Thesis/Dissertation

Working Capital and Cash Management with Special Reference to Gorkha Savings and Finance Co-operative Limited (GSF]

This thesis examines working capital and cash management practices at Gorkha Savings and Finance Co-operative Limited (GSF) in Nepal. Established under the Co-operative Act, GSF achieved rapid deposit mobilization, with deposits comprising 80% to 97% of total source funds across seven analyzed operating periods. However, the institution operated without formal cash budgeting or strategic liquidity planning. Utilizing primary survey data from 90 respondents across Kathmandu, Lalitpur, and Bhaktapur alongside secondary financial balance sheet records, the study evaluated GSF's financial position using ratio analysis, the Miller-Orr stochastic model, Karl Pearson correlation, and hypothesis testing. Financial analysis revealed severe liquidity deterioration: GSF's current ratio fell from a healthy 2:1 down to 1:1, while the net working capital to total assets ratio dropped from 39% to 2%. Furthermore, applying the Miller-Orr model demonstrated high cash holding costs resulting from irregular, unbudgeted cash flows. Statistical testing confirmed a strong positive correlation (r = 0.997) between cash requirements and current assets. It is concluded that aggressive credit expansion without adequate liquid reserves compromised GSF's long-term operational stability. To address these challenges, the study recommends implementing structured cash budgeting, maintaining at least 30% liquidity reserves, rebalancing investment allocations, and restricting unsecured guarantee lending.

Published URL: 10.13140/RG.2.2.10988.88969

Political Economy Analysis of Local Economic Development Strategy: A Case Study of Chaudandigadhi Municipality

For the long term prosperity and welfare of locality, the local government has to be productive and able to offer economic opportunities to the poor, create wealth, generate jobs, increase incomes, and ultimately improve the quality of life. A strategic plan for sustainable development is needed to change existing local conditions, mindsets by building capacity, organizing participatory processes and empowering stakeholders. The New Constitution of Nepal 2015 has mandated a local government for local economic development as a full authority has been delegated to local government regarding the overall development of the municipality. However, many questions about stakeholders’ participation, transparency, accountability, openness, the capacity of people and local governments, inclusiveness, and equality are being raised. In this condition, this study attempted to answer these questions on the political economy perspective of the local economic development strategy set by Chaudandigadhi Municipality in the case study approach. For the study, both primary and secondary data collection methods have been used to justify qualitative and quantitative research methods.

The study diagnosed significant challenges and problems in the municipality in the local economic development sector, specifically, local actors have no awareness of local economic development; the five years periodic plan doesn’t prioritize local economic development; municipal resources have no capacity to lead local economic development; municipal resources are not congruent and consistent to the five-years periodic plan; the five-year plan set is ambiguous; patronage network influence policy and plan formulation and implementation; and people have no interest towards local economic development.

The implications and recommendations of the study are remained as taking a strategic approach, preparing detail sectoral plan to direct people, developing actionable programs with detailed implementation plans, clarifying target and milestone of the plan, balancing the structural implications, empowering the stakeholders can be the method to tackle above mentioned barriers.

Published URL: http://rgdoi.net/10.13140/RG.2.2.33594.41926