they are unable to use tools, seeds, fertilizers etc. They pool their lands and farming collectively with the help of modern technology to maximum agricultural output.
Housing Cooperatives:
These societies are formed by low and middle-income group people in urban areas to have a house of their own. Housing co-operatives are of different types. Some societies acquire land and give the plots to the members for constructing their own houses. They also arrange loans from Financial Institutions and Government Agencies. Other
societies themselves construct houses and allot them to the members who make payment in installments.
Credit Cooperatives:
These societies are formed by poor people to provide financial help and to develop the habit of savings among members. They help to protect members from exploitation of money lenders who charge exorbitant interest from borrowers. Credit cooperative are found in both urban and rural areas. In rural areas, agricultural credit societies provide loans to members only for agricultural activities. In urban areas,
nonagricultural societies for banks offer credit facilities to the members for household needs.
In India, cooperative societies have been formed. National Cooperative Consumers Federation, National Federation of cooperative sugar factories, National Agricultural Cooperative Marketing Federation, National Cooperative Housing Federation, all India state cooperative banks Federation are some examples.
History and Development of Co-operative in Nepal:
There is long tradition of time in memorial in helping each other in Nepali society irrespective of ethnicity. The tradition of informal cooperation includes Guthi, Pharma or Parima and Dhikuri, as well as Mankakhala. The rural people of Nepal understood the motto of living together which can be found in the stanzas of Vedas. The area of cooperation is holy religious and pious function. For example, Hindu boy bags religious AIMS at the last of holy thread putting ceremony. The community provide scene alms of rice. There is tradition of giving help of rice, vegetables, and mustard oil in the marriage at house in rural Nepal. People go in bridegroom for procession to help in preparing food and help in constructing new rural huts with three labors of one or two days from its family. If you have each other for the funeral function at their neighbor’s house age it is necessary. (Thakuri,2010).
DHARMA BHAKARI means a religious store, which is a kind of grain cooperative, each family in the village puts aside certain quantities of grain after the end in the harvest season. At the time of scarcity, a quality of grains is distributed on advance to farmers. Loans is advance from the gains cooperative only to the villagers who have contributed to the cooperative and agree to pay the loan in king with interest (Sharma,2008).
DHIKURI is an institution operated by the Thakali Community of Nepal through time immemorial to provide credit to the financial upliftment. It is formed by a group of people with the specific word the specific word it is one of the important and popular forms of cooperation in Nepal. This system of cooperative is also utilized in all part of the country. In this system, the members prepare the rules and regulation themselves. Every member requires contributing certain amount of capital towards its fund. The fund is to be contributed based on financial requirement of the members(Marasini2012).
IN this way, the concept of cooperative in Nepal is not a new one. It is familiar from these days when people had the knowledge to live together in a society or community. But we cannot ascertain the actual date when the cooperative movement was started in Nepal. Many types of informal cooperative were running different parts of Nepal but those in the position to take formal slope of cooperative. If we turn over the history of cooperative movement of Nepal, the organized history can be traced after the establishment of cooperative development in year 1953 under the Ministry of Agriculture for the promotion, supervision, and evaluation of cooperative societies. In the beginning, cooperative movement was greed up with the establishment of 13 credit cooperative societies in 1956-60 for the rehabilitation program for the flood-stricken people in Rapti Dem Besi under the active support of United States Agency for International Development(USAID) on the experimental basis. People poured from different districts and tried to settle there. The new dwellers were there with some clothing and few days food stuff. Without getting sufficient help many people returned to their previous dwelling areas. Thus, the project management felt the need of an institution to supply consumer goods and provide credit facilities for production. Due to this urgency the government of Nepal issued an order to register cooperative communities in Chitwan(Thakuri,2010)
Review of Previous Works
Sapkota (2014) Hindi study on fund mobilizing policy of Standard Chartered Bank Nepal Limited(BSCCL), has found that liquidity position of BSCCL was not satisfactory. Loans and advances, cash, & bank balance ratio seemed too with than that of NBBL and HBL. Investment on share & debenture and interest earning power on total working fund, net profits seemed advances with deposits sims positive and the relation of net profit with outside assets seemed positive. At last, Sapkota concluded that in overall condition
BSCCL seemed in satisfactory position in in comparison to NBBL & HBL. Since, BSCCL used to provide less loan & advances in comparison to its total deposits, BSCCL Sapkota has strongly recommended following a liberal lending policy so that it more percentage of deposits can be analysis showed investment and loans & advances as a significant factor his effects the net profit of the bank. Subsequently, skillful administration is the must for these because negligence may become I'm a reason for liquidity crisis.
Kyariaki & Constantin (2008) in their studies of measurement of bank performance in in Greece, they had measured the financial performance of commercial banks and cooperative banks of Greece using same and different financial ratio for each type of banks. They had selected eleven financial ratios for each type of bank commercial and cooperative example of such ratios are loan / total assets it, return on equity, return on asset equity/deposits, equity/ total asset etc.
Eljelly (2015) in his study empirically examined the relationship between profitability and liquidity as measured by current ratio and cash gap on a sample of 929 Joint stock companies in in Saudi Arabia. Using correlation and regression analysis, Eljelly found significant negative relationship between the firm’s profitability and its liquidity level, as measured by current ratio. This relationship is more pronounced for or firms with high current ratios and long cash conversion cycles. At the industry level, however he found that the cash conversion cycle or the cash gap is of more importance as a measure of liquidity than current ratio that affects profitability. The firm size variable was also found to have significant effect on profitability at the industry level.
Chidabram R.M and Alamelu (2000) in their studies entitled, “Profitability in Banksia matters of survival”, Pointed out the problem of declining profit margins in the Indian Public-Sector Banks as compared to their private sector counterparts. It was observed that despite similar social obligations; almost all the private sector banks have been registering both - high profits and high growth rate with respect to deposits, advances and reserves as compared to the public-sector banks. Regional orientation, better customer services proper monitoring of advances and appropriate marketing strategies are secrets behind the success of public of the private sector banks.
Das A. (1997) in his paper on, “Technical Allocation and Skill Efficiency of the Public-Sector Banks in India". The study found that there is decline in overall efficiency due to fall in technical efficiency which was not offset by an improvement in allocative efficiency. However, it is pointed out that the deterioration in technical efficiency was mainly on account of few nationalized banks.
Swank, (2012) in their study entitled, “Indian Banking since Independence”, studied the growth of Banking in India covering the period from 1966- 1987. Analysis revealed that structure of the banking system changed considerable over the years. It was further pointed out that the quantitative growth of the public-sector banks was no doubt out significant in some of the areas but qualitative improvement, by and large lacked in desired standards. Despite substantial increase in deposit mobilization, their shares in national income continued to be very low. It was concluded that it public sector banks were neither guided by the consideration of returns nor they were very much concerned it with developmental strategies.
Barth (2002) carried out a study on " Bank safety and soundness and structure of bank supervision." A cross country analysis. They have raised two central question about the structure of bank supervision. They are whether Central Bank supervise banks and whether to have multiple supervisors. They have used data for 70 countries across developed emerging and transition economics to estimate statistical connections between banking performance, activities, legal environments, banking market structure and micro economic conditions. They found that where Central Banks supervise banks, bank tends to have more non-performing loans. Countries with the multiple supervisors have lower capital ratios and higher liquidity risk. They also found that conclusions from non-transition economies minute necessary apply to transition economies. They found that where is central banks supervise banks, banks tend to have more non-performing loans. Countries with multiple supervisors have lower capital ratio and higher liquidity risk. They found that conclusions from non-transition economies may not necessarily apply to transition economies.
Regmi M. (2015) has conducted study on” A study on Profitability Analysis of Nepal Investment Bank Limited". Her major objectives are to find out the general deposit and
investment policy of Nepal Bank Limited” its composition, liquidity, asset management ratio analysis of local deposit, loans etc. and trend analysis of different variables related to investment.
Deb and Kalpada (1998) in their studies entitled,” Indian Banking since Independence”, studied the growth of banking in India covering the period from 1966-1987. The analysis revealed that the structure of the banking system changed considerable over the years. It was further pointed out that the quantitative growth of the public sector. . It was further pointed out that the quantitative growth of the public-sector banks was no doubt out significant in some of the areas but qualitative improvement, by and large lacked in desired standards. Despite substantial increase in deposit mobilization, their shares in national income continued to be very low. It was concluded that it public sector banks were neither guided by the consideration of returns nor they were very much concerned it with developmental strategies.
Poudel, P. (2015) has conducted report on “A study on Profitability Analysis of Gauri Shankar Co-operative Limited”. His finding includes that association had invested most of its fund in current unnecessarily position is not satisfactory having unnecessary find accumulated in the current assets, which the association is not able to manage. He has also concluded that capital structure of the association is not sound, there is heave debt capital as compared to ownership capital.
Gilbert and Vaughan (2004) examines the potential contribution to bank supervision by a model designed to predict which banks will have their supervisory rating downgraded in future periods. This paper compares the ability of two models to predict downgrades of supervisory rating to problem status the board staff model, which was estimated to predict failures and a model estimated to predict downgrades of supervisory ratings. They find that both models do about as well as predicting downgrades of supervisory rating for the early 1990’s. Overtime however the ability of the downgrades model to predict downgrades improve relative to that of model estimated to predict failure. This pattern reflects the value of using a model for surveillance that can be the value of using a model for surveillance that can be re-estimated frequently. They conclude that the downgrades model may prove to be useful supplement to the board’s model may prove estimating
failures. During periods when most banks are healthy but that the down grade model should not be considered a replacement for the current surveillance framework.
Research Methodology
This study intense relation with profit of the organization, dividend distributed by the co-operative, number of shareholders, total assets, total liabilities etc. Co-operative in regarding the objectives to analyze examine and interpret about the different types of ratio. The research methodology includes research design, data collection procedures and research variable and tools use. The following step provides useful procedural guidelines so far as research methodology is concerned.
Research Design
A research is a framework or plan for the activities to be undertaken during study. The study is concerned single unit, so this will be followed the case study research design. Under the case study research design, descriptive research approach will be applied.
Sources and Nature of Data
A research will be based on the mainly secondary sources. However, primary data will be obtained as research requirement. The secondary data will be gathered from annual reports, published documents, meeting minute of the board and website. Moreover, other necessary data and information can be collected from the newspapers, related publication and websites.
Population and Sample
The objective of the study is to find the total loan invested in different types of sector. Out of them Bagaincha Savings and Co-operative Limited is taken as an example. I would like to select this co-operative because no any researcher has done any research on it and this organization is related to agriculture and earn maximum profit. The organization is for the research works. Convenience sampling method will be used.
Limitation of the Study
This study particularly involves the financial aspects of Bagaincha Savings and Credit Co-operative Limited. It is also trying to examine overall performance in terms of revenue collections, allocation and utilization. So, the limitations of the study are:
This study is only concentrated to the ratio.
It fails to study about the deposit collection, interest rate provided by the co-operative and other facility provided by the organization which also shows the overall performance of the organization
This study is analyzed the data of 5 years from fiscal year 2070 / 71 to 2074/75 B.S.
Time and cost constraints also short to the area of the study.
CHAPTER II
RESULTS AND ANALYSIS
This chapter deals with presentation and analysis of data collected from different sources and component. The main purpose of this chapter is to convert all the raw data into understandable form. It is the process of connecting, organizing, summarizing, tabulating and presenting data into do various charts, table and other forms. Here the data collected add from various sources have been analyzed to meet the various dimensions of the problems of study and major findings of the study are presented systematically.
2.1 Data Presentation
Mainly, the data for this research study is based on the annual report, websites of Bank. The data collected from different sources has been refined and documented in excel tables which are our further processed to analyze and draw a conclusion at the findings on financial condition of BSCCL.
2.1.1 Analysis of Liquidity Position by Using Liquidity Ratio
In financial analysis, a ratio is used as an index or yardstick for evaluating the financial position and performance of an enterprise. Generally, ratio can be classified into the following major groups functionally; liquidity ratio, leverage ratio, turnover ratio and profitability ratio. Among this ratio researchers select liquidity ratio for financial analysis.
Liquidity ratios are the ratios that provide the quick measure of the liquidity position on the ability of the firm to meet its short-term obligation. In other words, liquidity ratio is the indicator of short term solvency or financial strength off the firm. The most frequently used in these categories is current it and the quick ratios.
A. Current Ratio
The current ratio is balance-sheet financial performance measure of company liquidity. The current ratio indicates a company’s ability to meet short-term debt obligations. The current ratio measures whether a firm has enough resources to pay its debt over the next 12 months or not. Potential creditors use this ratio in determining whether to make short term loans or not. The current ratio can also give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash.
Calculating (Formula)
The current ratio is calculated by dividing current assets by current liabilities: Current Assets
Or, Current Ratio ――――――
Current Liabilities
CA= Total Assets—Investment — Fixed Assets
CL= Total Liabilities-- Total Liabilities—Non-Bearing A/C’s
In the present study, a current asset includes all those assets which can be converted into cash in the normal course of usual business not exceeding a period of one year. Current Assistor BSCCL comprise cash balance, balance with banks, money at call and short notice, advance and bill purchase and other assets. Likewise, current liabilities include all the obligations maturing within a year which are deposited, bill payable and other liabilities. The current ratio of BSCCL for the study period is shown below.
Table 2.1
Current Ratios
___________________________________________________________________________
Fiscal Year Current Asset Current Liabilities Current Ratio (Times)
___________________________________________________________________________
2070/071 4908241.97 12862149.48 0.38
2071/072 6205377.65 17249769.00 0.36
2072/073 3736226.00 15549459.23 0.24
2073/074 5360003.26 21501336.83 0.25
2074/075 3863149.83 33216099.81 0.12
Source: Annual Reports of BSCCL.
As a convention rule, current ratio of 2:1current assets twice of current liabilities or more is a more satisfactory. The current ratio of BSCCL is fluctuating situation. It is maximum (i.e.24.83) in the second year among those five years. During the study period last year also 2074/075 is able time the stand and i.e. 10,01 times. All other year are also above the standard, current ratio
of 1or less are typically considered very low and indicate financial difficulties. But all those five years are performing well and highly liquid stock and quality debtors.
Figure:2.1: Trend line showing current ratio
Table and figure 2.1 shows the current ratio of the Bagaincha saving and credit co-operative limited from FY2070/071 to 2074/075.The current ratio of the co-operative is in decreasing order in each year. The current ratio of the co-operative in FY2070/071 is 0.38 which is very less ratio as compare to standard rate. The ratio is slightly decreases in FY2071/072. Similarly, the ratio is again decreases in FY2072/073 which 0.24. But it slightly increases in FY2073/074 which is 0.25. The ratio is highly decreases in FY 2074/075 which is 0.12 times. Analyzing the overall performance of the co-operative the current ratio of the co-operative is below the standard rate which is below the 2:1. So it can be analyzed that the co-operative is not performing well.
Quick Ratio
The term “Acid-test ratio” is also known as quick ratio. The most basis definition of acid-test ratio is that, “it measures current (short term) liquidity and position of the company”. To do the analysis accountants weight current assets of the company against the current liabilities which result in the ratio that highlights the liquidity of the company.
The formula for the acid-test ratio is:
Quick Ratio = (Current Assets – Prepaid Expenses)/ Current Liabilities.
Or, Quick Ratio= Quick Assets
Current Liabilities’
Quick Assets=Current Assets-inventory -prepaid expenses.
This concept is important as if the company’s financial statements (income statement, balance sheet) get through the analysis of the acid -test ratio, then the short-term debts can be paid by the company. The quick ratio of BSCCL for the study period is shown below.
Table:2.2
Quick Ratios
__________________________________________________________________________
Fiscal Year Current Assets Current Liabilities Current Ratio (Times)
(Rs) (Rs)
___________________________________________________________________________
2070/071 4807679 12862149.48 0.37
2071/072 6075372 17249769.00 0.35
2072/073 3596953 15549459.23 0.23
2073/074 5214394 21501336.83 0.24
2074/075 3680539 33216099.81 0.11
___________________________________________________________________
Source: Annual Reports of BSCCL.
Figure 2.2: Bar diagram showing Quick Ratio
Table and figure 2.2shows the quick ratio of the co-operative from the FY2070/071 to 2074/075. The quick ratio of the co-operative is 0.37. The quick ratio of the co-operative is also decreasing order. The quick ratio is 0.35 in FY2071/072. Similarly, the ratio is decreasing in FY2072/073 but in 2073/074 the current ratio of the co-operative is slightly increases by0.1 which is 0.24. the current ratio of the co-operative is highly decreases which 0.11. Analyzing the overall performance of the co-operative the quick ratio of the co-operative is also below the standard rate1:1. It means the co-operative is not performing well in compare to current ratio and quick ratio.
Cash Ratio
Cash ratio (also called cash asset ratio) is the ratio of a company’s cash and cash equivalent assets to its total liabilities. Cash ratio is a refinement of quick ratio and indicates the extent to which readily available funds can pay off current liabilities. Potential creditors use this ratio as a measure of a company’s liquidity and how easily it can service debt and cover short-term liabilities. Cash ratio is the most stringent and conservation of the three liquidity ratios (current, quick and cash ratio). It only looks at the company’s most liquid short-term assets- cash and cash equivalents- which can be most easily used to pay off current obligations.
Calculation(formula)
Cash ratio is calculated by dividing absolute liquid assets by current liabilities:
Cash ratio =Cash and cash equivalents/current Liabilities
Cash to Current Assets Ratio
Cash is the most liquid assets because it is readily available, and the firm can use it at any time. Cash to current assets ratio shows how much part of current assets in cash. This ratio is calculated by using the following formula.
Cash
Cash to current Assets Ratio= —―—―—
Current Assets
An organization should have the cash balance to meet its commitments otherwise it should have enough current assets (other than cash) that give a promise of cash to come. Cash to Current assets ratio of BSCCL for the Study Period is shown below.
Table 2.3
Cash to Current Assets Ratio:
___________________________________________________________________________
Fiscal Year Cash(Rs) Current Assets Ratio In (%)
(Rs)
___________________________________________________________________________
2070/071 6136.54 12862149.48 0.05
2071/072 4077.43 17249769.00 0.02
2072/073 18765.02 15549459.23 0.12
2073/074 20394.74 21501336.83 0.09
2074/075 2522.13 33216099.81 0.01
___________________________________________________________________
Source: Annual Reports of BSCCL.
Figure:2.3: pie chart showing cash to current assets ratio
The ratios of different year are in fluctuating situation. In FY 2070/071 the cash to current ratio is 0.05 and again it highly decreases in FY 2071/072 which is 0.02. But the ratio is highly increases in FY 2072/073 which is 0.12% of total current assets. The ratio is again decrease inFY2073/074 which is 0.09%of the total current assets. Similarly, the cash to current ratio of the current ratio of the co-operative is highly decreases in FY2074/075 which is 0.01, the lowest cash to current ratio during the five-fiscal year. Analyzing the cash to current ratio, the co-operative does not hold high amount of cash in the vault as current assets.
Cash to Current Liabilities Ratio
Since be current liabilities are to be paid within an accounting cycle, normally of a year and cash is most liquid assets. This ratio shows how much part of current liabilities cash meet by cash immediately. This ratio computed by using the formula.
Cash
Cash to current Liabilities ratio = ―—―—―
Current Liabilities
The cash to current liabilities ratio of BSCCL, during the study period is shown in table.
Table 2.4
Cash to current liabilities of BSCCL
___________________________________________________________________________
Fiscal Year Cash(Rs) Current Liabilities Ratio In (%)
(Rs)
___________________________________________________________________________
2070/071 6136.54 12862149.48 0.048
2071/072 4077.43 17249769.00 0.024
2072/073 18765.02 15549459.23 0.121
2073/074 20394.74 21501336.83 0.095
2074/075 2522.13 33216099.81 0.008
___________________________________________________________________
Source: Annual Reports of BSCCL.
Figure: 2.4: Trend line showing cash to current liabilities ratio.
Table and figure 2.4shows the cash to current liabilities of the co-operative from FY 2070/071 to 2074/075. The ratio is slightly decrease in FY2071/072 but it highly increases in FY2072/073. Similarly, the ratio is slightly decreases in FY 2073/074 which high liability than its assets. The obligation or payable of the co-operative is higher than the receivable or assets.
c) Prepaid Expenses
A prepaid expense is an expenditure paid for in one accounting period, but for which the underlying asset will not be consumed until a future period. When the asset is eventually consumed, it is charged to expense. If consumed over multiple periods, there may be a series of corresponding charges to expenses. A prepaid expense is carried on the balance sheet of an organization as a current asset until it is consumed. The reason for current asset designation is that most prepaid assets are consumed within a few months of their initial recordation. If a prepaid expense were like not to be consumed within the next year, it would instead be classified on the balance sheet as a long-term asset.
Table 2.5
Prepaid to Current Assets
___________________________________________________________________________
Fiscal Year Prepaid Exp. Current Assets Ratio In (%)
(Rs) (Rs)
___________________________________________________________________________
2070/071 100563.34 12862149.48 0.78
2071/072 130006.10 17249769.00 0.75
2072/073 139273.26 15549459.23 0.90
2073/074 145609.59 21501336.83 0.68
2074/075 182610.74 33216099.81 0.55
___________________________________________________________________________
Source: Annual Reports of BSCCL.
Figure 2.5: Bar diagram showing prepaid expense to the current assets
Table and Figure 2.5 shows the prepaid expenses to the ratio from FY 2070/071 to 2074/075. The current ratio is in fluctuating situation. The ratio is 0.78 in FY 2070/071, but it slightly decreases in FY 2071/072. Similarly, the ratio is increased in FY 2072/073. The ratio is highly decreased in FY 2073/074 and in 2074/075. Analyzing the overall prepaid expenses to the current ratio of the co-operative the ratio is in sound position than another ratio. The cooperative paid more in advance.
2.1.2 Networking Capital Position
Working capital is the amount by which the value of the company’s current assets exceeds its current liabilities, also called net working capital. Sometimes, the term “working capital” is used as synonym for “current assets” but more frequently as “net working capital””, i.e. the amount of current assets that is more than current liabilities. Working capital is frequently used to measure a firm’s ability to meet current obligation. It measures how much in liquid assets a company has available to build its business.
Working capital is a common measure of the company’s liquidity, efficiency and overall health. Decision relating to working capital and short-term financing are referred to as working capital management. These involve managing the relationship between an entity’s short-term assets (inventories, accounts receivable, cash) and its short-term liabilities.
Calculation(formula)
Working capital (net working capital) = Current Assets- Current liabilities
Both variables are shown on the balance sheet (statement of financial position).
The net working capital of BSCCL for the study period is shown below:
Table 2.5
Networking Capital of BSCCL
___________________________________________________________________________
Fiscal Year Current Asset(Rs) Current Liabilities(Rs) Networking Capital
___________________________________________________________________________2070/071 3232797.73 12862149.48 8046206
2071/072 6205377.65 17249769.00 2123595
2072/073 3736226.00 15549459.23 29976245
2073/074 536000.260 21501336.83 44352677
2074/075 3863149.83 33216099.81 71777599
___________________________________________________________________________
Source: Annual Reports of BSCCL.
Figure: 2.5
Trend line showing Net Working Capital
That there is an adequate working capital in all five fiscal year adequate capital means on any hindrance in daily management or smooth operation of the organization. The networking capital is every year is increased. It measures how much in liquid assets a company has available to build its business. Working capital is common measure of a company’s liquidity, efficiency and overall health.
2.2 Analysis of the Results
It is intended to specify that the objectives of the business venture or project and identify the internal and external factors that are favorable and unfavorable to achieving those objectives. Here are some weaknesses and threats, which affect the organization performance. It may have lots of strength to be proud of but besides with some weaknesses and threats as well. And the organization does not remain some forever there will be lots of opportunities to expand the transactions. It has also its strength to be proud some weaknesses to be recovered and threats to be faced patiently.
BSCCL has vast network system in the nation thus helping customer to transact through the bank from place to place. It has many branches nationwide which is highest number of any joint venture bank in Nepal. It is the only bank to operate inside international airport of arrival and departure lounges.
BSCCL is well known for providing highly personalized services to its customers. It provides different services like, Tele banking service, safe deposit locker etc. It has also introduced number of attractive deposit skills.
Human Resources in BSCCL are well trained and they are dedicated to the bank too. It is providing high remuneration and other benefits as well to its staff.
The increase in the number of branches increase the cost operation; administration expenses for personnel etc. are increased.
The political instability in the country can be considered another weakness of the bank. Too much dependency in computers is not to be reliable.
BSCCL pays high interest rates on deposits. For this reason, the bank also charges high interest rates on credit, which has bad impact in investment situation in nation.
The current ratio of the co-operative is in decreasing order in every year. The current ratio of the co-operative in FY 2070/071 is 0.38 which is very less ratio as compared to standard rate. Analyzing the overall performance of the co-operative the current ratio of the co-operative is below the standard rate which is below the2:1. So it can be analyzed that the co-operative is not performing well.
The quick ratio of the co-operative is also decreasing order. Analyzing the overall performance of the co-operative the quick ratio of the co-operative is below the standard rate 1:1. It means the co-operative is not performing well in compare the current ratio and quick ratio.
Analyzing that the ratio for five fiscal years the cash to current liabilities are very less. The co-operative has the obligation or payable of the co-operative is higher than the receivable or assets. The ratio is in fluctuating situation. Analyzing the overall prepaid expenses to the ratio of the co-operative the ratio is in sound position than ratio. The cooperative paid more in advance.
That there is adequate working capital in all five fiscal year adequate capital means on any hindrances in daily management or smooth operation of the organization. The networking capital of every year is increased. It measures how much in liquid assets a company has available to build its business. Working capital is common measure of a company’s liquidity, efficiency, and over-all health.
2.3 Findings
This assignment work report has been prepared as per the format prescribed by the subject lecturer and entitled ‘A Study on Liquidity position of Garima Bikas bank Limited.’ This report has been divided into three chapters as ‘Introduction’, ‘Data Analysis and Presentation’ and Summary & Conclusion’ this main chapter contains various subjects. The main part of this report is presentation and Analysis of Data.
From the study, it is found that Bagaincha Saving and co-operative limited is overall financial [position of Bagaincha the nation and liquidity position of the bank is not so satisfactory.
As a convention rule, current ratio of 2:1 current assets twice of current liabilities or more is more satisfactory. The current ratio of BSCCL is fluctuating situation. It is maximum (i.e. 24.83) in the second year among those five years. During the study period last year also 2074/075 is able time the stand and i.e. 10.01 times. All other year are also above the standard, current ratio of 1 or less are typically considered very low and indicate financial difficulties. But all those five years are performing well and highly liquid stock and quality debtors.
Table and figure 2.1 shows the current ratio of the Bagaincha Savings and Co-operative Limited from FY 2070/071 to 2074/075. The current ratio of co-operative is in decreasing order and every year. The current ratio of the co-operative in FY 2070/071 is 0.38 which is very less ratio as compare to standard rate. The ratio is slightly decreases in FY 2071/072. Similarly, the ratio is again decreases in FY 2072/073 which 0.24. But the slightly increases in FY 2073/074 which is 0.25. The ratio is highly decreases in FY 2074/075 which is 0.12 times. Analyzing the overall performance of the co-operative the current ratio of the co-operative is below the standard rate which below the 2:1. So it can be analyzed that the co-operative is not performing well.
Table and figure 2.2 shows the quick ratio of the co-operative from the FY 2070/071 to 2074/075. The quick ratio of the co-operative is 0.378. The quick ratio of the cooperative is also decreasing order. The quick ratio is 0.35 in FY 2071/072. Similarly, the ratio is decreasing in FY 2072/073 but in 2073/074 the current ratio of the co-operative is slightly increases by0.1 which is 0.24. The current ratio of the co-operative is highly decreases which are 0.11. Analyzing the overall performance of the co-operative the quick ratio of the co-operative is also below the standard rate 1:1. It means the co-operative is not performing well in compare to current ratio and quick ratio.
The ratios of the different year are in fluctuating situation. In FY 2070/071 the cash to current ratio is 0.05 and again it highly increases in FY 2071/072 which is 0.02. But the ratio is highly increases in FY 2072/073 which is 0.12 % of the total current assts. The ratio is again decreases in FY 2073/074 which is 0.09% of the total current assets. Similarly, the cash to current ratio of the co-operative is highly decreases in 2074/75 which is 0.01, the lowest cash to current ratio during the five fiscal years. Analyzing the cash to current ratio, the co-operative does not hold high amount of cash in the vault as current assets.
Table and figure 2.4 shows the cash to current liabilities of the co-operative from FY 2010/071 to 2074/075. The ratio is slightly decreases in FY 2071/072, but it highly increases in FY 2072/073. Similarly, the ratio is slightly decreases in FY 2073/074 which is 0.095. Again, the ratio is decreased in FY2074/075 which is 0.008%. Analyzing the ratio of five years fiscal the cash to current liabilities is very less. The co-operative has high liabilities than its assts. The obligation or payable of the co-operative is higher than the receivable or assets.
Table and figure 2.5 shows the prepaid expenses to the current ratio from FY 2070/071 -2074/075. The current ratio is in fluctuating situation. The ratio is 0.78 in FY 2070/071, but it slightly decreases in FY 2071/072. Similarly, the ratio increases in FY 2072/073. The ratio is highly decreases in FY 2073/074 and in FY 2074/075. Analyzing the overall prepaid expenses to the current ratio of the co-operative paid more in advance.
That there is adequate working capital in all five fiscal years adequate capital means on any hindrance in daily management or smooth operation of the organization. The networking capital of every year is increased. It measures how much in liquid assets a company has available to build its business. Working capital is a common measure of a company’s liquidity, efficiency, and overall health.
CHAPTERIII
SUMMARY AND CONCLUSION
3.1 Summary
The Co-operative has been dedicated to maintaining the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. This study analyzed the overall liquidity position of Bagaincha Saving and Credit Co-operative Limited is better and performing well.
The firm liabilities are in an upward movement which is led to a huge loss to avoid that the company must take enough measures to avoid that. The company may take remedial actions for increasing its strengths in the overall activities. The firm may develop strategies in boosting up to cover the cost involved in the production. The management may take proper action in reducing the payment period and thus reduce the creditors of the firm. The company facing loss for five years the company must take necessary and essential measures to overcome the loss.
The firm liabilities are in upward movement which is led to a huge loss to avoid that the company must take enough measures to avoid that.
The company may take remedial actions for increasing its strength in overall activities.
The firm may develop strategies in boosting up to cover the cost involved in the production.
The management may take proper action in reducing the payment period and thus reduce the creditors of the firm.
The company facing loss for past five years accounting year the company must take necessary measures to overcome the loss.
3.2 Conclusion
Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. It helps to identify the operating efficiency of the firm and to help to understand t financial position of the firm. Liquidity helps to indicate the level of solvency of the firm. Solvency is the ability of a business to have strength asset to cover its liabilities. Solvency is often confused the liquidity, but it is not the same thing. The study of liquidity and solvency which is a help to the company, but they must investigate the effective management by that it helps to reduce the huge outflow of money. Competitors in the industries are too high to be a market leader. It must develop some strategies such cost leadership of diversification strategies.
The short course explored the vital issue of the liquidity risk management. Any organization’s worst nightmare is to find itself facing a liquidity crisis and begging its bankers often question the abilities of the company’s management at cash flow management and are reluctant to lend unconditionally further money to the organization. The management needs to make projections of the organization’s forward cash flows and maintain funding capacity that is ideally well more than this worst-case cash flow scenario. Maintaining a prudent maturity profile for funds is also necessary, and if the organization is large enough, it should seek to fund it from several markets rather than just a single market. Flexibility in financing is crucial, so far as allowed by those lending to the organization, the latter should seek optionality, or flexibility in the terms or conditions of the relevant agreement documentation. While adhering to all the rules above, the management should rank of-course the source of funds available in terms of comparative cost.
This free course provided an introduction of studying. It took you through a series of exercise designed to develop your approach to study and learning at a distance and helped to improve your confidence as an independence learner.
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APPENDICES
Questionnaires:
When was the Bank established?
How many Staffs are working there?
How many Current Ratios in co-operative?
How many Quick Ratios in co-operative?
What is the cash to Current Assets Ratio?
What is the Cash to Current Liabilities of co-operative?
The End….
