The human body was never meant to consume rice! You see, our genes have hardly changed in more than 30,000 years. However, our food choices and lifestyle have changed dramatically. The caveman would hardly recognize our food or way of life. Caveman food was never cooked as fire was not yet tamed. Thus, he ate only those foods that you can eat without treatment with or by fire. He ate fruits, vegetables, fish (sushi anyone?), eggs, nuts and meat.. Yes, even meat! You can even eat meat raw if you were starving in the forest. You have the necessary enzymes to digest meat. However, rice, like wheat and corn, cannot be eaten raw. It must be cooked. Even if you were starving in the desert, you cannot eat rice in the raw form. This is because we do not have the system of enzymes to break rice down. You were never meant to eat rice. To make matters worse, you not only eat rice, but also make it the bulk of your food. In some parts of Asia, rice forms up to 85% of the plate. Even if you take rice, keep it to a minimum. Remember, it is only for your tongue - not your body. Actually, rice and other grains like wheat and corn are actually worse than sugar. There are many reasons:
Rice becomes sugar - lots of it! This is a fact that no nutritionist can deny: rice is chemically no different from sugar. One bowl of cooked rice is the caloric equal of 10 teaspoons of sugar. This does not matter whether it is white, brown or herbal rice. Brown rice is richer in fibre, some B vitamins and minerals but it is still the caloric equal of 10 teaspoons of sugar. To get the same 10 teaspoons of sugar, you need to consume lots of kangkong-10 bowls of it.
Rice is digested to become sugar. Rice cannot be digested before it is thoroughly cooked. However, when thoroughly cooked, it becomes sugar and spikes circulating blood sugar within half an hour-almost as quickly as it would if you took a sugar candy. Rice is very low in the 'rainbow of anti-oxidants. ' This complete anti-oxidant rainbow is necessary for the effective and safe utilization of sugar. Fruits come with a sugar called fructose. However, they are not empty calories as the fruit is packed with a whole host of other nutrients that help its proper assimilation and digestion.
Rice has no fibre. The fibre of the kangkong fills you up long before your blood sugar spikes. This is because the fibre bulks and fills up your stomach. Since white rice has no fibre, you end up eating lots of 'calorie dense' food before you get filled up. Brown rice has more fibre but still the same amount of sugar.
Rice is tasteless-sugar is sweet. There is only so much that you can eat at one sitting. How many teaspoons of sugar can you eat before you feel like throwing up? Could you imagine eating 10 teaspoons of sugar in one seating?
Rice is always the main part of the meal. While sugar may fill your dessert or sweeten your coffee, it will never be the main part of any meal. You could eat maybe two to three teaspoons of sugar at one meal. However, you could easily eat the equal value of two to three bowls (20-30 teaspoons) of sugar in one meal. I am always amused when I see someone eat sometimes five bowls of rice (equals 50 teaspoons of sugar) and then asks for tea tarik kurang manis!
There is no real 'built in' mechanism for us to prevent overeating of rice: How much kangkong can you eat? How much fried chicken can you eat? How much steamed fish can you eat? Think about that!
In one seating, you cannot take lots of chicken, fish or cucumber, but you can take lots of rice. Eating rice causes you to eat more salt. As rice is tasteless, you tend to consume more salt-another villain when it comes to high blood pressure. You tend to take more curry that has salt to help flavor rice. We also tend to consume more ketchup and soy sauce which are also rich in salt.
Eating rice causes you to drink less water.. The more rice you eat, the less water you will drink as there is no mechanism to prevent the overeating of rice. Rice, wheat and corn come hidden in our daily food. As rice is tasteless, it tends to end up in other foods that substitute rice like rice flour, noodles and bread. We tend to eat the hidden forms which still get digested into sugar. Rice, even when cooked, is difficult to digest. Can't eat raw rice? Try eating rice half cooked. Contrary to popular belief, rice is very difficult to digest. It is 'heavy stuff'. If you have problems with digestion, try skipping rice for a few days. You will be amazed at how the problem will just go away. Rice prevents the absorption of several vitamins and minerals. Rice when taken in bulk will reduce the absorption of vital nutrients like zinc, iron and the B vitamins. Are you a rice addict? Going rice-less may not be easy but you can go rice-less. Eating less rice could be lot easier than you think.
Here are some strategies that you can pursue in your quest to eat less rice:
Eat less rice-cut your rice by half. Barry Sears, author of the Zone Diet, advises 'eating rice like spice'. Instead, increase your fruits and vegetables.
Take more lean meats and fish.. You can even take more eggs and nuts.
Have 'riceless' meals.
Take no rice or wheat at say, breakfast..
Go for eggs instead.
Go on 'riceless' days.
Go 'western' once a week.
Take no rice and breads for one day every week. That can't be too difficult. Appreciate the richness of your food.
Go for taste, colours and smells.
Make eating a culinary delight.
Enjoy your food in the original flavours.
Avoid the salt shaker or ketchup. You will automatically eat less rice.
Eat your fruit dessert before (Yes! No printing error) your meals.
The fibre rich fruits will 'bulk up' in your stomach.
Thus, you will eat less rice and more fruits
Tuesday, September 15, 2009
Friday, September 11, 2009
A CURE FOR DIABETES
While searching the net i have found some care measure of Diabetes which i have going to share
INGREDIENTS
100 grams Wheat Flour
100 grams Natural Gum {Goondh}
100 grams Barley
100 grams Black Seeds {Kalunji}
METHOD OF PREPARATION
Put all the ingredients in 5 cups of water.
Boil the mixture for 10 minutes.
Allow it to cool down.
Once cold, filter out the seeds and residue.
Preserve the water in a glass jug or bottle.
HOW TO USE IT
Take a small cupful of this liquid every morning on an empty stomach.
Continue for 7 days.
The following week repeat the same but take on alternate days.
With this 2 week treatment your insulin level should go back to normal, be free of this disease and enjoy any food you wish.
Before enjoying any food for diabetes you must consult to your doctors.
INGREDIENTS
100 grams Wheat Flour
100 grams Natural Gum {Goondh}
100 grams Barley
100 grams Black Seeds {Kalunji}
METHOD OF PREPARATION
Put all the ingredients in 5 cups of water.
Boil the mixture for 10 minutes.
Allow it to cool down.
Once cold, filter out the seeds and residue.
Preserve the water in a glass jug or bottle.
HOW TO USE IT
Take a small cupful of this liquid every morning on an empty stomach.
Continue for 7 days.
The following week repeat the same but take on alternate days.
With this 2 week treatment your insulin level should go back to normal, be free of this disease and enjoy any food you wish.
Before enjoying any food for diabetes you must consult to your doctors.
Dividend Implications for companies
Some studies, however, have demonstrated that companies that paydividends have higher earnings growth, suggesting that dividendpayments may be evidence of confidence in earnings growth andsufficient profitability to fund future expansion.
Even though companies' rewards shareholder for the money they hadinvested in the company, the dividend has certain implications forcompanies and its balance sheet. Whatever be the dividend types (Cashor Stock) it reduces the retained earnings by the amount of thedividends. When dividend is declared, the money is written in aliability side with a heading ‘dividend payable'. This liability isadjusted when the company actually makes payment on the payments date,usually few days after the ex-dividends date.
In the case of stock dividend (bonus share) even after the amountremoved from the retained earnings is added to the paid up capital andissued new shares to shareholders at par value. The par value of eachstock does not change, however the outstanding shares is increased,retained earnings is reduced and market capitalization heaved upward.
Dividend facts you must know
You people will wonder to know that, the term "dividend" comes fromthe arithmetic operation of division: a/b=c then a is the dividend, bis the divisor, and c the quotient.
Confused, aah yes!
Now let's set out the literal meaning of dividend in relation toequity market, "money for nothing" (great) everyone wish for the same.Wait!!! Dividend is not for everyone, but to those shareholders whoowes certain portion of shares in the company.
Dividend is the distribution of earnings from the company to itsshareholders for the percentage of money they have invested. It isreward from companies with jolly heart saying"Thank you guys forinvesting with me".
For example, if your uncle paddy owns 100 shares worth market priceRs. 500 each, he has Rs. 50000 worth of value in the stock. Companydecided to thank your uncle with certain cash rewards and provided 20percent cash dividends. Wow, its great 20% of Rs. 50000, equals to Rs.10000. Just a minute, 20% not of Rs. 50000 but 20 percent of facevalue from every stock.
That meant, every companies issued their shares to investors atcertain face value, such as Rs. 10, Rs. 100 (Most of the Nepalese companies have face value of Rs. 100). Now if the face value is Rs.100 of the scrip uncle paddy owes, he will receive Rs. 2000 (20percent of 100*100).
Dividends are in two forms: cash dividend and stock dividend. Behappy, if you are the shareholders of the dividend distributingcompany, you get it without any payment burden in your head. Dividendsseem great for shareholders, but are dividends good for company?Since, companies can use the earnings for re-investing and step theirhands ahead of competitors rather than giving dividends toshareholders. But, on the other side of the fence, there areshareholders who simply get interested in getting "free money" fromthe company for holding shares in hands even for long periods of time.Therefore, companies decided to attract general shareholders asking toinvest in their companies' shares because they endow with attractivedividends. It's just the better way to make shareholders cheerful andretain them with valuable optimism.
Cash dividends refer, giving shareholders the cash amount increasingtheir pocket size or adding their bank balance. Such dividends are aform of investment income and are usually taxable to the recipients inthe year they are paid. This is the most common method of sharingcorporate profits with shareholders of the company. At present,Citizens bank International decided to give 10% cash dividends; Nabilproposed 35 % cash dividends, Standard chartered 50%, Nepal InvestmentBank 20% and Unilever declared 450 percent cash dividends from theprofit fiscal year 2065/66.
However, stock dividends is the dividend given to shareholders thenumber of shares vis-à-vis to the shares they owned. Let's say, unclepaddy has 100 shares and company decided to provide 50 % stockdividend then your uncle will be entitled with 50 extra shares, now heholds total of 150 shares. Isn't that great? the portfolio surgedwithout any further investment. Currently at Nepalese market StandardChartered, Nabil bank both decided to provide 50 percent stockdividend from the profit of fiscal year 2065/66.
These sounds cool and interesting, however the dates of dividendshave implication to shareholders. Who will receive dividends decidesthe date of dividends:
Very first, dividends must be approved by a company's BOD every timethey are paid on consent of regularity body (NRB in case of FIs).There are basically four important dates to remember regardingdividends.
Declaration date: The BOD meeting propose to provide dividends toshareholders but need to be further approved by NRB and company'sAnnual General Meeting.
In-Dividend date: It is the last day before the book closing timeexpires. It meant, if uncle Pady bought on the day, company is liableto pay him dividends they declared. After this date the stock becomes ex dividends.
Ex-Dividend date: The day after the book closure, where all sharesbought and sold no longer come attached with the right to be paid themost recently declared dividends. It is relatively common for astock's price to decrease on the ex-dividends date by an amountroughly equal to the dividend paid.
Payment date: The day when the dividends is exactly paid toshareholders. The payment is adjusted in the balance sheet of thecompany.
Tuesday, September 8, 2009
DEVELOPMENT OF TOURISM IN NEPAL
There is no proper historical data when tourism was stared to our country. However, can say tourism in Nepal is said to be initiated during the Goops. The first declaration dynasty in Nepal. Instigate impressed by Nepal's arts and architecture, many famous people in Nepal during the ruling period of Lichhivis, Mall as and Ranas, but practically tourisms in Nepal was initiated after the revolution of 1951. The people were liberated and the gates of Nepal were opened still wider for all the foreign visitors.
Nepal has India in three side and china in the north, coming Nepal by land requires one to pass through India or china. The entry points to Nepal from India are Kakkarbihitta, Birjung, Belhiya, Bhairawa, Nepalijung, Dhangadi and mahendranagar. The Kodari pass in Nepal from china. Tourists entering the kingdom by land most passes an internal carnet. After revolution, Nepal is attracting point for tour and traveling, Nepal is landlocked country so that mostly tourists are used aero plane. For this purpose there are so many Airlines are serving the tourists like wise. Nepal Airlines (RA) is the national flag carrion with flight connection to Delhi, Mumbai in India, Bangkok in Thailand, Osaka in Japan, Hong Kong, Sanghai in china, Kula Lumpur in Malaysia, Dubai in United Arab Emirates and Singapore. the other international airlines connecting Katmandu to other part of the world are Biman Bangladesh to Dacca in Bangladesh, china airlines to Lash in Tibetan autonomous region of China, Drunk air to pass in Bhutan and New Delhi in India, Guff air to Abu Dhabi in United Arab Emirates, Indian airlines to Delhi in India, Quatal Airlines, Thai airlines, Sahara airlines, Pakistan airlines etc.
Tourism is the part was limited to those who could travel could travel foot or trek, in the face of great natural hazards. Because of lack of facilities such as road, communication network and crude means of transport. The development of arts, Architecture, culture, religion and natural beauty drew the attention of foreign travelers, mostly scholars and people with missionary zeal. At present, Nepal has every category of accommodation facilities that range from the international standards hotels, budget hotels, lodges, travel agencies, licensed tour guide, trekking agencies are providing standards services. Even in remote part of Nepal, the coming of tourists over the year has led to the local population paying attention to tourists facilities, hence making accommodation and meals for tourists more easily available then before.Ministry of culture, Tourism and Civil Aviation is developing tourism by government sector. NATA (Nepal Association of travel Agents), HAN (Hotel Association of Nepal), Nepal Maintaining Association and Tourism board are played vital role to development of tourism from its initial stage to present stage. In the present contest the government and private sectors jointly trying to develop the infrastructure for the tourism development. Many international chain of hotels were entered and organized different tourism promotional activities such as 'Visit Nepal 1998''Deatination Nepal Campaign 2002-2003' Sales Marketing Trade Faire Marketing, Sales Mission additional different festivals were organized, which represent "Nepal as of its own".
Now Nepal is going the celebrating the Nepal Tourism Year 2011 with the slogan "Nepal once not enough"
Nepal has India in three side and china in the north, coming Nepal by land requires one to pass through India or china. The entry points to Nepal from India are Kakkarbihitta, Birjung, Belhiya, Bhairawa, Nepalijung, Dhangadi and mahendranagar. The Kodari pass in Nepal from china. Tourists entering the kingdom by land most passes an internal carnet. After revolution, Nepal is attracting point for tour and traveling, Nepal is landlocked country so that mostly tourists are used aero plane. For this purpose there are so many Airlines are serving the tourists like wise. Nepal Airlines (RA) is the national flag carrion with flight connection to Delhi, Mumbai in India, Bangkok in Thailand, Osaka in Japan, Hong Kong, Sanghai in china, Kula Lumpur in Malaysia, Dubai in United Arab Emirates and Singapore. the other international airlines connecting Katmandu to other part of the world are Biman Bangladesh to Dacca in Bangladesh, china airlines to Lash in Tibetan autonomous region of China, Drunk air to pass in Bhutan and New Delhi in India, Guff air to Abu Dhabi in United Arab Emirates, Indian airlines to Delhi in India, Quatal Airlines, Thai airlines, Sahara airlines, Pakistan airlines etc.
Tourism is the part was limited to those who could travel could travel foot or trek, in the face of great natural hazards. Because of lack of facilities such as road, communication network and crude means of transport. The development of arts, Architecture, culture, religion and natural beauty drew the attention of foreign travelers, mostly scholars and people with missionary zeal. At present, Nepal has every category of accommodation facilities that range from the international standards hotels, budget hotels, lodges, travel agencies, licensed tour guide, trekking agencies are providing standards services. Even in remote part of Nepal, the coming of tourists over the year has led to the local population paying attention to tourists facilities, hence making accommodation and meals for tourists more easily available then before.Ministry of culture, Tourism and Civil Aviation is developing tourism by government sector. NATA (Nepal Association of travel Agents), HAN (Hotel Association of Nepal), Nepal Maintaining Association and Tourism board are played vital role to development of tourism from its initial stage to present stage. In the present contest the government and private sectors jointly trying to develop the infrastructure for the tourism development. Many international chain of hotels were entered and organized different tourism promotional activities such as 'Visit Nepal 1998''Deatination Nepal Campaign 2002-2003' Sales Marketing Trade Faire Marketing, Sales Mission additional different festivals were organized, which represent "Nepal as of its own".
Now Nepal is going the celebrating the Nepal Tourism Year 2011 with the slogan "Nepal once not enough"
Womens Age
Between the ages of 15 - 20 a woman is like Africa.
She is half discovered, half wild .
Between the ages of 20 - 30 a woman is like America.
Fully discovered and scientifically perfect.
Between the ages of 30 - 35, she is like India & Japan.
Very hot, wise and beautiful !!!!!!!!!
Between the ages of 35 - 40 a woman is like France.
She is half destroyed after the war but still desirable.
Between the ages of 40 - 50 she is like Germany.
She lost the war but not the hope.
Between the ages of 50 - 60 she is like Russia.
Very wide, very quiet but nobody goes there.
Between the ages of 60 - 70 a woman is like England.
With a glorious past but no future.
After 70, they become Siberia.
Everyone knows where it is, but no one wants to go there.
Req. :- Please don't take it serious this is only for fun
She is half discovered, half wild .
Between the ages of 20 - 30 a woman is like America.
Fully discovered and scientifically perfect.
Between the ages of 30 - 35, she is like India & Japan.
Very hot, wise and beautiful !!!!!!!!!
Between the ages of 35 - 40 a woman is like France.
She is half destroyed after the war but still desirable.
Between the ages of 40 - 50 she is like Germany.
She lost the war but not the hope.
Between the ages of 50 - 60 she is like Russia.
Very wide, very quiet but nobody goes there.
Between the ages of 60 - 70 a woman is like England.
With a glorious past but no future.
After 70, they become Siberia.
Everyone knows where it is, but no one wants to go there.
Req. :- Please don't take it serious this is only for fun
Monday, September 7, 2009
Tit For Tat...!!!
The phone bill was exceptionally high and the man of the house called a family meeting.
Dad: People this is unacceptable. You have to limit the use of the phone. I do not use this phone, I use the one at the office.
Mum: Same here, I hardly use this home telephone as I use my work telephone
Son: Me too, I never use the home phone. I always use my company mobile
Maid Servant : So what is the problem? We all use our work telephones
Dad: People this is unacceptable. You have to limit the use of the phone. I do not use this phone, I use the one at the office.
Mum: Same here, I hardly use this home telephone as I use my work telephone
Son: Me too, I never use the home phone. I always use my company mobile
Maid Servant : So what is the problem? We all use our work telephones
Tuesday, September 1, 2009
Java Interview attended by our Banta Singh
Q. What is the difference between an Abstract class and Interface?
A. Terms are different ... nothing more
Q. What is JFC ?
A. Jilebi, Fanta & Coffee
Q. Explain 2 tier and 3 -tier Architecture ?
A. Two wheelers like scooters will have 2 tyres and autorickshaws will have 3 tyres.
Q. I want to store more than 10 objects in a remote server? Which methodology will follow?
A. Send it through courier.
Q. Can I modify an object in CORBA?
A. As you wish , I do not have any objections.
Q. How to communicate 2 threads each other ?
A. Sorry, Non living things can't communicate.
Q. Explain RMI Architecture?
A. I am a computer professional not an architect student.
Q. What is the use of Servlets ?
A. In hotels, they can replace servers.
Q. What is the dif ference between Process and Threads?
A. Threads are small ropes. Make a rope from threads is an example for process.
Q. What is JAR file ?
A. File that can be kept inside a jar.
Q. What is JINI?
A. A ghost which was Aladdin's friend.
Q. How will you call an Applet from a _Java Script?
A. I will give invitation.
Q. What is bean ? Where it can be used ?
A. A kind of vegetable. In kitchens for cooking they can be used.
Q. Write down how will you create a binary Tree ?
A. When we sow a binary seed, a binary tree will grow.
A. Terms are different ... nothing more
Q. What is JFC ?
A. Jilebi, Fanta & Coffee
Q. Explain 2 tier and 3 -tier Architecture ?
A. Two wheelers like scooters will have 2 tyres and autorickshaws will have 3 tyres.
Q. I want to store more than 10 objects in a remote server? Which methodology will follow?
A. Send it through courier.
Q. Can I modify an object in CORBA?
A. As you wish , I do not have any objections.
Q. How to communicate 2 threads each other ?
A. Sorry, Non living things can't communicate.
Q. Explain RMI Architecture?
A. I am a computer professional not an architect student.
Q. What is the use of Servlets ?
A. In hotels, they can replace servers.
Q. What is the dif ference between Process and Threads?
A. Threads are small ropes. Make a rope from threads is an example for process.
Q. What is JAR file ?
A. File that can be kept inside a jar.
Q. What is JINI?
A. A ghost which was Aladdin's friend.
Q. How will you call an Applet from a _Java Script?
A. I will give invitation.
Q. What is bean ? Where it can be used ?
A. A kind of vegetable. In kitchens for cooking they can be used.
Q. Write down how will you create a binary Tree ?
A. When we sow a binary seed, a binary tree will grow.
Working Capital Management
The management of the funds of business can be described as financial management. Financial management is mainly concerned with two aspects. Firstly, fixed assets and fixed liabilities, in other words, long term investment and sources of funds, secondly, current uses and sources of funds. Both of these types of funds play a vital role in business finance. Normally the finance function can be divided in three decision activities i.e. Investment decision, Financing decision, Dividend policy decision. But the must important decision for business is investment decision it include the long term assets management and short term assets management i.e. working capital management.
In the words of K.V. Smith, The term working capital management is closely related with short term financing and it is concerned with collection and allocation of resources. Working capital management is related to the problems that arise in attempting to manage the current assets, the current liabilities and the interrelationships that exist between them. (Smith, 1974:5)
Working capital refers to the resources of the firm that are used to conduct operations of day-to-day work that makes the business successful. Without cash, bills cannot be paid, without receivable the firm can not allow timing different between delivering goods to services and collecting the money to pay for them, without inventories the firm cannot engage in production nor can it stock goods to provide immediate deliveries. As a result of the critical nature of current assets the management of working capital is one of the most important areas in determining whether a firm will be successful. The term working capital refers to the current assets of the firm's those items that can be converted into cash with in the year. Net working capital is defined as the difference between current assets and current liabilities. (Hamption & Wagner, 1989:3-4)
The goal of working capital management is to support the long-term operation and financial goals of the business. In effect, this involves recognizing the relationship between risk and return. Three elements must of included in analysing the trade off between risk and return when managing working capital. (I) Insolvency: This condition occurs when a firm can no longer pay its bills and must default on obligations and possibility declares bankruptcy. A firm without adequate level of working capital may have to face this risk. (II) Profitability of Assets: Different level of current assets will have varied effects on profits. A high level of inventory will require high carrying cost. At the same time, the firm will have a wide range of goods to sell and may be able to generate higher sales and profit. Each decision on the level of cash, receivables and inventory should consider the effects to different level. (III) Cost of financing: When interest rates are high, its costs more to carry inventory then when rates are low. Large Cash balances may not earn the return that is possible if the cash is converted into operating assets. The Cost of debt and the opportunity costs of alternative investments are items to consider when evaluating working capital level. (Hamption & Wanger, 1989:10)
According to I.M. Panday, there are two concepts of working capital gross concept and net concept. The gross working capital, simply called as working capital, refers to the firms’ investment in current assets. Current assets are the assets which can be converted into cash within accounting year (or operating cycle) and include cash, short-term securities, debtors, bill receivable and stocks. The term net working capital refers to the difference between current assets and current liabilities. Current liabilities are those claims of outsiders, which are expected to mature for payment within an accounting year and include creditors, bills payable and outstanding expenses. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceed current liabilities and a negative net working capital occurs when current liabilities are in excess of current assets. He also added that net working capital concept also covers the question of judicious mix of long-term and short term funds for financing current assets. (Pandey, 1992:796-797)
By analysing the above concept about working capital, we concluded that, all the corporations, whether public or private, manufacturing or non-manufacturing have just adequate working capital to serve in competitive market. It is because excessive or inadequate working capital is dangerous from the firm's point of view. Excessive investment on working capital affects a firm's profitability just as idle investment, yields nothing. In the same way, inadequate investment on working capital affects the liquidity position of the company and leads to financial embarrassment and failure of the company.
In the words of K.V. Smith, The term working capital management is closely related with short term financing and it is concerned with collection and allocation of resources. Working capital management is related to the problems that arise in attempting to manage the current assets, the current liabilities and the interrelationships that exist between them. (Smith, 1974:5)
Working capital refers to the resources of the firm that are used to conduct operations of day-to-day work that makes the business successful. Without cash, bills cannot be paid, without receivable the firm can not allow timing different between delivering goods to services and collecting the money to pay for them, without inventories the firm cannot engage in production nor can it stock goods to provide immediate deliveries. As a result of the critical nature of current assets the management of working capital is one of the most important areas in determining whether a firm will be successful. The term working capital refers to the current assets of the firm's those items that can be converted into cash with in the year. Net working capital is defined as the difference between current assets and current liabilities. (Hamption & Wagner, 1989:3-4)
The goal of working capital management is to support the long-term operation and financial goals of the business. In effect, this involves recognizing the relationship between risk and return. Three elements must of included in analysing the trade off between risk and return when managing working capital. (I) Insolvency: This condition occurs when a firm can no longer pay its bills and must default on obligations and possibility declares bankruptcy. A firm without adequate level of working capital may have to face this risk. (II) Profitability of Assets: Different level of current assets will have varied effects on profits. A high level of inventory will require high carrying cost. At the same time, the firm will have a wide range of goods to sell and may be able to generate higher sales and profit. Each decision on the level of cash, receivables and inventory should consider the effects to different level. (III) Cost of financing: When interest rates are high, its costs more to carry inventory then when rates are low. Large Cash balances may not earn the return that is possible if the cash is converted into operating assets. The Cost of debt and the opportunity costs of alternative investments are items to consider when evaluating working capital level. (Hamption & Wanger, 1989:10)
According to I.M. Panday, there are two concepts of working capital gross concept and net concept. The gross working capital, simply called as working capital, refers to the firms’ investment in current assets. Current assets are the assets which can be converted into cash within accounting year (or operating cycle) and include cash, short-term securities, debtors, bill receivable and stocks. The term net working capital refers to the difference between current assets and current liabilities. Current liabilities are those claims of outsiders, which are expected to mature for payment within an accounting year and include creditors, bills payable and outstanding expenses. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceed current liabilities and a negative net working capital occurs when current liabilities are in excess of current assets. He also added that net working capital concept also covers the question of judicious mix of long-term and short term funds for financing current assets. (Pandey, 1992:796-797)
By analysing the above concept about working capital, we concluded that, all the corporations, whether public or private, manufacturing or non-manufacturing have just adequate working capital to serve in competitive market. It is because excessive or inadequate working capital is dangerous from the firm's point of view. Excessive investment on working capital affects a firm's profitability just as idle investment, yields nothing. In the same way, inadequate investment on working capital affects the liquidity position of the company and leads to financial embarrassment and failure of the company.
It is therefore, a recognized fact that any mistake made in management of working capital can lead to adverse effects in business and reduces the liquidity, turnover and profitability and increases the cost of financing of the enterprises.
Commercial Bank
It is difficult to give concise and accurate definition of bank. It is so because a modern bank renders various functions. It is difficult to include all these functions in a single and concise definition. Even though, it can be said that a bank is an institution whose business is to trade in money. Trading in money relates to activities such as taking deposit, granting loans, discounting bills, issuing cheque to be drawn upon itself and other various functions on behalf of customers. Any institution will be known as bank if it renders all or some of these functions. It is quite impossible to discharge all these functions by a single bank. So they specialize in certain set of functions. Banks are classified on the basis of their functions, which are as follows;
1. Central Bank
2. Commercial Bank
3. Agriculture Bank
4. Industrial Bank
5. Exchange Bank
6. Saving Bank etc.
American Institute of Banking defines commercial bank, as "Commercial Bank is a corporation which accepts demand deposits subject to cheques and makes short term loans to business enterprises, regardless of the scope of its other services". The institution also laid down the four functions of commercial bank as receiving and handling deposits (Deposit Function), handling payments of money (Payment Function), making loans and investments (Loan Function) and creating money by extension of credit (Money Function). (American Institute of Banking, 1972:345)
In today's concern the operating function of the commercial banks are, (a) to collect working capital (b) to utilize the working capital in various purposes (c) by utilizing the working capital, it earns profit and (d) part of the profit is distributed as dividend and part of the profit is retained for the expansion of banking transactions.(Garg, 1977:271)
Commercial Bank Act, 2031 B.S. of Nepal has defined it as a commercial bank is one which exchanges money, deposits money, accepts deposits, grants loans and performs commercial banking functions and which is not a bank meant for co-operative agriculture, industries or for such specific purpose. The Commercial Bank Act 2031 also pointed the functions of commercial banks commercial banks provide short term debts necessary for trade and commerce. They take deposits from the public and grants loans in different forms. They purchase and discount bills of exchange, promissory note, and exchange foreign currency. They discharge various functions on behalf of their customers provided that they are paid for their services.
1. Central Bank
2. Commercial Bank
3. Agriculture Bank
4. Industrial Bank
5. Exchange Bank
6. Saving Bank etc.
American Institute of Banking defines commercial bank, as "Commercial Bank is a corporation which accepts demand deposits subject to cheques and makes short term loans to business enterprises, regardless of the scope of its other services". The institution also laid down the four functions of commercial bank as receiving and handling deposits (Deposit Function), handling payments of money (Payment Function), making loans and investments (Loan Function) and creating money by extension of credit (Money Function). (American Institute of Banking, 1972:345)
In today's concern the operating function of the commercial banks are, (a) to collect working capital (b) to utilize the working capital in various purposes (c) by utilizing the working capital, it earns profit and (d) part of the profit is distributed as dividend and part of the profit is retained for the expansion of banking transactions.(Garg, 1977:271)
Commercial Bank Act, 2031 B.S. of Nepal has defined it as a commercial bank is one which exchanges money, deposits money, accepts deposits, grants loans and performs commercial banking functions and which is not a bank meant for co-operative agriculture, industries or for such specific purpose. The Commercial Bank Act 2031 also pointed the functions of commercial banks commercial banks provide short term debts necessary for trade and commerce. They take deposits from the public and grants loans in different forms. They purchase and discount bills of exchange, promissory note, and exchange foreign currency. They discharge various functions on behalf of their customers provided that they are paid for their services.
Objectives of Joint Venture Banks
Joint venture banks were established to invite foreign investment and modern technology to provide financial services to the target market in the kingdom of Nepal. Government policy of economic liberation has opened its door to private foreign investment in conjunction with Nepalese investors. This has intensified the competition, which has ultimately affected the profitability of the banks. Hence to become successful in this competitive environment, all banks are moving ahead with some specific objectives, which can be summarized as below:
- To become the most preferred supplier of financial services to the target market and to become noted for their professionalism of its staff and management.
- To gain their position as the leading bank in the provision of their financial performance.
- To be identified as a good corporate citizen.
- To be recognized for the quality and the stability of their earning.
- To be able to provide stable and consistent return to their shareholders.
In order to achieve the above mentioned objectives, the JVBs should concentrate in their thrust areas, viz; corporate banking, retail and private banking, Investment banking credit cards and technology and at the same time they must maintain their asset quality by keeping intact their lending standards.
- To become the most preferred supplier of financial services to the target market and to become noted for their professionalism of its staff and management.
- To gain their position as the leading bank in the provision of their financial performance.
- To be identified as a good corporate citizen.
- To be recognized for the quality and the stability of their earning.
- To be able to provide stable and consistent return to their shareholders.
In order to achieve the above mentioned objectives, the JVBs should concentrate in their thrust areas, viz; corporate banking, retail and private banking, Investment banking credit cards and technology and at the same time they must maintain their asset quality by keeping intact their lending standards.
Joint Venture Banks
A joint venture is an association of two or more persons or parties, having mutual advantage in specific operations and is undertaken to make the operation highly remunerative with their collective efforts.
Joint Venture Banks are financial intermediaries, financing deficit units with money deposited with them by surplus units. The financial system or the banking industry in precise is a complex network embracing payments mechanism and the borrowing and lending of funds. Though they have other important functions, the key role played by these banks in the system is to act as financial intermediaries channelling funds from those with excess income to those wishing to borrow.(Wright & Valentine, 1997:29)
A Joint Venture Bank is the joining of forces between two or more enterprises for the purpose of carrying out specific operation (industrial or commercial investment), production or trade.(Gupta, 1984:15)
Joint Venture Banks are financial intermediaries, financing deficit units with money deposited with them by surplus units. The financial system or the banking industry in precise is a complex network embracing payments mechanism and the borrowing and lending of funds. Though they have other important functions, the key role played by these banks in the system is to act as financial intermediaries channelling funds from those with excess income to those wishing to borrow.(Wright & Valentine, 1997:29)
A Joint Venture Bank is the joining of forces between two or more enterprises for the purpose of carrying out specific operation (industrial or commercial investment), production or trade.(Gupta, 1984:15)
Evolution of Banking Sector in Nepal
Banking service is the oldest service industry in Nepal. It has gone through the various stages of evolution and development since the Vedic times (200 to 1400 B.C.) Though the modern banking institution has a very recent origin in Nepal, some crude bank operations were in practice even in the ancient time In the Nepalese Chronicle, it was recorded that the new era known as Nepal Sambat was introduced by Shankhadhar, a sudra merchant of Kantipur in 879 or 880 A.D; after having paid all the outstanding debts in the country. This shows the basis of money lending practice in ancient Nepal. Towards the end of 8th century, Gunkam Dev had borrowed money to rebuild the Kathmandu Valley. In 11th century, during Malla regime there was an evidence of professional moneylenders and bankers. It is further believed that money-lending business, particularly for financing the foreign trade with Tibet, became quite popular during regime of Mallas. However, in the absence of any regulatory measures, the unscrupulous moneylenders were known to have charged exorbitant rates of interest and other extra dues on loans advanced.
These inconveniences led the Prime Minister Ranodeep (1877-1885) to establish Tejarath Addaha in Kathmandu, which was a government financial institution supplying credit to the people at 5% rate of interest against security of gold, silver and ornaments. The government servants were also entitled to take loans from Tejarath, repayable from their salary at the source. During the time of Chandra Shamsher (1901-1929), credit facilities of Tejarath were extended to some other parts of the country by opening its branches. It is believed that the so-called well-to-do persons used to take loans from private money lenders even at a higher rate of interest than those from the government institution, for they were not prepared to disclose in public anything that was likely to affect their prestige. When they were approached by this type of clients, the professional money lenders used to raise loans in their own names from Tejarath at 5% rate of interest against gold and ornaments, which were not their own but brought to them by their clients as security for the loans to be financed from the funds raised from Tejarath itself. Thus, without any resources of their own and without any risks on their own part, the money lenders could manage very well to exploit their special type of clients just playing the role of middleman between their clients and the government institution. To control spurious rates of interest and also to curb unfair practice on the part of the unscrupulous moneylenders, legislative measures were also taken.
Later, with the growing necessity of the commercial banks in the world, Nepal Bank Limited, the first commercial bank of Nepal, came into being in 1937 A.D. replacing the older system of banking. In the present scenario different types of banks are being practiced in Nepal, but among them commercial banks play a vital role in the economic development of the country.
As mentioned above, with the motive to develop the trade and industry in the country commercial bank called Nepal Bank Limited was established in 1937 A.D. It was established under the Nepal Bank Act of 1936 A.D. and the late King Tribhuvan Bir Bikram Shah Dev inaugurated this bank. At that time the authorized capital of Nepal Bank Limited (NBL) was Rs. 10 millions, divided into 1,00,000 shares of Rs. 100.00 each. Nepal Bank Limited had a responsibility of attracting people towards banking sector from predominant sahu-mahajan's transaction and introducing other banking services as well. Being a commercial bank, it was natural that Nepal Bank Limited paid more attention to profit generating business. But it is the duty of the government to look into the neglected sectors. Therefore Nepal Bank Limited was established with 51% ownership of His Majesty Government (HMG) (Now Nepal Government) and 49% of the equity participation from private sector. With the development of banking sector and to help the government, formulate monetary policies, Nepal Rastra Bank was set up in 1956 A.D. (14th Baisakh 2013 B.S), the central bank of the country. Since then it has contributed to the growth of financial sector.
The growth and development of the country is possible only when competitive banking services reach each and every corner of the country. However, as the central bank, Nepal Rastra Bank had its own limitations and as a commercial bank it was not logical for Nepal Bank Limited to go to unprofitable sectors. So, to catch up with these problems, the government established Rastriya Banijaya Bank is 2022 B.S. (1965 A.D), under Banijya Bank Act 1965 A.D. as a fully state owned commercial bank (Dahal, 2002:11). Then the establishment of Nepal Industrial Development Corporation, Employee Provided Fund, Agriculture Development Bank etc, followed the formation of financial institutions.
With the aim to provide quality-banking service, enhance the efficiency and healthy competition, foreign investment and new technology in banking sector was introduced. Nepal Arab Bank, the first joint venture bank of Nepal was established in 1984 A.D. (2041 B.S). The bank was the outcome of joint venture with Dubai Bank Limited of United Arab Emirates. The footstep of this bank was followed by Nepal Indosuez Bank a joint venture bank with a Bank of Paris in 1986 A.D. (2041 B.S) and later other joint venture banks are established in Nepal.
These inconveniences led the Prime Minister Ranodeep (1877-1885) to establish Tejarath Addaha in Kathmandu, which was a government financial institution supplying credit to the people at 5% rate of interest against security of gold, silver and ornaments. The government servants were also entitled to take loans from Tejarath, repayable from their salary at the source. During the time of Chandra Shamsher (1901-1929), credit facilities of Tejarath were extended to some other parts of the country by opening its branches. It is believed that the so-called well-to-do persons used to take loans from private money lenders even at a higher rate of interest than those from the government institution, for they were not prepared to disclose in public anything that was likely to affect their prestige. When they were approached by this type of clients, the professional money lenders used to raise loans in their own names from Tejarath at 5% rate of interest against gold and ornaments, which were not their own but brought to them by their clients as security for the loans to be financed from the funds raised from Tejarath itself. Thus, without any resources of their own and without any risks on their own part, the money lenders could manage very well to exploit their special type of clients just playing the role of middleman between their clients and the government institution. To control spurious rates of interest and also to curb unfair practice on the part of the unscrupulous moneylenders, legislative measures were also taken.
Later, with the growing necessity of the commercial banks in the world, Nepal Bank Limited, the first commercial bank of Nepal, came into being in 1937 A.D. replacing the older system of banking. In the present scenario different types of banks are being practiced in Nepal, but among them commercial banks play a vital role in the economic development of the country.
As mentioned above, with the motive to develop the trade and industry in the country commercial bank called Nepal Bank Limited was established in 1937 A.D. It was established under the Nepal Bank Act of 1936 A.D. and the late King Tribhuvan Bir Bikram Shah Dev inaugurated this bank. At that time the authorized capital of Nepal Bank Limited (NBL) was Rs. 10 millions, divided into 1,00,000 shares of Rs. 100.00 each. Nepal Bank Limited had a responsibility of attracting people towards banking sector from predominant sahu-mahajan's transaction and introducing other banking services as well. Being a commercial bank, it was natural that Nepal Bank Limited paid more attention to profit generating business. But it is the duty of the government to look into the neglected sectors. Therefore Nepal Bank Limited was established with 51% ownership of His Majesty Government (HMG) (Now Nepal Government) and 49% of the equity participation from private sector. With the development of banking sector and to help the government, formulate monetary policies, Nepal Rastra Bank was set up in 1956 A.D. (14th Baisakh 2013 B.S), the central bank of the country. Since then it has contributed to the growth of financial sector.
The growth and development of the country is possible only when competitive banking services reach each and every corner of the country. However, as the central bank, Nepal Rastra Bank had its own limitations and as a commercial bank it was not logical for Nepal Bank Limited to go to unprofitable sectors. So, to catch up with these problems, the government established Rastriya Banijaya Bank is 2022 B.S. (1965 A.D), under Banijya Bank Act 1965 A.D. as a fully state owned commercial bank (Dahal, 2002:11). Then the establishment of Nepal Industrial Development Corporation, Employee Provided Fund, Agriculture Development Bank etc, followed the formation of financial institutions.
With the aim to provide quality-banking service, enhance the efficiency and healthy competition, foreign investment and new technology in banking sector was introduced. Nepal Arab Bank, the first joint venture bank of Nepal was established in 1984 A.D. (2041 B.S). The bank was the outcome of joint venture with Dubai Bank Limited of United Arab Emirates. The footstep of this bank was followed by Nepal Indosuez Bank a joint venture bank with a Bank of Paris in 1986 A.D. (2041 B.S) and later other joint venture banks are established in Nepal.
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