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1.3 THE RESEARCH QUESTIONS 1. What is the financial health of the union in performing the financial activities in line with the WOCCU proposed standards? 2. What is the sign of growth trend of the union in relation to its financial performance in profit, members share capital, institutional capital, total assets, loans, savings, and membership? 3. How is the union efficient in its saving mobilization strategies? 4. How is the union effective on its loan service and credit administration? 1.4 OBJECTIVES OF THE STUDY The general objective of the study is to analyze the financial performance of Gohe cooperatives saving and credit union. The specific objectives of the study are: 1. To check up the financial health of the union in performing the financial activities. 2. To determine the sign of growth trends of the union in terms of profit, members share capital, institutional capital, total assets, loans, savings, and membership. 3. To gauge the efficiency of saving mobilization strategies of the union. 4. To examine the value of loan service of the union. 1.5 RESEARCH METHODOLOGY This study was conducted in ‘Gohe’ saving and credit union found in Bure ‘Woreda’ district. Data for the study were collected from primary and secondary sources. The Primary data were collected through survey, in depth interview and FGD. The primary data were analyzed in simple descriptive stastics from and qualitatively. All general assembly members of the union were selected from each primary level cooperatives and total of 132 member respondents were taken as sample size from the union to get the required information on saving mobilization and loan services of the union to conduct the survey. The secondary data were collected from audited financial statements of four years and portfolio reports which were analyzed by using WOCC model with references to PEARLS and to measure the financial health of the union by ratio analysis. The WOCCUs proposed standards of excellence were used as measure of excellence and the software PEARLS monitoring system were used for analyzing based on the data appropriateness. 1.6. RESULTS AND DISCUSSION Regular health check-up has a supreme to maintain the confidence of members in financial system and activities of their union; to protect the interest of members, depositors, lenders, and any other stakeholders in the union; and to detect the adverse effect of various financial risks on the financial performance of the union. Due to the fact that, Health of an individual Financial institution is a function of multiple factors such as liquidity position, earnings and cost, solvency, capital adequacy, asset quality, financial structure and growth trends of the union results on these key indicators are presented in tabular form to check up the financial healthiness of Gohe cooperatives saving and credit union in the following sections one by one and WOCCUs model was used to interpret and assess the financial performance of the union in a meaningful manner. www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 60
Table.1. Liquidity of Gohe Cooperatives Saving and Credit Union (Years in E.C) Indicators of Liquidity Proposed 1998 1999 2000 2001 standard L 1 :Loan Outstanding /Total Savings 60%-70% 66.5% 215% 64% 298% deposits L 2 :Liquidity Reserve/Saving Deposits 10% 0.00% 0.00% 0.00% 0.00% L 3 :Non Earning Liquid Assets / Total Max.5% 20.41% 0.68% 78.03% 2.96% Assets L 4 :Current Assets / Current Liabilities 1:1 2:1 1.7:1 1.9:1 1.4:1 Source: Worked Out From Audit Reports of the Union The result loan to saving (L 1 ) of Gohe cooperatives saving and credit union in the year of 1998 and 2000 (Table 1), indicates the union was in the position to the proposed standard which reflects the union was funding loans to members from the balance sheet accounts i.e. from members saving deposits, where as in the year 1999 and 2001 the union was not able to fund members loan from members savings deposits and shares which forced the union to go for external credit and the union was not in a position to meet the required standard showing lack of sustainable financial services to finance loan from members savings deposits. The liquid reserve requirement (L 2 ) is out of the WOCCUs proposed standard. The WOCCUs model proposed to maintain saving deposits as liquid assets a minimum of 10% after paying all short-term obligations (30 days and under) and Gohe cooperatives saving and credit union did not maintain such liquidity reserve in any of the study periods (Table 1). This suggests Gohe cooperatives saving and credit union couldn’t meet cash needed for withdrawals, however, this reflects also the union able to avoid the opportunity cost lost on idle liquid assets due to the fact that funds in checking accounts and simple savings accounts earn negligible returns, in comparison with other investment alternatives. Investment in non-earning liquid assets increases the liquidity position of a cooperative but it does not earn anything. So, investment in such assets should be minimal. As we can see here in the result Table 1, non-earning liquid assets to total assets (L 3 ) indicates, in the year 1999 and 2001 Gohe cooperatives saving and credit union was in line with the proposed standards or WOCCUs model which suggests the union have no any problem of liquidity and problem of idle funds where as in the study years of 1998 and 2000 the union could not perform in line with the proposed standards though, the liquidity position is good there was too much investment in non-earning assets this indicated unhealthy functioning on earnings in these periods. The percentage of non-earnings assets to total assets of Gohe cooperatives saving and credit union in the year 1998 and 2000 was far beyond the proposed standards which increase the liquidity position of the union that is in the union cash has occupied the considerable amount of non-earning liquid assets in the year 2000 and in the year 1998 checking account (current account) which is another non-earning liquid assets occupied the larger portion. The non-earning assets yield nothing and have their own impact on L 3 as well as the earnings or profitability of the union. The considerable amount of such nonearning liquid assets threats the liquidity position of Gohe cooperatives saving and credit union further. L 4 measures the adequacy of the liquid current assets to satisfy the current obligations request. L 4 is showing during the study period the union was able to meet its current obligation which goes in line with the proposed standard but there is also too much investment on current assets of the union. Overall, liquidity position is showing unhealthy condition according to WOCCU proposed standards; Gohe cooperatives saving and credit union may fail to satisfy the deposit withdrawal request because the union has no any liquid reserve funds to come across such request. www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 06, April-2013 Page 61
Page 2 and 3: Table of Contents Articles PERFORMA
Page 4 and 5: servicing, and the policies not mee
Page 6 and 7: The Self-Help Group members get inc
Page 8 and 9: Are female workers more productive
Page 10 and 11: For the purpose of including explan
Page 12 and 13: several different, competing logist
Page 14 and 15: Fisher, R.T. (2001), “Role stress
Page 16 and 17: A Comparative Study of NPA of State
Page 18 and 19: processes. Instead of fixing target
Page 20 and 21: Agriculture Crisis and Sustainable
Page 22 and 23: Table 1. World Cereal production ,
Page 24 and 25: Expanding biofuel production The ex
Page 26 and 27: percent of the world’s population
Page 28 and 29: OECD (Organisation for Economic Co-
Page 30 and 31: It can provide the earnings needed
Page 32 and 33: The incubator will also work toward
Page 34 and 35: factor. This is not an easy proposi
Page 36 and 37: ROLE OF LOCAL SELF GOVERNMENT IN LE
Page 38 and 39: During the last season red onion fa
Page 40 and 41: Table Mch2 Coef. Std. Err Z P>/Z/ A
Page 42 and 43: lack of capital. The local farmer o
Page 44 and 45: It may be seen that alleviation of
Page 46 and 47: Table - 2 Progress under Bharat Nir
Page 48 and 49: References Chandrasekhar, B P., et
Page 50 and 51: existing cooperative legislation, r
Page 54 and 55: Table 2: Earnings and Cost Allocati
Page 56 and 57: have an adequate amount of capital
Page 58 and 59: programs and the union was doing on
Page 60 and 61: total assets to other key areas, it
Page 62 and 63: esponded by (7.6%) of the members.
Page 64 and 65: management; Gohe cooperatives savin
Page 66 and 67: Significance of asset quality of St
Page 68 and 69: iii) iv) Doubtful Assets:- a) Doubt
Page 70 and 71: atios and solvency ratios are taken
Page 72 and 73: Ratio of around 3% during 2007-08,
Page 74 and 75: sufficient to draw an inference in
Page 76 and 77: The observed R 2 and F statistics m
Page 78 and 79: Board Composition, Ownership Struct
Page 80 and 81: size as well. During our study it w
Page 82 and 83: standards prevailing in the country
Page 84 and 85: The procedure produces two tests of
Page 86 and 87: hoc test for pair wise comparisons
Page 88 and 89: e said that the board size affects
Page 90 and 91: high-tech small and medium-sized en
Page 92 and 93: Table no.8 - Multiple Comparisons T
Page 94 and 95: Abstract Corporate Social Responsib
Page 96 and 97: the participation of various level
Page 98 and 99: Supplier Relations As stakeholders
Page 100 and 101: CSR initiatives of companies should
Page 102 and 103:
Corporate Social Responsibility Pra
Page 104 and 105:
2011, this district received surplu
Page 106 and 107:
In the case of marginal farmers and
Page 108 and 109:
Findings From the above analysis it
Page 110 and 111:
2. Innovation: Meaning and Dimensio
Page 112 and 113:
data appropriately. Inferences were
Page 114 and 115:
The regression analyses as shown in
Page 116 and 117:
Role of Self-help Group in Socio-ec
Page 118 and 119:
10% for women and men respectively
Page 120 and 121:
MoRD has been constantly reviewing
Page 122 and 123:
76.6% units were found to be existi
Page 124 and 125:
10.Timely release of adequate loans
Page 126 and 127:
Standard of living of Rural Fisher
Page 128 and 129:
Table 1 denotes the infrastructure
Page 130 and 131:
FISHING METHODS USED BY DIFFERENT A
Page 132 and 133:
CONCLUSION Most of the fisher folk
Page 134 and 135:
Objectives: The following objective
Page 136 and 137:
Policies of the Government will hav
Page 138 and 139:
Wastage Schedule (Onion) Sl.No. Pri
Page 140 and 141:
At the end of 2008 the entire world
Page 142:
Conclusion: 9. The inflation can be
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