BEED INSIGHTS Issue 05
December 2016
The year 2016 has been a challenging year for Nepal. For beed, it
IN THIS ISSUE
has been one of the busiest years so far. We ventured into Cambodia after winning a global bid with UNCDF. Trips to Rwanda continued while engagement in Bhutan remains, and
Why you should be a Chartered Accountant in A Management Consulting Firm! Shikshya Gyawali
A Beginners Guide for Investors in the Nepali Capital Market Rojesh Bhakta Shrestha
Digital Detox: Exploring mindfulness and awareness Sujeev Shakya
Development Research in Nepal: How Do We Get It Right? Tejaswee Shrestha
Cambodia, Nepal, Rwanda – Lost opportunities amidst shared commonalities Sudip Bhaju
Nepal continues to be the focus of operations. beed continues to believe in the potential of Nepal and also hopes that some of the ideas that germinated in 2016 will see
movement in 2017 as some clarity on larger political issues as well as economic stability will be witnessed. Lastly, we would like to wish all our readers a wonderful holiday season and a very Happy New Year!
commercial
or
economic
for
businesses, these problems are potential issues that can place businesses at cross roads with the law. Be it the requirement of businesses
to
accounting
have
system
a
sound
that
can
accurately record their financial transactions;
maintaining
the
sanity of their books of account, or the need to devise a tax efficient business structure and defend their tax positions before statutory authorities; CA’s are the best minds that management consulting approaching
WHY YOU SHOULD BE A CHARTERED ACCOUNTANT IN A MANAGEMENT CONSULTING FIRM!
better
growth
avenues. Management consulting
firms can offer when it comes to analysis of business processes.
firms have proven to act as a significant stimulus for businesses,
Furthermore, matters on taxation
but
and
its
success
is
directly
compliance
requires
a
proportional to the quality of its
systematic approach coupled with
team; which usually comprises of
patient official communication with
individuals specializing in business
government counterparts. CA’s, by
management, technical experts
virtue
and Chartered Accountants (CAs).
nurturing and strenuous articleship
Herein, I have discussed some of
training, are equipped to execute
the skill sets that CA’s bring into
such
management consulting firm.
smoothest manner possible; which
of
their
professional
complications
in
the
is not very convenient for non-CA
SHIKSHYA GYAWALI
members
of
a
management
In today’s world, businesses need
CA: BEST FIT FOR STATUTORY AND COMPLIANCE WORK
innovative ideas to survive. The
Chartered
are
Apart from this, business analysis
complex nature and speed of
statutorily denoted experts in the
demand more numeric data. Be it
business operations, and market
field of accounting, auditing and
analysis of performance ratios,
expansion
taxation.
of
identifying valuation keys or impact
competition among businesses. In
practice and knowledge lies in
of numbers in financial statements;
this scenario, partnering with a
these fields; which are often the
numbers are what matters the
good management consultant can
key areas where businesses seek
most for entrepreneurs. Even in
prove to be quite beneficial for
help from consultants. While all
this facet, management consulting
strengthening
other
firms prefer CA’s who can interpret
has
ensured
structures
fierce
and
consulting firm.
CA’S ARE NUMERATE
Accountants
Their
problems
core
are
area
either
these numbers for businessmen. So
communicators,
While CA’s have their
when you want a valuation report or do not understand what your
report
writers or fine presenters.
own set of skills that
profit and loss statement says, or
better
they excel in, there are a
In addition to their unabashed
where the profits go in a particular
few areas where they
technical knowledge, CA’s need to
situation, you know the best man in
need improvement, and
work an extra bit to be at par with
for that matter, you want to know
the team your client can speak to is
business school graduates that
a management
a CA.
PRESENTATION AND REPORT WRITING: NOT A CA’S FORTE
demonstrate
well
versed
consulting position is
presentation and writing skills to
exactly where they can
create a niche for themselves in a
hone these skills.
consultancy firm. This would not only extend the scope of available
While CA’s have their own set of
opportunities on offer for CA’s; but
skills that they excel in, there are a need
it comes to presenting their work or
also take management consulting
improvement, and a management
doing elaborative report writing,
services in Nepal to another level.
consulting position is exactly where
CA’s often fall weak. In addition,
they can hone these skills. For
efficient and smart marketing is an
instance, CA’s lack the skill of
essential quality for a management
presenting insights in the best
consultant; which again is not a
manner which is a pre-requisite for
CA’s forte. While such skills depend
being a successful management
a
consultant. While they have the
business schools have proved that
best access to every nitty gritty of
they can be nurtured as well.
the technical aspects, CA curricula
Management
does not incorporate marketing and
thereby be the playground in which
presentation training; except for a
CA’s explore and work on these
few boring sessions. Thereby, when
skills; emerging to be effective
few
areas
where
they
lot
on
personal
capacities,
consulting
can
SHIKSHYA GYAWALI
A BEGINNERS GUIDE FOR INVESTORS IN THE NEPALI CAPITAL MARKET ROJESH SHRESTHA
My
professor
for
with the best of mentors and
the number of merchant bankers
colleagues to get good hands on
and
experience.
The
stock
companies & an overwhelming
market,
realized
highly
participation of investors in the
irrational, and fundamentals and
primary market. Today the daily
analysis are of minimal help. The
average market turnover stands at
size of our secondary market was
NPR
very small back when I started off;
increasing volume has made the
wherein a handful of investors
market more efficient and liquid,
could
the
decreasing chances of share price
market; which had an average
manipulation, while the capital
daily turnover of only NPR 20-30
market
million.
opportunity
I
easily
Nepali is
manipulate
Securities
entry
of
600-700
diversify
today for
hydropower
million.
This
offers
great
investors
their
to
investment
Analysis and Portfolio Management
While
certificate
requirements. If you have not
class in the US, once asked me in a
management was a laborious and
ventured into Nepali capital market
humorous way, “Will you be
tedious
portfolio
yet and want to participate and
managing penny stocks in your
management services in the past,
reap the benefits provided by the
home country someday?” A few
the
market,
years after this, I joined Nepal’s
digitization
first
operations
operational
Management
Portfolio
Company,
physical part
recent
of
streamlining of
share
into
and
market
full-fledged
beed
dematerialized trading, brings with
managing
it efficiency that provides a key
below
are
the
key
information which should help you to begin.
Portfolio
1. GET STARTED: OPEN A DEMAT ACCOUNT
(PMS).
Opening a dematerialized (DEMAT)
something which I wanted to
However, our stock market has
account at one of the Depositary
pursue in future.
evolved over the years with the
Participant (DP) licensed by the
opening of more stock brokering
Central Depository System and
After a few days of joining, I
offices, entry of mutual funds and
Clearing
realized that I had a great team
credit rating agencies, increase in
prerequisite to participate in both
invest.
I
was
not
portfolios on the first day itself, but
advantage
for
I was pretty excited to begin
Management
Services
Limited
(CDSC)
is
a
primary and secondary market.
the sole secondary market; and its
platforms. Once you know the
Most commercial banks, merchant
mobile based application is a great
primary issues are out, you can
bankers and stock brokers provide
source to get hands on information.
read their prospectus to see their
such services. If you already own
There are many other popular
detail information such as; past
some stocks in your name then you
websites that provide constant
and projected performance, &
can give your DP to dematerialize
updates about the capital market
management amongst others. You
your physical share certificates into
such as; Share Sansar and Mero
can also look at their credit rating
dematerialized shares. The DEMAT
Lagani. Furthermore daily national
provided by a licensed credit rating
account is similar to a bank account
newspapers, websites of merchant
agency before making the decision
which debits and credits the shares
bankers and credit rating agency -
to invest.
you sell or purchase. Most DP’s also
icranepal.com - also provide good
provide clients with facilities to
information.
check their DEMAT account status
3. PARTICIPATE IN THE PRIMARY MARKET- APPLY IN PRIMARY OFFERINGS
online as well.
The risk is lower when
4. PARTICIPATE IN THE SECONDARY MARKET– OPEN A TRADING ACCOUNT AT A STOCK BROKER OFFICE All the stocks offered via primary
One of the best opportunities to
market are listed in the secondary
participate in the capital market is
market i.e. Nepal Stock Exchange
primary market as you
to apply for primary offers in the
(NEPSE); currently there are 231
get an opportunity to
primary market such as; Initial
companies listed in the stock
buy shares at a lower
Public Offering (IPO) or Further
exchange. The secondary market
Public
Most
provides the platform to sell the
companies offer primary issues to
shares you hold or purchase new
purchasing those shares
the general public at face value of
shares from the market. The share
in the secondary market
NPR 100 per stock, or at a premium
price of these listed companies
once they are listed.
based on their valuations. The risk
and the value of NEPSE Index
is lower when you purchase in the
changes every day based on total
primary market as you get an
demand and supply of shares in
2. KNOW THE MARKET
opportunity to buy shares at a
the market.
To get started in the stock market,
lower
it is essential to first understand
purchasing those shares in the
If you wish to get involved in the
how
secondary market once they are
secondary market, you will need to
listed.
for
open a transaction account at a
sole
opportunities to participate in the
stock broker’s office. There are
regulator of capital market is a
primary offering of mutual fund
currently 50 stock brokers licensed
useful
schemes which can be a beginning
by NEPSE while there are a few
point.
stock
you purchase in the
cost as compared to
the
Securities
market Board
functions. of
(www.sebon.gov.np);
source
for
Nepal
the
primary
information. Its website provides
Offering
cost
(FPO).
as
Also
compared
look
out
to
broker
offices
outside
Kathmandu. Once you open an
information on various securities issues
account with a stock broker, they
upcoming public issues amongst
generally comes out in national
will provide you with a unique ID
others. Similarly, the Nepal Stock
newspapers
Exchange
announced
laws,
investor
education,
and
(www.nepalstock.com)
News
about
primary and
on
are
widely
code via which all the transactions
other
media
in your name will be executed.
capital gain tax of 5% if applicable and performance fees while these
while making sales.
services
Once you open an account with a stock broker, they will provide you with a unique ID code via which all the
5. STILL CONFUSED- SEEK A PROFESSIONAL HELP If you are still confused and less confident
about
entering
the
market or you do not have time,
transactions in your
energy and resources, do not
name will be executed.
worry as there are number of professional
licensed
Portfolio
Management Companies such as beed invest providing you with a full To make a purchase or sale order
range of products and services
you will simply have to call your
under
stock brokers or visit their office to
Services (PMS).
Based on your
place order, make sure you have
investment
goals
the shares in your DMAT account
expectations,
before you place a sale order to
managers
your stock broker. The stock broker
matching your risk appetite and
charges some commission as a
invests in the capital markets on
brokerage fee for each transaction
your
while you have also have to pay a
managers charges minimal annual
Portfolio
Management
portfolio
develops
portfolios
The
portfolio managers develops portfolios matching your risk appetite and invests in the capital markets on your behalf.
with
the
the capital markets. Moreover, you can also handover you existing portfolio
to
these
portfolio
managers for restructuring and further management. All in all, as the stock market is constantly evolving and getting technical, retail investors are highly advised to seek professional advice and avoid making investments on herd mentality - invest wisely!
portfolio
Based on your investment goals and expectations, these
you
opportunity to grasp the benefits of
and
these
behalf.
offer
ROJESH SHRESTHA
DIGITAL DETOX: EXPLORING MINDFULNESS AND AWARENESS SUJEEV SHAKYA Gadgets have taken over our lives. E-habits
have
There
detox, I was also keen
nothing to read or write as the
to be a part of this
were
no
gadgets
and
point of the retreat was to ensure that the mind does not wander. All
retreat as I have been
in all we were to do nothing; an
exploring the theme of
extremely difficult task for a mind
Buddha as a Coach, in
that is used to doing so much is
search of mindfulness,
suddenly asked to do nothing. Even the eyes were not allowed to
awareness and
wander and we were to keep
presence.
visual contact within three feet. Meanwhile eyes needed to be half
so
4am at the sound of a ringing bell,
closed; very much like the images
entrenched into our day to day
followed by thirty minutes of
of Buddha, and we were to keep
lives, that people are known to face
getting ready and into our robes.
silent, and not even talk to each
withdrawal and distress on being
Accommodation and bathrooms
other. From day three onwards,
cut off from gadgets and internet.
were
cleaned
we were allowed to speak while
Personally I was keen to figure out a
communally among the attendees.
sharing our experiences with the
way to get Digitally Detoxed and
At 4:30am, we had to show up for
teacher.
spend
gadgets.
a walking meditation, and then
then
from 5am the schedule alternated
FAMILY IS WHAT YOU ARE FOR
committed to a ten day meditation
between walking meditation and
Whenever I have traveled in the
retreat with this intent.
sitting mediation every hour till we
past,
retired at 10pm. Two meals were
platforms have ensured that I have
served in a day, one at 6am and
been able to keep in touch with
The retreat I opted for was a rare
the other at 11am; as under one of
my family on a perennial basis, be
one that combined meditation
the disciplines one should refrain
it through phones or messages on
along with being ordained as a
from eating after noon.
time
Challenging
become
Apart from the digital
without myself,
I
THE DEMANDING SCHEDULE
monk. It was organized on the occasion of the 78th birthday; or 1000 moons of the venerable Jnanapurnika Mahasthavira. Apart from the digital detox, I was also keen to be a part of this retreat as I have been exploring the theme of
Buddha as a Coach, in search of mindfulness,
awareness
and
presence. The schedule of the retreat was demanding; with days beginning at
shared
and
digital
communication
social media platforms. During the retreat, I did not miss work, gadgets or talking, but I did miss my family a lot despite being just over a kilometer away from home. Many questions rolled over my head as I emerged out of the retreat. I longed to see my family and be with them. On the penultimate day, when the vow of silence was broken and I could just see them, I realized that I had
our awareness, whether it is the
Change as people will be doing
never felt happier in life. It is these
noise we make while eating, the
less harm to nature and
little things that drive us and
noise our slippers make while
learning to be content.
perhaps not the big ones I thought
walking or the way we react to
that are important in life. This
other people snoring. That is
With unprecedented advancement
moment made me realize my
simply the meditative practice we
in technology the interconnected
priorities and the importance of
need to build; simple sounding,
world
other little things that we often
but so tough to execute.
constantly through some medium
forces
us
to
engage
or the other; more than we ever
take for granted.
MORAL COMPASS
have in the past. Just being aware
BUILDING AWARENESS
At the graduation Chyoki Nyima
of our deeds, our wants, our greed
In books on the subject mediation
Rinpoche; meditation master and
and being able to distinguish what
is described as an experience
renowned Buddhist teacher, spoke
is necessary and what is not makes
where you walk while you walk,
on
a world of difference in our
eat while you eat and sleep while
precepts; i.e. to abstain from
you sleep. On that note, this
harming living beings, take what is
retreat helped emphasize how we
not given, sexual misconduct, lying
are often completely unaware of
or gossip and intoxication, laid
what we do, and how we do it.
down by Buddha can make the
One of the key takeaways for me
world a different place. If those
was to be aware of every moment
five percepts are followed:
how
following
five
basic
individual lives.
that we are living- from the time you open your eyes in the morning
to the time you shut your eyes at night.
We
do
hundreds
of
There will be no war; there will be peace.
There will be no greed; there
mundane tasks every day, and we
will
just need to be aware of what we
satisfaction.
do. And ultimately everything that we do, hear or see helps to build
be
gratitude
and
There will be no need to discuss the impact of Climate
SUJEEV SHAKYA
DEVELOPMENT RESEARCH IN NEPAL: HOW DO WE GET IT RIGHT?
mind. What happens as a result is
elaborating
that the planning and design of the
Recommendations
should
research process is such that the
SMART:
Measurable,
study outcomes do not align with
Attainable,
the objectives.
based for it to be efficient and
It is therefore essential to spend some crucial time setting specific
on
Specific,
them. be
Realistic and Time
impactful.
objectives and goals, as without
DO YOUR HOMEWORK
clarity in these areas in the initial
In my time working in this arena, I
stages, researchers who go to the
have
field to obtain data often fall into
objectives and research design of
Development research in Nepal has
the traps of becoming greedy and
various
gained tremendous popularity in
trying to know everything; thereby
projects tend to be relatively
the last decade; especially given the
not focusing on what is actually
similar
sudden increase of not-for-profit
needed for the research to fulfil its
organizations
organizations working for various
objective. Consequently, it gets
haphazardly
social
TEJASWEE SHRESTHA
causes
empowerment generation
for
to
each
research
other.
Also,
sometimes start
a
research
project just to meet the financial
or
income
solutions to a problem that they
deadlines
themselves
agencies. It is therefore essential
the
poor.
By
and
betterment. While some of them have been successful in achieving its objectives, others have largely failed to make the intended impact. In this article, I have tried to explore some reasons as to why some of the development research in Nepal have failed to make the impact that it ought to.
do
not
know
or
TRIED AND SMART! While
TRUE:
THINK
through
recommendations
provided
the by
donor
the
existence,
usability
of
viability
research
and
projects
each penny of the donor money is spent wisely.
projects carried out in Nepal, I
If done correctly, development
realized
researches
that
they
are
not
should
produce
actionable enough. And sometimes,
findings that alter the economic
even when they are actionable
and social welfare of the society
enough, no solid measures are
along
taken by concerned authorities,
institutional changes.
pointless. Also, researchers often
development research in Nepal is
fall in the trap of providing multiple
the lack of a clear objective or
recommendations without weighting its
vision
pros
&
cons
and
with
fostering
practicality.
Development researchers sometimes
Therefore, while recommending
set
before
policies and action plans, it is best
conducting the research, and do
to think and work smart by
not have a definite objective in
identifying the three most relevant
goals
the
some of the development research
The most common problem with
work.
by
before initiating the project so that
flipping
thus, making the whole study
beginning
set
to do proper homework to check
understand.
AIM FOR THE GOAL
broad
development
the
very difficult for researchers to find
development
very
that
women
research that is undertaken for
before
realized
like
development research here, I mean social
also
and practical recommendations and
TEJASWEE SHRESTHA
the
CAMBODIA, NEPAL, RWANDA –
bombings
&
Khmer
rouge
economic factors like exports, per
brutality; which tried to enforce a
capita GDP and unemployment
utopian ideology of communism in
rates.
these countries. These events led to
huge
economic
losses,
thousands of death, and often
AGRICULTURAL ECONOMIES DEPENDENT ON FOREIGN AID
starvation which instilled a sense
All three countries are largely
of fear in all three countries. What
agriculture
is interesting, however, is the
slowly moving on to become
development that Rwanda and
service
Cambodia have experienced post
currently dependent on foreign
the end of such regimes vis-Ă -vis
aid; with almost 30-40% of national
Nepal.
budgets backed by aid. Rwanda and Cambodia have used political
work on an annual basis, and we
RWANDA AND CAMBODIA: PRESENT
recently ventured into Cambodia
After two decades of civil war,
as well. Having visited and worked
Rwanda has progressed enough to
in both these countries, I started
achieve an annual growth rate
noticing various commonalities of
averaging at 7%. It is now one of
these countries with Nepal. While
the fastest growing economies in
Nepal went through the Maoist
the
insurgency; which revolutionized
Similarly, Cambodia, which was
political
masses,
one of the poorest economies,
Rwanda suffered through mass
underwent a complete turnaround
genocide
and now ranks significantly better
LOST OPPORTUNITIES AMIDST SHARED COMMONALITIES SUDIP BHAJU I have been visiting Rwanda for
ideology and
of
killings,
and
Cambodia underwent American
RWANDA
than
East
Nepal
CAMBODIA
African
in
continent.
several
key
based oriented
economies; economies
goodwill to invest and support resources in sectors with the highest
potential
hydropower,
(agriculture,
tourism
and
manufacturing); thereby attracting huge foreign investments in these sectors. On an average, Rwanda doubles its power generation every 4-5 years, meanwhile Cambodia is self-sufficient and self-reliant on this front. Nepal on the other hand while glorifying its mountains and
river resources and hydropower
NEPAL
potential, has traded multiple
landlocked
licenses over the years with little
culturally and intricately beautiful
STRONG DIASPORA COMMUNITIES
addition to the national grid every
city of Angkor in Cambodia draw
While remittance from Nepal’s
year.
several thousands of tourists every
diaspora community is considered
year. However, the difference lies
to be a strong pillar of the
While Nepal does not shy away
in the fact that Rwanda has
economy, its contribution has been
from support and collaboration to
focused on product innovation and
dwindling (affected by the global
achieve the desired results, sadly it
enhanced the quality of services to
crude oil business and labor laws)
hesitates to capitalize on these
attract
meanwhile
and its utilization in productive
resources
Cambodia with the help of the
sectors remains a dialogue and
development process when the
development
topic of discussion. In comparison,
time is ripe. Nepal could have seen
preserved its rich heritage.
and
fast-track
the
Rwanda
tourists,
and
community
the
has
the returnee diaspora in Rwanda and
better results much earlier had it
Cambodia
are
realized the value of foreign aid
Nepal has an edge over these two
productive
and investments. However focus
countries as English is widely
experience and resources they
remains
spoken and understood in the
come back with.
on
inter/intra
party
and
extremely
utilize
the
politics and righteousness thereby
country.
leaving the wheels of the economy
extremely difficult to get around
In
dependent on remittance.
without the help of an interpreter
commonalities, it is proof that
and local guide in Rwanda and
economies marred with civil war
PRIVATE SECTOR OPERATIONS
Cambodia. Despite this, language
and unrest can come around and
is not much of a concern in these
grow into stronger economies, but
It is also interesting to see
countries as they have focused
it takes a leader with a vision for
commonalities in the functioning
beyond language for the tourism
the country to experience this. The
of the economy of these three
sector to thrive in the years to
eagerness
countries. For instance businesses
come.
convert a vision into an actionable
Meanwhile,
it
is having
and
stated
and
have a similar style of operation
plan
with one business community
execution
can and
all
the
willpower
sincerely bring
to
pursuing about
dominating market operations in a
While Nepal does not
economic
certain sector. Similar to the
shy away from support
turnarounds as proven by the
Marwaris in Nepal, Rwanda has
and collaboration to
Kenyans and Cambodia has the Vietnamese. Business transactions
achieve the desired
and trade is largely governed by
results, sadly it hesitates
these groups with little room for
to capitalize on these
local infiltration.
resources and fast-track
TOURISM A MAINSTAY
the development
Like the majestic Himalayas anchor
process when the time
Nepal’s
is ripe.
tourism;
Rwanda
and
continued
end
Gorilla
tourism
in
economic
growth
achieved in Rwanda and Cambodia.
Cambodia have their anchors too high
development
SUDIP BHAJU
beed management private limited
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beed management is an international management consulting and financial advisory services firm working in Nepal, Bhutan and Rwanda. Since its establishment in September 2008, we have served over hundred clients in over 20 industries.
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