1

CHAPTER I
INTRODUCTION

1.1 Background of the Study

Remittance history

A remittance is a transfer of money, often by a foreign worker to an individual in their

home country. Money sent home by migrants competes with international aid as one of
the largest financial inflows to developing countries. Workers' remittances are a
significant part of international capital flows, especially with regard to labor-exporting
countries

Remittance, usually understood as the money or the goods that migrants that families,
friends, relatives in the origin countries are often the most directed well known link
between migrants and development. Remittance exceeds the official development aid but
they are private funds. Global estimate of financial transfer by migrants include
transactions beyond what are commonly assumed to be remittances as the stastical
definition used for the collection of data on remittance is broader (IMF, 2009).

According to the World Bank, in 2018 overall global remittance grew 10% to US$689
billion, including US$528 billion to developing countries. Overall global remittance is
expected to grow 3.7% to US$715 billion in 2019, including US$549 billion to
developing nations.

The bulk of remittances received by countries in South and South-West Asia comes from
temporary labour migrants. One obvious reason for this is that temporary labour migrants
now outnumber those who have migrated permanently to settle in Australia, Europe or
North America. Another factor is that most temporary labour migrants move overseas
without their families with the aim to remit their earnings back home, while permanent
emigrants leave their country of origin for a number of different reasons and tend to take
their families with them and, as a matter of course, spend more money in the country of
destination. Notably, some of the temporary labour migrants in Gulf Corporation Council
(GCC) countries remain in the host country for an extended period but are not usually
given the opportunity to permanently settle there.
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There are a number of driving forces behind remittances, including among others,
insurance motives, strategic motives, such as expecting non-monetary returns from the
remittance-receiving family and investment motives. Research has shown that for
temporary labour migrants, insurance or strategic motives seem to be the main drivers to
remit, while for permanent emigrants investment motives have a greater importance.

Although they are more often associated with labour migration, all migrants, including
refugees, have the potential to remit. This potential largely depends on the conditions of
migrants face in the host country. Remittances made by temporary migrant workers or
permanent emigrants are usually welcome, while those sent by refugees are sometimes
considered controversial as they may be sent with the intention to help perpetuate
existing conflicts or strengthen oppositional political movements.

History of remittance in Nepal

Nepal has also long history of international labour migration about 200 years ago. In 19th
century, for instance, the first men migrated to Lahore (in today's Pakistan) to join the
army of Sikh ruler, Ranjit Sing and later in British force since 1815-16. With the
entrance of globalization and liberalization, most of the youths of Nepal begin to migrate
year on year for foreign employment in the recent decades because of economic plus
non-economic causes. Many workforce regard abroad employment as their only viable
option as there exists political havoc in the country. As a result, 250,000 people on an
average leave the country annually in search of employment opportunities since 2007
(Ministry of Finance, 2011). IMF, (2009) explained that remittances denote household
income from foreign economies arising mainly from the temporary or permanent
movement of people to those economies. Remittances include cash and non cash items
that flow through legal channels, such as via electronic wire or through informal channel,
such as money or goods carried across borders. They largely consist of funds and
noncash times sent or given by individual, who have migrated to a new economy and
become resident there, and the net compensation of boarder, seasonal, or other short-term
workers who are employed in an economy in which they are not resident.

Moreover, the inflow of foreign remittances can make effective contribute to develop the
financing capacities of the financial system, particularly in banking sector. Many studies
showed that the enhancing of financial system in developing or emerging countries is an
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important factor of growth. In the case of several countries the surge of the remittances
involves a liquidity increasing of the banks, a point which can be considered that if banks
use these funds to lend more easily credits to small and medium-sized enterprises.
However, banks would prefer to buy treasury bonds in spite of financing small private
companies. The fact that this effect is more or less obvious according to the degree of
financial development has been reached in the country.

Method of transfer of remittance

Remittances can be in the form of cash or in kind. Remittances in kind also play an
important role and are often physically brought in during family visits and especially
when migrants return to their home countries. Remittances in cash are transferred
through a number of ways. Among them are bank transfers, being hand-carried during
home visits or by friends or relatives and the hundi system, in which money is transferred
through non-banking sources, such as informal money changers or other businesses
operating in the destination countries. As per official report, remittances are transmitted
through, they are easy to track. To get the full scope of remittances in a country, data
must be obtained on the flows that come in through informal channels and the most
common way to obtain this data is through household or other types of surveys.

Dependency in remittance

Dependency on remittances is mostly measured as remittances to gross domestic product

(GDP). However, it is also worthwhile to examine remittances in comparison to other
sources of foreign income, such as FDI, official development assistance (ODA) and
exports. Even though a country’s ratio of remittances to GDP may be relatively low, it
can still depend on remittances as a source of foreign income in cases, in which a large
proportion of GDP is domestically generated.

In 2010, Nepal, with remittances amounting to 22.1 per cent of GDP, was the most
remittance-dependent country in South and South-West Asia, followed by Bangladesh,
with remittances amounting to 10.8 per cent of GDP. At the opposite end, countries in
the sub-region least dependent on remittances in 2010 were Bhutan (0.32 per cent of
GDP), Maldives (0.28 per cent of GDP) and Turkey (0.12 per cent of GDP).
 4

Gender impact of remittance

Remittances can contribute to changing gender dynamics depending on whether women

themselves migrate or stay behind and also shown that the effects of remittances differ
based on the gender of the person administering the funds.

Impact on development

The impact of remittances on development is still an area open for debate. But most
experts agree that remittance flows in the form of direct transfers to households raise
household incomes and have the potential to contribute to overall poverty reduction.

1.2 Profile of the Organization

Puspa Trade & Suppliers is registered firm registered under the Private Firm Registration
Act, 2048 with Chamber of Commerce and Industry Dhangadhi , Kailali on 2073 having
its principal place of business at Tikapir Municipality, Ward No 1, Munuwa Road,
Tikapur, Kailali. It is a proprietary formed by Mr. Pusparaj Chaudhary resident of
Tikapur, Kailali.

This firm was registered with the Registered Capital of Rs. 10,00,000/-. They have not
made any increment in the capital subsequently after registration, which is remain same.
But when they are preparing yearly Profit & Loss Account and Balance Sheet, they come
to know the profit and loss of the firm. Excess of income is recorded by them in the
books of account and excess amount is shown under the head retained head.

Proprietor of the firm has started the firm with his own capital of Rs. 10,00,000/- at the
initial stage at present his total networth of Rs. 15,50,000/- as on data explained by the
staff of firm.

Firm has employed three persons proprietor, one account and administration and one is
helper. Two of the staff are employed in the monthly salary basis. They are paying at the
completion of month.

Business and services

The principal place of business is located the Munuwa Road in the main Bazar of the
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Tikapur. It is a mid point of the market. All the government office, bank financial
institute, school, campus, and shops are surrounded to it.

This firm is forming for the purpose of remit the fund within the country and receiving
the fund from out side the country. They having agency or registered to themselves with
the professional money transfer agency like IME (International Money Express), IME
Pay, Prabhu, Himal Remit, City Express, e-Sewa and GME. They have to deposit some
amount as refundable security deposit with those remittance agency to become their
member and provide services. (Source: Field Survey, 2021)

This firm is providing services of sending and receiving of remittance to the customers.
Besides sending and receiving money they are providing following services:

 Sending and receiving money

 Utility bill payment.
 Ticketing service etc.

Commission is a service charge assessed by the service provider for providing services or
handling job assigned to him. In the case of remittance business firm are charging certain
amount from their customers for providing service to them. Commission formed the part
of income of business firm, which is charged on certain range of amount remitted by the
customers. The income generated from the remittance agency is shared by remittance
company and business in the agree ratio or agreement signed by them. The sharing of
income is depend upon the terms and condition of agency between the parties to the
agreement. (Source: Field Survey, 2021)

IME is a professional money transfer agency, which is mostly used by them to receive of
money from around the world. As per the explanation of Proprietor and staff of Puspa
Trade & Suppliers they are completing 85% transaction with the IME Money Express.
Details about IME is provided below:

International Money Express (IME)

Mr. Chndra Prakash Dhakal, is the first generation serial entrepreneur of Nepal he and
his brother has formed this professional money transfer company in the year 2001. He
and his brother Hem Raj Dhakal co-founded the IME conglomerate of businesses. He
strongly believes in and adheres to the ethics of professional financial conduct and
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governance. Additionally, he has set an exemplary model for the successful merger and
acquisition of banks and financial institutions in Nepal. Mr. Dhakal’s visionary
leadership has contributed to evolve IME from its humble beginnings into a fast growing
conglomerate.

Mr. Dhakal’s leadership in different business chambers has contributed to creating a

business friendly environment in Nepal to expand domestic investment and attract
foreign direct investment. His public relations are far reaching among the government
and non-government sectors, diplomatic and business community. (Source:
https://imeremit.com.np)

The registered office of the IME Express is located at IME Express, Panipokhari,
Kathmandu, Nepal. With a legacy of more than 2 decades, IME Limited is the pioneer
company in the business of remittance solutions providers in Nepal, specializing in the
delivery of world class money transfer services to families and friends from around the
globe.

With a workforce of more than 5000 people from diverse backgrounds and cultures, they
are here to deliver the best service as they understand and respect customer’s money
transfer needs. They are having served millions of satisfied customers, IME takes pride in
transferring happiness to people around the world through its services and, they will
continue to do so.

Today, IME has global reach and having worldwide business partners present across the
globe enabling swift delivery of remittance services from more than 200 countries and
networks spanned over 1 million locations around the world. (Source:
https://imeremit .com.np/about)

IME has been introducing and nurturing innovation for delivering service excellent to
empowered customers and general public with the guiding principal of providing
solution to financial challenge. Now IME is herewith business-to-business (B2B)
oriented to service to empower organizations and business to digitally streamline towards
their operational excellent. IME biz brings the fin-tech array of IME Services –
remittance, insurance, banking, mobile wallet, IT, under a single root in B2B context to
not only ease our clients with their daily functions and operations but also to ensure
maximum efficiency. (Source: https://imeremit.com.np/business/)
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1.3 Objective of the Study

Each and every research is conducted with some objective or purpose. Puspa Trade &
Suppliers is carry out the business of remittance and other services. But the moto of this
study is to find out the details about the remittance carried out through professional
money transfer agency IME. They are having agency of other money transfer agency also
but IME is most preferred by the customers in general and most of transactions are done
by this agency through IME. Hence the objective of this field work are as follows:

- To analyse the commission on remit.

- To find out the incoming and outgoing transaction amount.
- To determine the no of remit transaction.

1.4 Rationale of the Study

Puspa Trade & Suppliers is a firm registered with the motive of carrying out the business
of remittance. Study report about remittance of this firm can be useful to the customers,
seeker of information about Puspa Trade & Suppliers and student who are studying in the
BBS level who are going to prepare project work in the future, they can use this report as
information. Rationale of the field study are as follow:
 It helps to increase our knowledge and ability.
 It helps to measure the transaction condition.

1.5 Review of Literature

Remittance is a transmission of money with the nation and outside the nation. Most of
the transactions are done in the local level to transfer of money to maintenance of
family, student and business transactions. The remittance send from foreign country to
Nepal is converted in to Nepali currency and payment to the relatives of sender or
receiver. Rate of conversion of foreign currency is depend upon the current market rate.
In the international currency of remittance there is always come the difference of
currency rate.

But in local transaction there is no matter of currency difference. Nepali rupees send and
received by both the parties. Transactions in Nepali currency are done within the
country. Foreign currency are involved, when the person gone for the foreign
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employment and travelling.

1.5.1 Conceptual review

When preparing this report, it was accessed books of different writers, reports of senior
students and search in web sites in electronic medium with the help of computer and
internet technology. Report is prepare on the basis of topic selected and assigned from
the college.

Collected data are interpreted and analyzed in table, graph, theoretical and analytical
method to make easily understand the report. Tabulate and graphical method is very easy
to understand to presented data.

1.5.2 Review previous work

A common theme in the remittances is that -other things being equal- households are
more likely to remit and to remit larger amounts if they have the financial capacity to do
so. This is documented in terms of a positive correlation between household income and
remittances, as well as full-time employment and remittances. Menjivar et al. (1998) find
that while home ownership is not correlated with the likelihood of remitting, it is
negatively correlated with the amount remitted. One interpretation is that home
ownership is associated with higher housing costs than with renting given insurance
costs, property taxes and maintenance thus leaving less money to send abroad.
Alternatively, individuals who purchase a home may be less likely to return to their
country of origin and, consequently, be less likely to remit.

The circumstances and characteristics of migration may influence remittance behaviors

in a number of ways, including the motivations for migrating, intentions to return to the
country of origin, the duration of time since immigration and the number of emigrants
leaving the source household.

Das and Chowdhury (2011) investigated long run relationship between remittances and
GDP of 11 top remittance-recipient developing countries including Nepal. They applied
latest developed econometric techniques, i.e., panel co- integration and pooled mean
group (PMG) approach. The results support a positive long run relationship between
remittances and GDP. However, the magnitude of the remittance-GDP coefficient is
quite small. Their result also implies that developing countries should formulate policies
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to divert this external resource into more productive sectors

Paul and Das (2011) conducted a study on Bangladesh (from 1979 to 2009, a relatively
liberalized regime) to examine the remittance-GDP interaction in both the long run and
short run with a comprehensive approach by applying unit root tests, co integration tests
and specially the vector error correction model to get the estimates on the co-integrating
vector and short-run dynamics. The Study finds a long run positive relationship between
remittances and GDP.

Rao and Hassan (2012) conducted a study on 40 high remittance recipient countries
using a System GMM panel data analysis. This paper analyzed the direct growth effects
of remittances and the growth effects of the channels through which remittances may
affect growth by treating as conditioning variables. It is found that while the evidence
supports the indirect effects of remittances, the direct growth effects of remittances seem
to be insignificant. The study finds that remittances indirectly facilitate economic growth
by increasing the ratio of Broad Money to GDP.

Jawaid and Raza (2014) is a study conducted by International Organization for Migration
on the effect of workers’ remittances and its volatility on economic growth of five South
Asian countries. This study investigated the effect of workers’ remittances and its
volatility on economic growth of five South Asian countries by employing long time
series data from 1975 to 2009. The Study applied time series econometric techniques
namely- unit root tests, co-integration test and sensitivity analysis by adding other
variables into the model and finds mixed results for different countries. The results
confirm a significant positive long run relationship between remittances and economic
growth in India, Bangladesh, Sri Lanka and Nepal, but a significant negative relationship
in Pakistan.

1.5.3 Research gap

In this study researcher has taken the data provided by proprietor and staff of the firm for
the month of Poush, 2077 of financial year 2077/78. Staff has provided information
about the service offered by them through their firm to the customer and rate of
commission charged by them to the customers in last one month and compare this
research with senior researcher who have already completed the BBS program and find
the following gap:
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 Previous researcher has included the data up to financial year 2071/72 to 2075/76

but in this report data for the month of Poush for the financial year 2077/78 there

is a time gap.

 Definition, literature, report and article of earlier report are different and my
inclusion is different from them.
 Comparing this report with the earlier student as sample, in the previous report
general introduction part is different due different heading, data structure are
different due to financial and changing of time trend.

1.6 Method of the Study

In this study data are collected from various sources like data material - web site of IME,
broachers, commission rate chart are used to collected data. Collected raw data are edited
tabulated and presented in the part of report.

1.6.1 Research Design

Before starting project work a brief project work cycle was made with the help of
supervisor and principal. A topic was selected. After conducting an orientation class
regarding the project a recommendation letter was provided by college for selected work
for the propose of information collection. Office of Puspa Trade & Suppliers was visited
for relevant information again and again from time to time, till the completion of project
report. All the relevant data, information, reports are accessed and study was conducted.

1.7.2 Population and sample

Sample data are collected from the office of Puspa Trade & Suppliers from broachers,
web site of IME, commission rate chart as a sample data collection. At the time of
collection of data visited the office of Puspa Trade & Suppliers Tikapur .

1.6.3 Type of data

To draw the conclusion on about the selected topic secondary data are taken in to
consideration. Data collected from data material broachers, web site of IME, commission
rate chart are secondary data. All most data are collected by visiting office and staff
located at Munuwa Road of Tikapur. On the other hand, the research report is prepared
 11

finally with the use of secondary data.

1.6.4 Data collection procedure

Pre-field activities

At the pre-field stage I select the topic “Remittance Analysis of Puspa Trade &
Suppliers”. In this stage I take some suggestion from principal, supervisor and faculty
member who guide about the project report.

On the field activities

At the second stage visited the office of Puspa Trade & Suppliers and meet the staff of
business firm who are engage in office management and operation and cross verify with
each other. According to the reply and reaction of staff data were collected.

Post field activities

Post data collection stage it was started to prepare project report with the help of
collected information. All the secondary data are used to complete the report.

1.6.5 Data collection tools (instrument)

Data were collected from use of data material - broachers, web site, commission rate
chart are used to extract the data. Mainly raw data are extracted from the material and
subsequently or at the using stage they will be edited to make presentation. Report is
prepared based secondary data.

1.6.6 Techniques of analysis

Collected data are analyzed and presented through few statistical tools like tabular form,
bar diagram, theoretical and analytical form. Data are presented in attractive and tenable
form to convey the reader of report.

1.7 Limitation of the Study

This report is relating to “Remittance Analysis of Puspa Trade & Suppliers”. It is a small
research limited to fulfillment of partial requirement of BBS 4th year program and may
not be applicable in general to all the industry money transfer agency, who are also
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engage in the same type of business. But the person who wants to refer he can gain some
knowledge. Limitations of the study are as follows:

 The field study mainly focus on one month financial year data for the financial year
2077/78.
 In this study limited tools and techniques are used.
 Study is based secondary data, authenticity is depend upon availability of data.
 Preparing report lot of time consuming and cost involved.
 This is only case study and conclusion drawn from study is limited and is not
applicable in general.
 This study is more specific relating to “Remittance Analysis of Puspa Trade &
Suppliers “ not even covered entire criteria of all the remittance agency.
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CHAPTER II
RESULTS AND ANALYSIS

2.1 Data Presentation

Data collected from various sources are presented, analyzed in tabular form, diagram,
theoretical and analytical form to make understandable to the reader of the report. Which
forms an important part of all academic studies, commercial, industrial and marketing
activities as well as professional practices. It is necessary to make use of collected data
which is considered to be raw data which must be processed to put for any use.

Data analysis helps in interpretation of data and take a decision or answer the research
question. Data analysis starts with the collection of data followed by sorting and
processing. Processed data helps in obtaining information from it as the raw data is non
comprehensive in nature. Presenting the data includes the pictorial representation of the
data by using graphs, charts, maps and other methods. These methods help in adding
visual aspect to data which makes it much easier and quick to understand.

Puspa Trade & Suppliers is carrying the business of providing remit as well as other
services like utility bill payment, aeroplane ticketing, transferring recharge like cell-
phone, dishome etc. They are acting as mediator between customer and professional
money transfer agency. Before acting as mediator, they have signed an agreement and
register to themselves with money transfer agency like IME, Prabhu Remit, Himal
Remit, City Express, GME, eSewa by depositing certain amount fixed by those agency as
security deposit.

IME is very popular money transfer agency which is mostly used by them as compare to
other agency. Most of the customer or 80% of the business is done by them with IME
Express. Which is a very convenient money transfer agency, mostly depending upon
foreign remit.

The collected data about incoming and out going remittance, commission receive in
inward and out-ward transaction carried out by Puspa Trade & Suppliers with mostly
preferred money transfer agency IME are presented in table and graph below for easy
understanding.
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Data presentation and analysis plays an important role in every field. A great presentation
can be a deal maker or deal breaker. Some people make extremely effective presentation
with the same set of facts and figures which are available with others. At a time people
who did all the hard work but failed to present it properly have lost important contracts,
the work which they did is unable to impress the decision makers. So, in order to get the
work done especially while dealing with clients or higher authorities presentation
matters. No one is willing to spend hours in understanding what you have to show and
this is exactly why presentation matters.

The total value of inward and outward remittance, commission on remittance done
through IME Express are presented in the following table graph for last one month:

2.1.1 Analysis of commission on remit

Following table show the commission charged by the Puspa Trade & Suppliers in the
month of Poush 2077. They are charging different commission amount in different value
of money.

Commission Slab in the month of Paush 2077

Sr. No. Commission slab Commission charged

1. Rs. 500 – Rs. 10000 100

2. Rs. 10,0001 – Rs. 25,000 200

3. Rs. 25,001 – Rs. 50,000 300

4. Rs. 50,001 – Rs. 1,00,000 400

Table No 2.1
(Source: Field Survey, 2021)

In the above table commission charged by Puspa Trade & Suppliers is shown in the
month of Poush 2077. When they are remitting rupees in the range of Rs. 500 to 10000
they are charging commission of Rs. 100 and range of remittance is going to Rs. 50001
to 100000. In this range they are charging commission of Rs. 400.
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No of Remittance Agency Held

Sr. No Name of the Money Transfer Agency
1. IME (International Money Express )
2. IME Pay
3. City Express
4. Prabhu Remit
5. Himal Remit
6. GME
7. eSewa
Table No 2.2
(Source: Field Survey, 2021)

In the above table total number of money transfer agency held by Puspa Trader &
Suppliers are shown. They are sending and receiving remit as per the needs and
convenient of customers from different place of Nepal and foreign remittance. They are
receiving 75% of total value of remittance from foreign country. Small amount is
transmitted by them in Nepal in the places there is no banking facilities till date.

2.1.2 Total incoming transaction and its value

In the following table slabwise total value of transactions and no of transaction done in
the month of Poush 2077. Total value of incoming domestic transactions is Rs.
5,19,000/- with total transactions 168 and total value of foreign transactions is at Rs.
4,56,000/- with total 90 transactions.

Total Incoming remittance transactions in the month of Paush 2077

Sr. Range of transaction Domestic Foreign transaction
No No of value No of value
transaction transaction
1 Rs. 500 –Rs. 5000 151 2,46,500 79 2,37,000
2 Rs.5001-Rs.20000 13 1,28,500 7 91,000
3 Rs. 2001-Rs. 50000 3 88,000 3 76,000
4 Rs. 50001-Rs. 100000 1 56,000 1 52000
5 More than Rs. 100000 0 0 0 0
Total 168 5,19,000 90 4,56,000
Table No 2.3
(Source: Field Survey, 2021)
 16

In the above table range of incoming transaction are shown. They have bifurcate the
transaction in Rs. 500 to 1,00,000/- The lowest value of transaction is Rs. 500/- and
highest value of transaction is Rs. 1,00,000/- They have done the highest value of
transactions more than Rs. 50000/- is one. In this range most of the transactions are done
in local level and small customer transmit the money for maintenance their family and
students. The value of domestic transactions is 5,19,000/- and foreign remittance is at Rs.
4,56,000/-.

Total outgoing remittance transactions in the month of Paush 2077

Sr. Range of transaction Domestic Foreign transaction

No No of value No of value

transaction transaction

1 Rs. 500 –Rs. 5000 39 1,83,000 0 0

2 Rs.5001-Rs.20000 29 1,73,000 0 0

3 Rs. 20001-Rs. 50000 16 3,26,500 0 0

4 Rs. 50001-Rs. 100000 3 1,52,200 0 0

5 More than Rs. 100000 0 0 0 0

Total 87 8,34,700 0 0

Table No 2.4
(Source: Field Survey, 2021)

In the above table outgoing transactions for month of Paush are shown. They are not
sending remittance to foreign country. They have done the local as well as national
transaction. The total outgoing transactions are 87 and total value of transaction is Rs.
8,34,700/-

Total value of outgoing remittance transactions in the month of Paush 2077

 17

350,000.00

300,000.00

250,000.00

200,000.00

value
150,000.00

100,000.00

50,000.00

-
Rs. 500 –Rs. Rs.5001- Rs. 20001- Rs. 50001- More than
5000 Rs.20000 Rs. 50000 Rs. 100000 Rs. 100000

Table No 2.1
(Source: Field Survey, 2021)

In the above figure in the vertical axis amount of remittance is shown and in the
horizontal range of remittance is shown. Highest amount of remittance is done in the
range of Rs. 20,001 to 50000/-. There is lowest remittance in the range of Rs. 1,00,000/-

2.1.3 Total remit transactions

Total transaction in the month of Paush 2077

Sr. No Name of money transfer agency No of transaction Percentage
1. IME (International Money Express ) 276 80.00
2. IME Pay 15 4.30
3. City Express 8 2.30
4. Prabhu Remit 6 1.75
5. Himal Remit 4 1.15
6. GME 2 0.57
7. eSewa 34 9.93
Total 345 100.00
Table No 2.5
(Source: Field Survey, 2021)
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In the above table no of transaction done through the money remittance agency by the
Puspa Trade & Suppliers. It has done the total 345 incoming and outgoing transactions.
Out of them most of the transactions are done through IME (International Money
Express). 80% business is done through IME by Puspa Trade & Suppliers.

Total Remittance transactions in the month of Paush with different agency

300

200

100

0
IME No of transac-
IME Pay City tion
Prabhu Himal
Express Remit GME
Remit eSewa

Table No 2.2
(Source: Field Survey, 2021)

In the above figure in the vertical axis no of transactions done by Puspa Traders &
Suppliers are shown and in the horizontal axis name of the remit agency are shown. The
highest no of transaction are done through IME and second highest are done through
eSewa.
Total domestic and foreign remit transactions in the month of Paush
Sr. Name of money transfer agency Domestic Foreign Total
No transactions transactions transactions
1. IME (International Money Express ) 192 84 276
2. IME Pay 15 0 15
3. City Express 5 3 8
4. Prabhu Remit 4 2 6
5. Himal Remit 3 1 4
6. GME 2 0 2
7. eSewa 34 0 34
Total 255 90 345
Table No 2.6
(Source: Field Survey, 2021)
 19

In the above table domestic as well as foreign remittance transactions completed through
different money transfer agency are shown. Total 345 transaction done in the month of
Poush out that 255 domestic transactions and 90 foreign transactions are completed and
remitted amount is collected and payment is made to the customers.

Domestic and Foreign transactions in the month of Paush with different agency

200

180

160

140

120

100
Domestic
80 transactions

60
Foreign
transactions
40

20

0
IME IME Pay City Prabhu Himal GME eSewa
Express Remit Remit

Table No 2.3
(Source: Field Survey, 2021)

In the above figure in the vertical axis domestic and foreign remittance transactions for
the month of Poush 2077 are shown and in the horizontal axis different money transfer
agencies name are shown. Customers are mostly prefer the to send via IME pay and local
small transactions are done in eSewa also. Local second highest done in IME pay.

2.2 Analysis of Result

It is appear from the record of Puspa Trade & Suppliers there is different slab of
commission depending upon range of amount. They are using total seven remit agency to
make more smooth to the work. They have clear the total incoming domestic transaction
 20

value of Rs. 519,000 /- containing 168 transaction and foreign incoming remittance of
Rs. 4,56,000/- of 90 transaction. In the month of poush 2077 they have clear outgoing
transaction value of Rs, 8,34,700/- containing 87 transaction in the month of Poush 2077.
They have done total 345 incoming, outgoing, and foreign remittance transactions in the
month of Poush 2077 through 7 remit agency.

2.3 Findings

Researcher has study about Remittance Analysis of Puspa Trade & Suppliers find the no
of transaction done in the month of Paush, 2077, remittance received and value of
transaction for each transactions. They are receiving foreign remittance. The value of
foreign transactions are high as compare to local transaction. They are charging
commission as per the instructions of transmitting agency. Following are the major
finding:
 They have done total 345 transaction in the month of paush incoming as well as
outgoing.
 Total value of incoming transaction is Rs. 9,75,000/- including foreign
remittance.
 Total value of outgoing transaction is Rs. 8,34,700/- in the month of poush.
 Different slab of remittance different amount of commission is applicable.
 IME is most popular transmitting agency, 80% business done through this
agency.
 21

CHAPTER – III
SUMMARY AND CONCLUSION

3.1 Summary

This part of the report writing is combination of all activities of entire chapter one and

two. In the first chapter meaning of remittance analysis, profile of Puspa Trade and

Suppliers, objective, rational and literature review. It helps to define and study the topics

and many writers’ view are express. Which are taken after consulting many books,

journals and reports etc. Main theme of the report writing or survey is depend upon

objective. Objective of the study lead all activities, which are depend upon availability of

data. In the first chapter of the report meaning of remittance, profile of remittance

organization, objective, rational and literature review studied. This report is prepared

under some limitation, otherwise it is difficult to analyze.

Chapter two is the part of presentation of data in tabular form, graphical presentation,

theoretical and analytical analysis of the data, which are reported in the report. Under this

chapter the secondary data are organized, presented and analyzed on table, graph, chart

and theoretical form to fulfill the need of report.

3.2 Conclusion

Puspa Trade & Suppliers is a firm registered under the private firm registration act and

carrying out the activities of receiving and sending remittance to the customer of one

location to another location of the country or in local level. It is a service industry and

providing services relating money transmission at various places of Nepal. They are

charging certain amount as commission towards their fees, which is shared by

transmitting agency and Puspa Trade & Suppliers.

Profit is calculated at the end stage, trail balance, profit & loss are prepared considering

all the income and deducting all the expenses like direct expenses, administration,
 22

finance and selling expenses. After that balance amount is called net profit of the firm

which is value addition to the capital of the proprietor and his hard working towards the

work carried out. Which come in the sharing of share capital after deducting expenses,

taxes and dues to the government.

Every year business firm prepare the statement of financial position i.e Balance Sheet

and Profit & Loss Account. These statement are the end result of the firm, in which profit

and loss is determined at the end. Records are maintain for addition and deduction to

assets and liabilities.

Statements of financial position and income statement are prepared after incorporating

detail of income, expenses, assets and liabilities every year filed with government,

regulatory authority like Inland Revenue Department (IRD). Before filing with those

authorities, statement are audited by qualified chartered accountant as auditor or

registered auditor of the firm by certifying all the financial and administrative activities,

by issuing auditors certificate, popularly know as Audit Report by signing and stamping

by himself. Each and every entry from the books of account are checked by him, and

observe them in legal, financial and taxation aspect.

 23

BIBLIOGRAPHY

o Adhikari, D.R. & Pandey, D.L. (2067). Anusandhan Paddati. Kathmanud: Sunrise
Publication(P) Ltd.
o Broachers of Puspa Trade & Suppliers, Tikapur, Kailali
o International Money Express web site: https://imeremit.com.np
o Joshi (1989) A study of financial performance of Commercial Banks.
o Joshi Padam Raj (2015), Fundamental of Financial Management; Asmita
Publication
o Kothari, C.R. (2009), Research Methodology, Method and Techniques. New
Delhi: New Age International Publishers.
o Panta, P.R. (2006 B.S.) Social Science Research and Thesis Writing (5th ed).
Kathmandu: Buddha Academic Enterprises
o Weikipedia web site: http://weikipedia.com
 24

APPENDICES
Commission Slab
Remittance Slab Commission charged

Rs. 500 – Rs. 10000 100

Rs. 10,0001 – Rs. 25,000 200

Rs. 25,001 – Rs. 50,000 300

Rs. 50,001 – Rs. 1,00,000 400

Total transaction in the month of Paush 2077

Sr. No Name of money transfer agency No of transaction
1. IME (International Money Express ) 276
2. IME Pay 15
3. City Express 8
4. Prabhu Remit 6
5. Himal Remit 4
6. GME 2
7. eSewa 34
Total 345
 25

PUSPA TRADE & SUPPLIERS

Tikapur, Kailali

Ref. No. Date: 2077/10/24

SUBJECT: TO WHOM IT MAY CONCERN

I am very glad that Mr. Mangal Bahadur Shahi of BBS 4th year student of Birendra
Bidhya Mandir Multiple Campus, Tikapur, Kailali, has collected the information with us
to prepare his project report.

We heartily wish him bright future.

..............................
Manager