corporate governance and importance

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A Research Report on
“Corporate Governance and Rise in Poultry Products”
Prepared by
Santosh shrestha
Submitted to:
Mr. Amrit Basnet
Balmiki Lincoln College
Lincoln University
In partial fulfillment of the requirements for the degree of
Bachelor in Business Administration
Birtamode , Jhapa

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Acknowledgement
I would like to express my special thanks of gratitude to my teacher Mr. Amrit Basnet who gave
me the golden opportunity to do this wonderful project on “Corporate Governance and Rise in
Poultry Products” which also helped me in doing a lot of Research and I came to know about so
many new things I am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.

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Table of Contents
Corporate governance ..................................................................................................................................3
Research on Rise in Poultry Products ........................................................................................................2-3

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Corporate Governance
Corporate governance is the system of rules, practices, and processes by which a firm is
directed and controlled. Corporate governance essentially involves balancing the interests
of a company's many stakeholders, such as shareholders, senior management executives,
customers, suppliers, financiers, the government, and the community. It is actually
conducted by the board of Directors and the concerned committees for the company’s
stakeholder’s benefit. It is all about balancing individual and societal goals, as well as,
economic and social goals.
Importance of corporate governance
 Corporate governance is an important aspect of the business
 Corporate governance helps in making the decision process
 It helps to clearly explain to the board, the stakeholders and the shareholders what
their duties and responsibilities are within the company
 Good corporate governance helps in improving the economic efficiency

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RESEARCH ON RISE IN POULTRY PRODUCTS
On the recent time the price of the poultry products has been increasing day by day. It has
created an impact all over the country. The retail price of chicken has increased to Rs 410
per kg. Earlier last week, Nepal Chicken Sellers Association had decided to raise the
price by Rs 15 per kg to Rs 360 citing high mortality of chicks during winter. Last year
during February, the price of chicken was around Rs 325 per kg. similarly the price of
eggs has been increased to Rs 320 per crate (30 units). Similarly, price of mid-sized
eggs have been increased to Rs 300 per crate.
There are many reasons which has lead to the increased in the price of poultry products.
Some of them are listed below:
 The grains for chickens are imported from India and the government has increased
the taxes which becomes expensive for farmers.so due to expensive grains farmers
has left rearing chicken
 The six million chicks destroyed during chicken holiday have no affect in
increasing its price
 Poultry entrepreneurs and hatcheries celebrated chicken holiday for 10 days. It
has created shortage in the supply of chicks to the farmers
 There is less number of farmers rearing chicken which has created low supply in
the market and this is the reason behind increase in price of chicken
There are some factors who are responsible for situation in increasing the price of
poultry products. It is mainly due to following situation:
 Government is responsible for the hike in the price due to increase in the tax for
the grains and feeds which are required to farmers for feeding the poultry.
 Due to excessive amount of available of chickens in the markets during the month
of festivals has leads to farmers not to get the fair price from the buyers. It has lead
in demotivating the farmers for doing the poultry business
 Suppliers are also responsible for the current situation. To increase the price of the
poultry there has been less amount of supply of the poultry products in the markets
 There is less number of hatcheries industries in Nepal. It has leads to the shortage
of chicks and leads to the current situation

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It is the current situation which can have a great impact in the economy sector as well as
leads to the problem of not meeting the demand of the markets in different places of
Nepal. If these problems are taken easily then it can cause serious problems. It needs to
be minimized and solved. The remedies which can be implemented to minimize the
current situation are listed below:
 Fair price should be given to the farmers to motivate in doing the poultry business
 Government needs to minimize the amount of taxes
 To meet the demands ands to maintain the price of poultry products there should
be establishment of hatcheries industries in different places of Nepal
 suppliers needs to be punished if they are found in doing less amount of supply in
markets for hiking the price