Debut

Guests arrive Introduction EMCEE: Good evening to all of us. Welcome to Mapayapa Village,Clubhouse. Welcome to the party of our charming debutant who is now turning into a fine lady. This is quiet a very important event in her life and she is very much honor for your presence. She is now a real lady as she stepped onto the much higher level of what we call LIFE. Ladies and gentlemen, sit back as we groove, jive and enjoy her party for tonight†¦ EMCEE: But before we go on, it is my great honor to introduce all her special guests for tonight. Dad- Mr. Eduardo Benitez Mom- Mrs. Marilyn Benitez Sister- Maybelle Benitez Brother- Joemark BenitezWithout them, her life would be empty and unhappy. Let us all give a big round of applause to honor all the people whom she truly loved. Sabi nga, marami tayong mahahanap na kapuso, pero iisa lang ang ating kapamilya. GRAND ENTRANCE of debutante EMCEE: And now†¦. guests, friends, ladies and gentlemen, let us all stand as we welcome the deb utant as a woman of grandeur. Let’s give a big round of applause Ms. Mary Jane Benitez. TOAST IN HONOR OF THE DEBUTANTE INVOCATION OR PRAYER EMCEE: To spiritually open the program, may I ask everybody to please stand for the Lord’s Moment for our guidance and blessings to be led by DININGEMCEE: Now,I would like to announce that we will have our dinner this time. After the dinner, the family would like to request everybody to please remain for a while for the continuation of our program. Thank you. (after dinner) EMCEE: Once again, a sumptuous evening to one and all! It is my delight that you remain and let us rejoice for that. 18 Candles And to represent Jane’s Circle of Important People of her Life, let us welcome the following persons who will share their wishes and offer Ring ofEnlightenment which symbolizes friendship which binds two persons together, and the different colors of light from the ring represents all aspects of hardship and joy to make them clos er together. Of course these people will be the ones who will give her advices and kind words along the way on how to become a perfect woman. * Leah Mae Benitez * Dawn Garvida * Cristine Garvida * Francee Cutamora * Maybelle Benitez * Angelica Benitez * Nerili Garcia * Reyeen Vergara * Regina Mitra * Angielly Decoy * Grace Villena * Precious Feliciano * Jinky Aquino * Cha Sumacot * Donna Inguito * Christine Encomienda Jam Ballos 18 Treasures EMCEE:  Gifts symbolize ever flowing love, caring and admiration. * Mrs. Kristina Benitez * Mrs. Erlyn Villaruel * Mrs. Menchie Diaz * Mrs. Janeth Garvida * Mrs. Alma Illazar * Ms. Ruby Nacario * Mrs. Rosa Castillo * Mrs. Belen Navarro * Mrs. Fe Bulangis * Amy * Nanay Sally * Lita Cutamora * Tita Lon EMCEE: After the offering of the gifts, let us now proceed to the most important part of this should we call it rituals of turning 18? Let us now acknowledge one of the most loved and important persons in Jane’s life. This time to dance wit h her, let’s welcome her father†¦..Mr. Eduardo Benitez (after the dance) EMCEE: Mr. Benitez,Jane’s loving father will be followed by Jane’s Circle of 18 gentle bachelors who will offer to her roses that symbolize love. Love which Jane has for her family and all the people in her life. Each bachelor after giving Jane a rose will dance with her for about 1 or two minutes with the background music dedicated by each guy to the debutante†¦ let us start with†¦ (Modern Dance) SPECIAL NUMBER OF THE CELEBRANT EMCEE: Sharing is one of the virtues Jane possesses because it is what her parents taught her.To share to us one of her talents, let us hold our breath and fix our attention to what she will be given to us, ladies and gentlemen, let’s welcome Ms. Mary Jane Benitez! TOAST FOR A SUCCESSFUL LIFE EMCEE: Are you amazed with what she has performed to us? Jane is really such a talented woman, full of art and wonderful ideas for herself and of course f or all the people whom she truly loved. The wine symbolizes commitment and triumph. Jane is considered victorious because she is able to reach the debutant age and it is a great time for this kind of celebration.To toast with her the wine for a long lasting victory of her life, let us all call in the following special persons who are in one way or another became a part of her life through thick and thin, ups and downs, right and wrong and sometimes good and bad times of life. Once again Jane’s Family to be with here for the wine toast. DEBUTANTE’S SPEECH EMCEE: To officially confirm the heat and legality of this party, at para na rin ipaliwanag ang lahat ng kaganapang ito†¦ let us now hear the speech to be given of course by our gorgeous debutante†¦ no other than†¦ Ms. Mary Jane Benitez! PARTY TIME!!!

Effectiveness of Time and Financial Management Essay

The researchers chose 7 different scholars to conduct a survey about the chosen topic. Most of the respondents came from student assistant’s category and the others came from the category of academic scholars. These scholars were given scholarships from Ozanam Study Grant Program and Megaworld Foundation. On the range of their ages, 17-22 years old were the students who were given an opportunity they wanted to have. The scholars being interviewed have a daily allowance of more or less 150 pesos. On the Graph 1.1 being shown below are some of the expenses of the following students. Graph 1.1 A little number of respondents said that they stay in boarding houses that cost them Php 1,600 to Php 1,700. Literally, the cost was being solved by their parents. 3 out of 7 students said that both of their parents are self-employed. 1 respondent said that his/her parents run a business and another corresponds to unemployed parents. The rest of the students match up on other answers like their father/mother neither is an overseas Filipino worker, a tricycle driver, a plain housewife nor was deceased. Researchers proceed to the monthly income of their parents in able to measure the financial background of each and every respondent. Graph 1.2 illustrates the possible monthly income of the parents of these learners. Graph 1.2 As you can see, there is an equality of 14,000 and lower and 15,000-20,000 income. It is based on the survey being conducted by the researchers and from the occupation of their parents. On the part of their financial management, they spent the biggest part of their allowance for their food (50%) followed by their transportation and some other expenses. This shows that food is very important especially for the scholars like them. Food is an essential and they must not ignore because of the responsibilities they have in the university. The primary reason of the pupils asked in preferring themselves in being a scholar of Adamson University is that because they wanted to help their parents in decreasing the expenses. In this reason, an individual can determine that financial or money matters are the first basis in order for them to have financial management. Other reasons are for them to gain independency. The effectiveness of financial management is measured by proper usage of money and thinking a creative way of using up money. The researchers also find ways on evaluating time supervision of scholars. Because of a more number of student assistants being interviewed, most of their time is allotted on their duties. Here is Graph 1.3 that shows how long an ordinary scholar uses his /her time in the university. Graph 1.3 Take a look of the graph that has been illustrated by the researchers. Student D and F are academic scholars. According to the information gathered from the survey, these students are academic scholars. As academic scholars, their worlds are focused on studying. They usually spend time in resting, studying and even have a time for leisure. On the other hand, the remaining students (A, B , C and E) make use of their time in duties and offices. Equalizing time in each activity of a student like them is not easy to do. Like on the Graph 1.3, student assistants are divided in different opinions. Some of them were able to balance their time and others cannot. Same answer was derived by academic scholars. However, they also answered it depends on the situation. Situations are unpredictable and make equalization of time in different planned activities. Somehow, all of them have a time for rest and have a break after long hours from school. Lastly, as a scholar, grade is the most important or basis in acquiring scholarships. Grades of these scholars are not affected by activities being done in school. Therefore, these learners have a good strategic measures in managing their time and studies. Conclusion Based on the presented and interpreted data above, the following conclusions were drawn: 1. That most of the scholars spend their money more on food for it is an essential need. 2. That most of the scholars wanted to help their parents to reduce the number of expenses. 3. That most of the scholars allot their time to school by doing different duties but assures that grades of them will not be affected.

Role of Icb in the Development of Capital Market in Bangladesh: a Performance Evaluation of Icb Sponsored Mutual Funds

INTERNSHIP REPORT Dept. of Business Administration Shah Jalal University of Science and Technology, Sylhet. INTERNSHIP REPORT Role of ICB in the Development of Capital Market in Bangladesh: A Performance Evaluation of ICB Sponsored Mutual Funds Supervisor Ms. Nafsaniath Fathemaf Lecturer Department of Business Administration Shah Jalal University of Science and Technology, Sylhet. Submitted By Muhamad Abul Lyse 4th Year 2nd Semester (2nd Batch) Reg No: 0099730014 Dept of Business Administration Shah Jalal University of Science and Technology, Sylhet Date of submission: July 06, 2006 Date July 06, 2006 It is an immense pleasure for me to certify that this internship report entitled â€Å" Role of ICB in the Development of Capital Market in Bangladesh: A performance evaluation of ICB sponsored mutual funds† submitted to the department of Business Administration, Shah Jalal University of Science and Technology, Sylhet is an original work done by Muhammad Abul Lyse, a student of BBA 2nd Batch of Department of Business Administration, bearing the Registration number 0099730014. He has successfully completed the internship program at Investment Corporation of Bangladesh (ICB) and prepared this report on the aforesaid title under my supervision. I wish him every success in his endeavors. Signature: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Ms Nafsaniath Fathema Lecturer, Dept. of Business Administration Shah Jalal University of Science and Technology Sylhet-3114. July 06, 2006 Ms Nafsaniath Fathema Lecturer, Dept. of Business Administration Shah Jalal University of Science and Technology Sylhet-3114. Sub: Submission of internship report Dear Madam, Have the pleasure in submitting my internship report titled â€Å"Role of ICB in the Development of Capital Market in Bangladesh: A Performance Evaluation of ICB Sponsored Mutual Funds . As an integral part of my BBA degree, I have been assigned to work on the topic, with a view to well integrate the theoretical knowledge I have learned throughout my four years of study and thus to fine tune these knowledge with practical work experience in a financial institution like ICB, the pioneer and largest Investment Bank of the country. The Internship Program was very much valuable as it helped me to gain a real life experience working in a professional environment. I tried my best to get an in depth coverage of the topic and emphasized on using authentic data I am grateful to you for your kind suggestion and helpful advice in preparing this report. Once again, thank you very much indeed for giving me the opportunity to work under your kind supervision. Yours Sincerely Muhammad Abul Lyse Reg. NO: 0099730014 Department of Business Administration (2nd Batch) Shah Jalal University of Science and Technology, Sylhet. Contents part one Chapter one : iNTRODUCTION CHAPTER TWO: icb and ITS FUNTIONS CHAPTER tHREE: role OF ICB IN THE CAPITAL MARKET OF BANGLADESH CHAPTER FOUR: PERFORMANCE OF icb CHAPTER FIVE: SUBSIDIARY COMPANIES OF ICB part two CHAPTER ONE: ICB SPONSORED MUTUAL FUNDS CHAPTER TWO: findings and recommendations of an actiOn an PLAN Detailed contents pART ONE CHAPTER 1: iNTRODUCTION 1. Objective of the Study1 2. Scope of the Study1 3. Methodology of the Study2 4. Limitations of the Study4 CHAPTER TWO: ICB AND ITS FUNCTION 1. Background of the ICB5 2. Objectives5 3. Functions of ICB6 4. Business Policy7 5. Capital Structure7 6. Share Price of ICB8 7. Share holding Position of ICB9 8. Products of ICB11 9. ICB at a Glance14 10. Investors Scheme of ICB16 11. Organization Structure of ICB20 12. ICB Mutual Funds22 13. ICB Unit Funds23 14. Development Activities of ICB27 CHAPTER THREE: ROLE OF ICB IN THE CAPITAL MARKET OF BANGLADESH 3. 1 Capital Market28 3. 1. 1 Role of Capital Market in the Economic Development of a Country28 3. 1. 2 Investment Process29 3. 2 Financial Market30 3. 2. 1 Objective of the securities Market30 3. 2. 2 The Role of Government30 3. 3 Financial Market of Bangladesh31 3. 3. 1 Money Market32 3. 3. 2 The non-Securities segment of the Capital Market32 3. 3. 3 The Securities-segment of the Capital Market32 3. 4 The Elements of Security Market33 3. 5 Creating a Supply of Good Securities in Market333. 6 The Origin and development of Capital Market in Bangladesh33 . 7 The Present Scenario of Bangladesh Capital Market35 CHAPTER FOUR: PERFORMANCE OF ICB 4. 1 Role of ICB in the Capital Market of Bangladesh36 4. 2 Operational Activities of ICB41 4. 2. 1 Consideration of Applications41 4. 2. 2 Commitment42 4. 2. 3 Disbursement 46 4. 2. 4 Loan Portfolio47 4. 2. 5 Trustee, Custodian, and Issue Manager48 4. 2. 6 Lease Financing49 4. 3 Portf olio Management50 4. 4 Other Operational Activities51 4. 4. 1 Advance against ICB unit and Mutual Fund certificates Scheme51 4. 4. 2 Consumer Credit Scheme52 4. 4. 3 Merchandising Operations52 4. 4. 4 ICB Mutual Fund52 4. 4. Transaction of Securities53 4. 5 Participation in International Activities53 4. 5. 1 ICB’s involvement with South Asian Development Fund (SADF)53 4. 5. 2 Investment in South Asia Regional Fund (SARF)54 4. 6 Financial Result of ICB 55 4. 6. 1 Total Expenditure56 4. 6. 2 Net Income56 4. 6. 3 Dividend57 4. 6. 4 Some Key Financial Ratios58 CHAPTER FIVE: THREE SUBSIDIARY COMPANIES OF ICB 5. 1 Subsidiary Companies of ICB595. 2 ICB Capital Management Limited (ICML)59 5. 2. 1 Background of ICML 5. 2. 2 Vision of the Company59 5. 2. 3 Mission of the Company60 5. 2. 4 Some Salient Features of ICML investors’ Scheme60 5. . 5 Advantages of ICML Investors’ Scheme61 5. 2. 6 Margin Loan61 5. 2. 7 Financial Performance of ICML63 5. 3 ICB Asset Management Li mited (AMCL)63 5. 3 ICB Securities Trading Company Limited (ISTCL)66 PART TWO CHAPTER ONE: ICB SPONSORED MUTUAL FUNDS 1. Some key issues of Mutual funds 68 1. Definition of Mutual Funds 68 2. Types of Mutual funds 68 2. ICB Mutual Funds 69 1. Nature of Business 70 2. How to buy existing Mutual funds 70 3. Management of the funds 70 4. Assets of ICB Mutual funds 70 5. Management fee, Charge etc. 71 6. Declaration of Dividend 71 3. Operational Highlights of ICB Mutual Funds 72 4. Financial Statement Analysis of ICB’s Mutual Funds 76 1. Earnings Per Share (EPS) 76 2. Dividend Per Share 78 3. Dividend Payout Ratio 79 4. Earning Yield Ratio 80 5. Dividend Yield Ratio 81 6. Price Earning Ratio 82 CHAPTER TWO: FINDINGS AND recommendation 1. Finding about The Capital market of Bangladesh83 2. 1. 1 Lack of Confidence83 2. 1. 2 Frequent Monetary Change83 2. 1. 3 Liquidity Crisis84 2. 1. 4 Volatile Market Situation84 2. 1. 5 Absence of good Securities85 2. 1. 6 Absence of Government initiative85 2. 1. 7 Market Maker85 2. 1. 8 Awareness85 2. 1. 9 Lack of knowledge85 2. 1. 10 Mass Participation86 . 2 Findings about Investment Corporation of Bangladesh86 2. 2. 1 Services stopped by ICB86 2. 2. 2 Unfair dividend Policy of Mutual funds86 2. 2. 3 Irredeemable Mutual funds87 2. 2. 4 Absence of efficiency in Portfolio management of MF87 2. 2. 5 Lengthy Processing87 2. 3 Recommendation of an Action Plan88 2. 4 Conclusion 90 Bibliography 92 Acronym and Appendices I. Appendix : Or anagram of ICB II. Appendix: Balance Sheet and Income Statement of ICB Executive Summary Investment Corporation of Bangladesh (ICB), established in 1976, is virtually the only Investment Bank in Bangladesh. In a broader sense, ICB is both an investment Bank and Development Financial Institution. (DFI). ICB plays a pivotal role to encourage and broaden the base of investment and thereby to help to develop a vibrant capital market in Bangladesh. ICB caters to the need of institutional support to meet the equity gap of emerging new companies. ICB works with a view to mobilise savings of general public and inspires small and medium savers for investment in securities. As s single entity, Government of Bangladesh holds majority shares of ICB (i. e. 27%). With diverse functions, ICB operates on commercial basis, provides financial assistance to projects subject to their economic and commercial viability and arranges equity and loans singly or through consortium of financial institution. Functions of ICB include; purchasing of shares and debentures including placement and direct participation, managing existing mutual funds and investment accounts, providing investment counseling to investors and helping government to its divestment programs. The following report titled â€Å"The Role of ICB in the development of Capital Market in Bangladesh: A Performance Evaluation of ICB Sponsored Mutual Funds† contains a comprehensive overview of ICB with special emphasis on ICB’s role in the development of capital market in Bangladesh. Likewise, an analysis of ICB sponsored Mutual funds is made with detail financial analysis as ICB since its inception, have been performing a pioneering role in the capital market of Bangladesh by managing the portfolios of ICB’s eight mutual funds. Since 1980, ICB floated a total of eight mutual funds with paid up capital of Tk 17. 0 crore. After taken a restructuring program of ICB under Capital Market Development Program (CMDP) initiated by the government of Bangladesh and the Asian Development Bank (ADB) and in terms of power conferred in the ICB ordinance three subsidiary companies, namely (1) ICB Capital Management Limited (2) ICB Asset Management Company Limited and (3) ICB Securities Trading Company Limited have been created and made operational to carry out merchant banking, mutual fund operations and stock brokerage functions respectively. The report is divided mainly into two parts. Part One contains a comprehensive coverage of ICB with its role in the development of capital market in Bangladesh and Part Two establishes part one by analyzing the ICB sponsored Mutual funds as ICB plays a central role in the capital market of Bangladesh by managing its eight mutual funds. Part One consists of Four Chapters. Chapter One includes the objective, scope, methodology and limitations of the study. Chapter Two describes historical background, objectives, business policies, functions, capital structure and products of ICB. Chapter Three explain the financial market and various segments of financial market of Bangladesh. The chapter also establishes the role of ICB in the development of Capital Market in Bangladesh. Chapter Four illustrates the performance of ICB. Chapter Five includes a description of three subsidiary companies of ICB. Part Two consists of two chapters. Chapter one evaluates the ICB sponsored mutual funds. This chapter initially deals with some theoretical concepts of mutual funds and then an in-depth financial performance of ICB mutual funds. Chapter two includes some findings of the study with recommendation of an action plan. The report ends with a bibliography and an appendix. Acknowledgments I would like to express my gratitude to Dr. Md. Nazrul Islam, Head and Associate professor of the Department of Business Administration of Shah Jalal University of Science and Technology, Sylhet and All of the Teachers of the Department especially to my supervisor Ms Nafsaniath Fathema who constantly inspired, supervised, and encouraged me with valuable advice and cooperation through the whole period of my internship Program. I would also like to express my special regards to Ms Nasreen Sultana, AGM of the Personnel Department, who allowed and gave me the opportunity to work in Investment Corporation of Bangladesh, the pioneer Investment Bank of the country. I am also highly grateful to the authority of ICB and all the AGMs of various departments who helped me a lot and cooperated me during my internship period. I am in pleasure to the express my gratitude to the internship and placement committee of the Department of Business Administration especially to the oordinator of the committee, Mohammad Imtiaz Ferdous, also the Assistant Professor of the Department of Business Administration. I would like to extend my special thanks to Ms Sharmin, Senior Principal Officer of Personnel Department, Subashis Chakrabarti, Assistant librarian of the ICB and all the respective officers of ICB for their cordial cooperation and helpful advice. As the first work of my life, I would bear this fond memory of ICB for the re st of my life. | | | | | | | | | | | | | | | | | | |PART ONE | | | | | | | | |CHAPTER ONE | | | | | |INTRODUCTIONS | | | | | | | | | | | | | | | | | | | | | | 1. 1 Objective of the Study Learning by doing is an effective way of acquiring knowledge. To have a real life exposure, each student of Department of Business Administration, of Shah Jalal University of Science and Technology has to carry out an internship program as an integral part of his/her BBA degree. Since, only the theoretical knowledge can not make one fit for increasing competitive situation of the world, the internship placement committee had placed me at ICB for a period of three months. Other objective of this study is as follows: ? To relate academic knowledge with real life business world. ? To have an overall idea about the role of ICB in the capital market of Bangladesh with a special emphasis on ICB sponsored Mutual Funds[1]. ? To analyse the profitability of ICB sponsored mutual funds. ? To find out prevailing drawback and lacking of ICB, if there is any, and recommend an action plan. 1. 2 Scope of the Study The scope of this report is only one organisation i. e. Investment Corporation of Bangladesh (ICB) and specially the Mutual Funds as it is the focus area of this report. It has been mentioned earlier, the main objective of the study is to analyse the role of ICB in the development of Capital market in Bangladesh with an emphasis on ICB sponsored mutual funds. The report gives an overview of ICB followed by a part on financial involvement of ICB. The report establishes the theoretical and conceptual framework comparing with which the capital market will be judged. There is one elaborate part that deals with the ICB sponsored mutual funds. The study will also present some problems of ICB observed during the internship coupled with some recommended action plan. 1. Methodology of the Study Methodology can be referred as underlying principles and rules of organization or the philosophical systems that work at the backdrop of any study. It clarifies the problems involving the research in a very ordered and systematic fashion. Strategies are det ermined at this stage for future implementation. In conducting any formal survey and preparing any research paper two kinds of data i. e. Primary Data and Secondary Data, are used. I tried my best to collect both types of data and information and have firm intention to emphasis on primary data as it is often up-to-date and more useful than any published information. Initially we collected raw data from departments of ICB and then sort out useful information relevant to my paper. Approaches and methods that have been used to prepare this report are as follows. 1. Personal interview: ICB has 25 departments and three subsidiary companies so far. I personally interviewed almost all AGMs of all departments and talked with the senior Principal Officer, principal Officer and other officer of concerned departments. 2. Briefing Session: Division heads (DGMs[2]) and department heads (AGMs) or their approved officials gave briefs about their respective departments. Information gathered from these sessions has been used in the report. 3. Published reports: a large amount of data are taken from the published sources such as ICB’s annual reports of previous years, Annual reports ICB Mutual Funds, Monthly review of Dhaka and Chittagong Stock Exchange. 4. Selection of the sample: the sample area of this study covers the head office of ICB. Since the central financial activities are done under surveillance of the Head office of ICB, so the selection of sample of this study is justifiable. Data collected from different divisions of ICB are all equally important segments of sample used in this study. ICB as a national investment institution has added a tempo in developing the capital market of Bangladesh. As a result of this importance the selection of ICB as the sample area of this study is presumably the demand of the time. 5. Time schemes: As stated earlier since the purpose of this internship program is an exposure to practical life, the ICB management has deputed me to all the division, departments, sections and cell to acquire hand-on-experience about each of them. I have visited the departments according to the following schedule. | |Name of the Departments |From |To | |   |   | |   | |1 |Personnel Department |27. 03. 2006 |28. 03. 006 | |2 |Secretary Department |29. 03. 2006 |   | |3 |Planning research and Business development Dept. |30. 04. 2006 |09. 04. 2006 | |4 |Management Information Dept. |10. 04. 2006 |12. 04. 2006 | |5 |Securities Analysis Dept. |13. 04. 2006 |16. 04. 2006 | |6 |Investor's Dept |17. 04. 2006 |19. 04. 2006 | |7 |Shares Dept. and reconciliation Cell |20. 04. 2006 |25. 04. 2006 | |8 |Unit sales Dept. |26. 04. 006 |27. 04. 2006 | |9 |Unit registration and collection Dept. |30. 04. 2006 |02. 05. 2006 | |10 |Mutual Fund Dept. |03. 05. 2006 |07. 05. 2006 | |11 |Central Acco unts Dept. |08. 05. 2006 |10. 05. 2006 | |12 | System Analysis Dept. |14. 05. 2006 |15. 05. 2006 | |13 |Programming Dept. |16. 05. 2006 |17. 05. 2006 | |14 |Loan Appraisal Dept/Lien Cell |18. 05. 2006 |21. 05. 2006 | |15 |SAARC Cell |22. 05. 006 |—- | |16 |Project Implementation Dept. |23. 05. 2006 |—- | |17 | Loan Recovery and Monitoring Dept. |24. 05. 2006 |25. 05. 2006 | |18 |Project Loan Account Dept. |28. 05. 2006 |—- | |19 |Public Issue Dept. |29. 05. 2006 |—- | |20 |Trustee Dept. |30. 05. 2006 |31. 05. 2006 | |21 |Law Dept. |01. 06. 2006 |04. 06. 2006 | |22 |Audit and Method Dept. |05. 06. 2006 |06. 06. 2006 | |23 |Department Control Dept |07. 06. 006 |—- | |24 |Establishment Dept. |08. 06. 2006 |11. 06. 2006 | |25 |public Relation Dept. |12. 06. 2006 |—- | |26 |ICB Asset Management Company Ltd |13. 06. 2006 |15. 06. 2006 | |27 |ICB Capital Management Ltd |18. 06. 2006 |20. 06. 2006 | |28 |ICB Securities Trading Ltd |21. 06. 2006 |2 6. 06. 2006 | Table 1. 1: Schedule of working at ICB 1. 4 Limitations of the Study Limitations are obvious in any study so do here. Since this is an internship report, the limitations regarding the internship programm has acted as the limitation of the study. The findings we figured out, and the recommendation we made may not be 100% accurate and may not represent the exact situation. Eventually, in completion of my study, a number of constraints and limitations I faced. These can be considered as follows: ? Performance analysis of ICB and its mutual funds may not represent the current condition of the organisation and its mutual funds as all the analysis are based on the data of June 30, 2005. Since the current year financial disclosures are not public yet, so the analysis is a little backdated. ? Officials of ICB maintain a very busy schedule. So they were not always able to provide enough time to enrich the intern students every time, even if they had the intention to do so. ? Due to security reasons and organizational privacy we didn’t have access to some core areas of ICB. ? I had to go almost every department of ICB during my three months internship programm at ICB. Three months is a very short span of time to get an in-depth knowledge about a giant organization like ICB. ? The area covered by the report â€Å"The role of ICB in the development of Capital Market in Bangladesh: A Performance Evaluation of ICB Mutual Funds† concerns a huge a number of activities and it is very difficult to sketch a total picture of the financial activities in a report of this short scale. | | | | | | | | | | | | | | | | | | | | | | | | | | | |CHAPTER TWO | | | | | |ICB AND ITS FUNCTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2. 1 Background of the ICB The investment corporation of Bangladesh (I CB) was established on 1st October 1976, under â€Å"The Investment Corporation of Bangladesh ordinance, 1976† (no XL of 1976). The establishment of ICB was a major step in a series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well organized and vibrant capital market particularly securities market in Bangladesh. ICB caters to the need of institutional support to meet the equity gap of the companies. In view of the national policy of accelerating the rate of savings and investment to foster self –reliant economy, ICB assumes an indispensable and pivotal role. Through the enactment of the Investment Corporation of Bangladesh (Amendment) Act 2000 (no 24 of 2000), reforms[3] in operational strategies and business policies have been implemented by establishing and operating subsidiary companies with ICB as the holding company. 2. 2 Objective As the country’s Pioneer Investment Bank, ICB has been working to assist the small investors in mobilizing their savings. ICB works with a view to broaden the base of the investment of the country, ensure mass participation of general people in the capital market and thus to contribute towards the GDP of Bangladesh. ? To encourage and broaden the base of investments ? To develop the capital market ? To mobilise savings ? To promote and establish subsidiary companies for business expansion. ? To provide for matters 2. 3 Functions of ICB To develop the capital market of Bangladesh, and mobilise the savings of small investors, ICB carry out a range of diversified functions. With a solid view to foster and accelerate the economic growth of the country, ICB provides all sorts of financial services to the potential sector. Ensuring equal distribution of economic benefits gained by the economy among the grass root level is one of the main objectives of ICB. Various functions of ICB can be mentioned as follows. Unlike any other financial institutions, ICB maintains a portfolio of the government comprised of different securities of listed companies and helps government advising regarding fiscal and monetary policy of the country. As a market maker it floats mutual funds, issues unit certificates, underwrites securities and manages issuance of securities. | | | |Underwriting of initial public offering of shares and debentures | | |Underwriting of right issue of shares | |Basic |Direct purchase of shares and debentures including Pre-I[4]PO placement and equity participation | |Functions |Providing lease finance to industrial machinery and other equipments singl y or by forming syndicate | |Of |Managing investors' Accounts | | |Managing Open End and Closed End Mutual Funds[5] | |ICB |Operating on the Stock Exchanges | | |Providing investment counseling to issuers and investors | | |Participating in government investment program | | |Participating in and financing of, joint-venture projects | | |Dealing in other matters related to capital market operations | | |Trusty, Custodian, Bank Guarantee | | |Consumer Credit | 2. 4 Business Policy The corporation has adopted a realistic business policy framework within which its operation is conducted. The corporation, acts on commercial consideration with due regard to the interest of industry, commerce, depositors, investors and to the public in general. | | | | |To provide financial assistance to projects subject to their economic and commercial viability. | |Business |To arrange consortium of financial institutions including merchant banks to provide equity support to | |Policy |projects and thereby spread the risk of underwriting. | |Of |To develop and encourage entrepreneurs. | |ICB |To diversify investments in securities. | |To create employment. | | |To encourage Investment in IT sector. | | |To encourage Investment in joint venture capital/project. | 2. 5 Capital Structure | Capital Structure of ICB -as on June 30, 2005 (Tk in crore) | |Authorised capital |100. 00 | |Paid up capital |50. 00 | |Reserve |84. 11 | |Retained profit |5. 6 | |Long term govt. Loan |5. 25 | |Debentures |61. 80 | |Others |24. 89 | |Total |231. 41 | Source: Drawn based on the data of ICB Annual Repo rt 2004-2005 Figure 2. 1 Capital Structure of ICB Share price of ICB Share price of for the last year was as follows: Fig 2. 2: 2. 7 Share holding Position of ICB Equity participation from a range of institution along with the government of Bangladesh has made the capital structure of ICB as a unique. Nationalised banks, Private commercial banks, Bangladesh Bank including the general public have ownership in ICB. |Shareholding position of ICB (as on June 30,2005) | |Shareholder |No. of share holder |No. of shares |Percentage | |Governments of Bangladesh |1 |1350000 |27. 00 | |Nationalised Commercial Banks |4 |1137220 |22. 4 | |Development Financial Institution |2 |681550 |13. 63 | |Insurance Companies |3 |618286 |12. 37 | |Bangladesh Bank |1 |600000 |12. 00 | |Denationalized Private Com Banks |2 |454263 |9. 08 | |Private Commercial Banks |3 |28286 |0. 7 | |Foreign Commercial Banks |2 |26531 |0. 53 | |First BSRS Mutual Fund |1 |6900 |0. 14 | |Other Institution |9 |26949 |0. 54 | |General Public |927 |70015 |1. 54 | | Total|955 |5000000 |100. 00 | Table 2. 2: Shareholding Position of ICB Source: Annual Report 2004-2005 [pic] Figure: 2. 3 Shareholding position of ICB 2. 8 Products of ICB Private Placements ICB is authorized to act as an agent of the issuers and investors for private placements of securities. Under this arrangement, ICB places securities to individuals/institutions on behalf of the issuer for which it charges fees. ICB also acquires shares/securities for its own portfolio both in pre-IPO placement and equity investment. Underwriting[6] In order to raise long term equity from the primary market, the government bodies, enterprises, corporations or companies may seek intermediary assistance from ICB in the form of underwriting. Because of its long and proven experience, reputation, asset back up and established network of regional offices, ICB is in an excellence position to attract the potential investors to the proposed issue of shares, debentures and other securities for successful flotation of IPO and placement. Custodian and Banker to the Issues To act as the custodian to the public issue of Open-end & Closed-end Mutual Funds, ICB provides professional services. It also acts as the Banker to the issues and provides similar services through the network of its branches. Fees in this regard are negotiable. Mergers and Acquisitions Companies willing to expand their business through mergers or acquisitions or o divestment projects that no longer viable into present capacity of operation can contact the Corporation. ICB provides professional services & advices in respect of shaping up the cost and financial structures to ensure best possible operational results. Besides, in case of divestment, the corporatio n, through network and established business relationship, bring buyers and sellers together, help them to negotiate final agreement and advice on the emerging corporate structure. Advance against Unit Certificates Scheme Advance against ICB Unit Certificates Scheme was introduced in 1998, especially designed for the ICB unit- holders to meet their emergency fund requirements. One can borrow maximum Tk. 5 per unit by depositing his/her unit certificates under lien arrangement from any of the ICB offices where from such unit certificates were issued. The rate of interest on the loan is reasonable and competitive. Corporate Financial Advice Government enterprises and Companies intending to go public issue often seek professional & financial advice on corporate restructuring & reengineering. ICB through its expertise provide such services through its expertise. Lease[7] Financing ICB Provides lease finance mainly for procurement of industrial machinery, equipment and transport. ICB prov ides professional advice and financial assistance to the intending clients. The period of lease, rental, charges, and other terms and conditions are determined on the basis of type of assets and the extent of assistance required by the applicants. Since introduction of this scheme in 1999, good responses have been received from the intending lessees. Trustee to the debenture and Securities assets ICB is acting as a trustee to the debenture issues and asset-backed securitised bonds. ICB acted as trustee to the issues of 17 companies of which 7 companies has been redeemed successfully. Bank Guarantee scheme ICB introduced Bank Guarantee scheme in 2002-03. ICB provides (i) Bid Bond for enabling the business people to participate in any tender or bidding; ii) Performance Bond for helping the business community to continue their business smoothly by fulfilling their obligations promised by them to their clients; and (iii) Customs Guarantee for solving different disagreements between the customs authority and the business classes at the initial stage. The maximum limit of guarantee is Tk. 2. 00 crore and would be issued against at east 20% cash and 80% easily encashable securities or against 100% cash margin. Re-guarantee from other financial institution is required for guarantee against the amount exceeding Tk. 2. 00 crore. Consumer Credit Scheme As part of business diversification program, ICB has introduced â€Å"Consumers Credit Scheme† in 2003-04 considering at the need of various household commodities of different employees of govt. , semi-govt. autonomous bodies and some established private sector organizations. Under this scheme one can enjoy minimum Tk 1. 0 lac but maximum 5 lac credit facilities. The rate of interest on the loan is reasonable and competitive which is fixed by the board of directors of ICB considering the bank rate and with the guidelines of Bangladesh Bank. 2. 9 ICB at a Glance |Particulars |Cumulative up to June 30, 2005 (Tk in Crore) | |Authorized Capital |100. 00 | |Paid up Capital |50. 0 | |Financial Assistance to projects (Commitment) | | |No of projects |431 | |Amount |536. 87 | |Disbursement of project loan | | |No of projects |308 | |Amount |114. 2 | |Trustee to debenture issue | | |No of companies |17 | |Amount |184. 15 | |Trustee to issue of bonds | | |No of companies |5 | |Amount |134. 6 | |Custodian/Trustee to issue of Mutual Funds | | |No of funds |4 | |Amount |60. 00 | |Manager to the issue | | |No of companies |41 | |Amount |104. 9 | |Lease financing | | |No of projects |34 | |Amount sanctioned |92. 93 | |Public Issue (ICB Assisted) | | |No of companies |111 | |Size of issue (General public) |368. 3 | |ICB Investors’ scheme | | |No of accounts opened |77207 | |Investment made |760. 82 | |ICB Mutual Funds | | |Number |8 | |Capital fund |17. 0 | |Total market value of investment |67. 66 | |Dividend per certificate in eight mutual funds for the year 2004-2005, ranges | | |from Tk 15 to Tk 210) | | |ICB unit fund | | |Gross sale |940. 8 | |Rate of dividend for the year 2004-05=Tk12 per certificate | | |ICB’s Transaction in the Stock Exchanges including subsidiaries | | |DSE |769. 90 | |CSE |268. 73 | Financial Results (For the year 2004-05) (Tk in crore) |Income |170. 38 | |Net profit after Tax |21. 3 | |Dividend (Tk per share) |12 | |Manpower (as on June 0,2005) |396 | |No of shareholders ( as on June 30, 2005) |955 | 2. 10 Investors Scheme of ICB Investor scheme is one of the core functions of ICB. Through investors’ scheme, ICB ensures Participation of small investors in the capital market of Bangladesh. The Investors' Scheme was introduced in 1977 with the objective of broadening the base of equity investment through mobilising savings of small and medium size savers for investment in the securities market. In addition to Head Office, Investment Accounts are also operated at the 7 branch offices of ICB located at Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Sylhet, and Bogra. However in view of strategic changes in policy reform, from 01 July 2002 ICB stopped opening new accounts and ICB Capital Management Ltd. started opening and managing investment accounts. ICB will continue to provide services to its existing accounts only. Table 2. 3: Comparative operational activities of the investors’ scheme in 2004-2005 and 2003-2004 |Particulars |04-05 |03-04 |Increase/Decrease |Cum as on June 30, 2005 | | | | |(%) | | |No. f accounts opened | — | — | — |72207 | |No. of accounts closed |807 |776 |4. 26 |28327 | |No. of net operative accounts |48880 |49687 |-1. 62 |48880 | |Deposit received |22. 7 |27. 31 |-16. 62 |314. 87 | |Loans disbursed |159. 5 |58. 73 |171. 58 |707. 8 | |Investment Made |118. 26 |62. 91 |87. 98 |760. 82 | |Interest accrued |25. 09 |30. 48 |-17. 68 |— | |Interest waived |19. 06 |31. 26 |-39. 03 |55. 52 | |Recovery of margin Loans |179. 6 |103. 14 |74. 13 | —| |Fund withdrawal |40. 18 |13. 09 |206. 95 | —| Further steps were undertaken to enhance the quality and speedy service under the scheme like computerization of all activities and installation of merchandizing operation management software. This enables the management to offer better and quick service to the investors including instant supply of the financial statement, portfolio, balance of the accounts, etc. Installation of telephone banking system in Investors' Account enabling investors to collect information and operate their account over telephone was at the final stage of operations. Besides, installation of Electronic display system of DSE online trading on the floor of ICB has been set up. Through investors’ scheme ICB provides the following services. Authority of Operation An account may be operated by the account holder himself/herself or he/she may authorize to another A/c. holder of investors account of ICB by written consent in the prescribed form, some one else to operate the account on his/her behalf. In case of joint account holders, account may be operated by single or joint signatories or by authorised operator. Margin Loan Presently ICB grants loan up to two times i. e. at the ratio of 1:3 against the deposits of account holder(s) subject to a maximum of Tk. 3, 00,000. 00 to an account. However, management of ICB, at its discretion, may limit such loan. Loans are repayable as per repayment schedule given by ICB. In the event of default of loan repayment, the outstanding amount may be recovered by sale of securities held in the account. Portfolio Management The account holder may use his/her equity and the loan to buy securities which ICB keeps as collateral. Purchase and sale orders are executed by ICB within the shortest possible time, subject to the availability of fund in the account and scope of matching of buyers/sellers and securities in the stock exchanges. An account holder or his/her authorized person may place purchase/sale execution order in the prescribed form, indicating whether, the order is a limit order i. e. an specifying the max. /min. rice at which he/she is willing to buy /sale, or at a market price i. e. without any limit of price. The purchase and sale orders are valid for seven and ten days respectively, if not revalidated / cancelled otherwise by the account operator. Withdrawal of Securities/Funds All or any amount of fund or securities may be withdrawn from an accou nt subject to keeping of minimum credit balance of Tk. 5000. 00 in cash or in securities to keep the account running alive. Application against IPO All activities relating to application for securities and collection of allotment letter / refund warrant and certificates, as the case may be, against the IPO[8] are done by ICB on behalf of account holder. Collection of Securities and Benefits Right shares, bonus shares, dividends, interest, converted shares etc. accruing to an account are collected by ICB from the respective companies. Registration and custodial services Registration of shares/ securities with the company is made before the closure of the company's share / debenture transfer book, after completing all the required formalities, on behalf of the account holder. Volt and other custodial arrangement for assets of the account are provided by ICB. Counseling and data support In order to develop diversified and balanced portfolio to minimize risk and maximize profit, ICB provides professional advice to its clients. Data support in the form of securities analysis sheet, daily purchase/ sale position, statement and portfolio of each account, etc. are provided on demand and on regular interval. Income Incomes from investments by way of dividend, interest, bonus shares, capital gains etc. are credited to the respective account. Expense Interest on loan (currently-12. 5%) and brokerage (0. 5% for non CDS & 0. 5250% for CDS) on sale/ purchase of securities are charged to the respective account. To encourage the small and medium savers, ICB at present does not charge fees for most of the services rendered by ICB to its customers, including fees for management, investment advice, custodial service(for non CDS securities),etc. Closing of Account An account may be closed by written order subject to settlement of fees & dues, if any. There is no provision of revival of a closed account. Risk Management Risks of investments in the securities market are minimized through prudent & professional portfolio management. 2. 11 Organization Structure of ICB Management of ICB The head office of the corporation as per the requirement of the ordinance of ICB is located at Dhaka. The board of directors of ICB is very much rich as it consists of distinguished professional and managing director of other organization. The Board consists of 11 members including the Chairman and Managing Director. The Board of Directors consists of the following members. The Chairman and Managing Director (MD) are to be appointed by the government o The directors to be appointed by the government from among persons serving under the government. o One Director to be appointed by the Bangladesh Bank o The Managing Director of Bangladesh Shilpa Bank (BSB), ex offi ce. o The Managing Director of Bangladesh Shilpa Rin Shnagsta (BSRS) o Four other directors to be elected by the shareholders other than the government. ICB- its Divisions and Departments Investment Corporation of Bangladesh split, into 25 departments and 11 divisions in its head office. Beside that ICB has seven branches in different districts. These are situated at Dhaka (local office), Chittagong, Sylhet, Rajshahi, Khulna, Bogura and Barisal. ICB is functionally divided into two broad wings. One is operations wing and another is Administrative wing. The functions of operational wings involve the activities of project Financing, Planning Research and Business Development, Lunching Unit and Mutual Funds (launching if new funds is now stopped and currently the function is accomplished by ICB Asset Management Ltd), transaction and maintenance of Investor Accounts. The function of administrative Wing involve the activities of Account and Finance, Legal affairs, Implementation and Recovery, Project Implementation, Law and Public Issue. It is mentioned earlier, that ICB consists of 11 Divisions and 25 departments. The following table lists all the divisions and departments of ICB. An appendix at the pf the report contains the full Organ gram of ICB. Table 2. 4 |Division |Department | |A. Administration |01. Personel | | |02. Establishment | |B. Loan Appraisal |03. Loan Appraisal | | |04. Economic and Business Research | | |05. Securities Analysis | |C. Legal Affairs |06. Public Issue | | |07. Law | |D. Merchandising |08. Investors’ | | |09. Shares | | |10. Transaction | |E. Funds |11. Unit sales | | |12. Unit Registration and Procurement | | |13. Mutual Funds | |F. Computer |14. System Analysis | | |15. Programming | | |16. Management Information System | |G. Audit And Methods |17. Audit And Methods (Head Office) | | |18. Audit And Methods (Branches) | |H. Accounts and Finance |19. Central Accounts | | |20. Project Loan Accounts | |I. Implementation |21. project Implementation | | |22. Recovery and Follow-up | |J. Secretary’s |23. Secretary’s | | |24. Public Relation | |K. Branch and Subsidiaries control Division |25. Branch Control Department | 2. 11 ICB Mutual Funds It is a recognized principle that diversification of investment reduces risk. An individual may not have the time, expertise and resources to undertake such diversification. Here arises the advantage of a Mutual Fund. Mutual Funds pool the savings of a great number of investors and make investments in a wide array of securities. In Bangladesh ICB has pioneered Mutual Funds for the sake of investors and of the capital market. Mutual Funds are also known as close ended Mutual Funds. The issued capital of a Mutual Fund is limited, that is, a Mutual Fund offers a limited number of certificates for sale to the public. The amount of capital and the number of certificates of each Mutual Fund remains unchanged. ICB Mutual Funds are independent of one another. Price of Mutual Fund certificates after IPO is determined on the Stock Exchanges through interaction of supply and demand. The market price of a Mutual Fund certificates is available in Stock exchange quotations and in newspapers. An investor can purchase any of the existing eight ICB Mutual Funds certificates through the Stock Exchanges at the prevailing Market Price. The Mutual Funds are managed by ICB as fund manager for which receives commission @1%. ICB Mutual Funds Certificates holders shall have unfettered ownership in the assets of the Fund to which they are related. In case of winding up of the Corporation the assets belonging to any ICB Mutual Fund shall not be treated as the assets of the Corporation. At present management fee @ 1% on the paid up capital of the Fund is charged annually. No amount is charged on account of custodial and trust services. The net income received on investments of Funds on account of dividend, bonus, interest, capital gain etc. are distributed amongst the Certificate Holders as per decision of the Board of Directors of ICB. Board declares such income in the form of dividend at the end of July each year. Dividends declared by ICB in the past on the Mutual Funds were very attractive. A detail analysis on ICB sponsored mutual fund will be followed on the second part of the report. 2. 12 ICB Unit Fund Sponsored by the Government of Bangladesh, ICB Unit Fund was established on April 10, 1981. Its main objective is to mobilize savings through sale of its units to small investors and invest these funds in marketable securities. The scheme provides a potential source of equity and debt to industrial and commercial concerns and thus contributes to the industrial development of the country. Unit fund is an open ended Mutual Fund. It provides an opportunity to the unit holders to invest their funds in a well managed and diversified portfolio with a high degree of security of capital and reasonable yearly returns. Investment in Units is safe and ensures a continuous and regular source of income for the holders. Units are easily encashable. As such, investment in Unit is comparatively more attractive. By investing in this scheme an investor may derive personal benefit on the one hand and also contribute towards the economic development of the country on the other. ICB units are securities within the meaning of Trust Act. 1882. Issue, Transfer and Surrender of Unit Certificates (I) Units are available in 1, 5, 10, 50, 100, 500, 1000, & 5000 denominations. The names with addresses of the holders are recorded and dividends are dispatched to them accorded and dividends are dispatched to them accordingly. II) Units may be transferred through prescribed transfer form duly filled in and signed by the transferor and transferee. No stamp duty is required for such transfers. (III) Units may be encased by way of surrendering the certificates along with the prescribed surrender forms duly filled in and sig ned by the registered holders and no prior notice is required. The certificates are required to be surrendered at the prevailing Repurchase Price. Price Fixation: Changes in repurchase prices of units are notified through the newspapers and price of a Unit is fixed periodically by ICB as its fund manager. Among others, valuation of the assets of the Fund is taken into consideration while fixing price of a unit. Public Participation The Fund is divided into units which are generally known as â€Å"ICB Unit†. Each Unit bears a certain value in the assets of the Fund. The Unit holders are the owners of the fund and only they are benefited from it. Unit certificates can be purchased in single or joint name (s). At present maximum of 10,000 Units can be purchased in a single or joint name(S) at a time. Units are not sold to institutions. Professional Counseling Professional Counseling is rendered to the prospective & existing investors who are eager to purchase ICB Units through ICB offices and authorized Bank branches. Presently this scheme is operated by ICB Asset Management Company Limited. Investment by Bangladeshi Citizens Abroad The Bangladeshi citizens living abroad may invest in certificates on fulfillment of the following terms and conditions: (I) The value of Units purchased is to be remitted through bank channel, (II) The money invested in Units and benefits thereon are not allowed to be repatriated, (III) The investors must mention their local and bank addresses in Bangladesh for convenience of registration of Units. Investment by Foreigners Residing in Bangladesh The foreign nationals residing in Bangladesh may also invest in Unit Certificates, provided they produce certificates to the effect that money being invested are their own savings and is not borrowed as loan or overdraft from any bank. These certificates are to be collected from a Gazetted Officer or a Banker not below the rank or Deputy General Manager. Fund Management The responsibility of managing the fund rests on ICB for which management fee @ Tk. 1. 25 per Unit (net outstanding) is charged. The Corporation also discharges the responsibility of loading and unloading of securities in and from the portfolio in the interest of the Unit holders. It is also the custodian of all assets of the fund. Dividend The total income earned on investment/ deployment of funds, net of expenditures incurred, in a financial year is distributed among the unit holders as dividend. Dividend is normally declared at the end of July each year by the Board of Directors of ICB. Dividend Warrants are dispatched soon after declaration of dividend. Since launching of the scheme in 1981 till FY 2004-05 the rates of yearly dividend declared/ paid are as under: Figure 2. 4: dividend performance of ICB unit fund The graph shows that the fund provides an attractive cash dividend each year to the highest of 25% in 1988-89 and to the lowest of 11. 01% in 2004-2005. Figure 2. 5: Dividend yield on ICB unit fund The graph shows a dividend yield on opening price of the unit fund. Tax Benefits (I) Investment in Units enjoys the benefit of Investment Allowance under Sec. 44 of Income Tax ordinance 1984. (II) Units are treated as approved securities in accordance with the Section 2993 of the Companies Act. 1994 and Insurance Act,   1938. These are also treated as Securities as per Sec. 20 of the Trust Act, 1882. Cumulative Investment Plan (CIP) Under this scheme a holder instead of receiving dividend may reinvest such dividend income accrued for purchasing Unit at a confessional rate. In such case, Units are issued at Tk. 1. 00 less than t he opening price of the financial year. 2. 13 Development Activities of ICB Equity support through consortium arrangement ICB inve

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Selecting a Supplier or Contractor - Research Paper Example The four different projects chosen include that of production of electronic products, construction of a retail outlet, manufacturing glass containers and construction of residential buildings. The criteria for supplier selection followed by these projects include that of quality, the speed of delivery, cost and reputation respectively. After analyzing these criteria, a comparison of these supplier selection methods has been given along with the critique that identifies the best method of supplier selection. Every business has the impact of competition in the market due to increased globalization and various technological advancements. In such a competitive scenario, good supply chain becomes an important part of the corporate strategy. Coyle, Bardi, and Langey (2003) say that this prime need has driven the logistics managers to concentrate more on supplier capabilities, conceptualizing and designing and implementing the supply process. Traditionally, there were only a few criteria like cost, delivery time and quality of the goods that were mainly concerned with supplier selection says Smith et al (1963), in the recent there are many other criteria in selecting a suitable supplier. Selecting a competent supplier becomes the key to the production and delivery of high-quality products. Hence the supply chain managers need to adopt a proper strategy for selecting the suppliers based on some criteria. Selecting and maintaining a good supplier involves an important decision regarding the purchase of quality goods as it leads to quality products. The selection of competent suppliers can be based on various criteria as prescribed by Dickson (1996) are the net price quoted by the supplier, the reputation of the supplier, the extent up to which the supplier is able to meet the quality requirements, the replacement or

Sylvias Bar Essay Example | Topics and Well Written Essays - 1250 words

Sylvias Bar - Essay Example It did good business, attracting high volume of customers and earning sizable profits from its beginning in the late 1980s till the mid-2000s. From the late of 2000s, its profits started to decline, as the flow of customers reduced to abysmal levels, even close the bar for few days of the week. The response from the customers dwindled because of Sylvia’s long-standing strategies of offering products and services at high cost, playing outdated music and also due to the advent of more modern bars in the neighbourhood. This report will focus on the Sylvia’s Bar and will discuss its current situation or problems, coming up with recommendations for it to manage those problems. Cost and menu High cost in the sense, Sylvia’s was established as a high class wine and cocktail bar, aimed at the customers, who constitute the top end of the market. Because of this focus on a particular target segment, the price of the drinks and the food was on the higher side. Although Sylv ia’s Bar wanted to focus more on these high segment, who are able to pay the high prices. In the fact, with this pricing restrict its customer base. Due to these high pricing, other segments of the wide prospective customer base look for other options that the bar has to throw ingredients by the reduction of the customers, and this was validated by Sylvia’s waitress, Kate. â€Å"We throw too much food away, I’m not sure that the customers in town are looking for this kind of fancy stuff†. ... (Piron 2000). (Vickers and Renand 2003). So, by setting price on the basis of industry standards, and equal or less than its competitors, Sylvia’s Bar can expand its customer segment. Even while bringing in more customers, care should be taken not to compromise on the quality. Staffing The insistence of using only classically trained cocktail bar staff, who have completed a course in bar work at South Birmingham College, negatively impacts the finances of the Sylvia’s Bar. As these particular staff demand payment, which are double the ones paid to the casual bar workers, Sylvia has to allocate a sizable financial resources for the salary of these staffs, which further eats into their income. As the customers do not particularly insist on qualified employees from a particular academic institution and may not even know that fact, it is not compulsory for Sylvia’s Bar to recruit only them. Instead, they can recruit skilled and enterprising casual employees and impor tantly train them according to the job needs. (Mattila 1999). Training programs may not cost sizably, and on the other hand, the trained casual labourers can be paid only half of the salary paid to the other set of employees, thus saving crucial finances for the firm. (Kerfoot, Davies & Ward 2003). Sylvia’s bar also faced certain employee centric problems. Firstly, the employees had to wear a particular set of uniforms, and that according to certain employees was also very outdated. Barman Paul, 32 had this to say about it, â€Å"These uniforms are so dated and formal. I feel like I’m working in a church not a bar!† Importantly, this outdated feel of the uniforms would also negatively reflect among the customers, who might want to see employees clad in

Zara Business Essay Example | Topics and Well Written Essays - 750 words

Zara Business - Essay Example From there it expanded into 79 countries with 1,830 stores all across Asia, Europe, Africa and America (Qureshi, Store Wars: Zara and Mango, 2012).Its main focus has always been creativity, quality of design and rapid response time. Zara’s main target customers have always been young, price-conscious people who are very sensitive to latest fashion trends. According to the article ‘Analyzing Zara’s Business model’ its product line is divided in to 60% for women, 25% for men and 15% fast growing children (Analysing Zara’s business model , 2011). Main customers of Zara are middle class urban women for whom fashion means everything. The customers of this particular brand wants trendy, fashionable and unique outfits at an affordable price and up to date with the new up coming fashion trends. Another unique characteristic of this particular brand is that they take very less time in identifying and bringing their products to shelves that is with in 30 days where as others may take around 3-4 months (Analysing Zara’s business model , 2011). This is possible mainly due to their control on garment supply chain from design to retail unlike many other competitive stores. It is possible as most of the manufacturing is being done in-house. 50% of the products are produced in house where as 46% are framed out into ready to cut pieces (Roux, 2002) Zara’s core mission has always been a blend of creative, quality and rapid response to market demands. To achieve this a business model was framed that depended on two main points. One being quick response to changing fashion and second being involvement of employees at a large scale. For instance a store manager could decide which clothes to put on sale in that particular store according to the response of customers shopping there. The vaiety of clothing also becomes a main selling point of the brand. In the article Reign of Spain the author talks about how a model never stays in the s hop for more than four weeks. This increases the visists of the customers, for Zara’s its 17 times a year where as for other similar competitive stores its only 3 to 4 times a year (Roux, 2002). In around four to five weeks new collections are available. It’s designer team comprises of around 2 thousand designers which produce 12,000 models each year for sale which are designed kept in mind customer preferences, wishes and demands. Since every four weeks the stores are hit by new models the quantity produced of each model is very less making it a unique piece which makes customers rush to stores to grab them before they run out this has made its customers in to serious impulse buyers. Unlike other brands Zara spends very less on advertisement which is around 0.3% of its total revenue unlike other competitors which spend around 3-4%. Instead they spend heavily on their stores which are located in prime locations of cities. The complany is built upon a vertically integra ted demand and supply chain while most textile chains rely on outsourcing and cheap labor in China. Vertically integrated are companies that are linked together by a single owner it gives Zara a greater control over the whole process from manufacture to retail which helps it fulfill its main idea of its business plan which is to respond quickly to demands and fashion trends. The operational cycle of Zara includes three main basic steps ordering, fulfillment and design and manufacturing. Each store places order twice a week to headquarters to replenish items and for new stocks. These orders are sent to stores in two days. The design and manufacturing goes throughout the year. New models are continously hitting stores unlike other competitive firms that lauch collections for just summer, spring, fall and winter. Another competitive

Blue Shield 65 Plus Assignment Example | Topics and Well Written Essays - 500 words - 1

Blue Shield 65 Plus - Assignment Example This study declares that similar to other Medicare companies, Blue Shield 65 Plus caters to people ages 65 and above who are considered as senior citizens, and people below 65 years old with specific disabilities. Moreover, the aim of the communication of Blue Shield 65 Plus is to give out information to the market. It aims to persuade the consumers, and prospective market to enroll in its Medicare plans. According to The Henry J. Kaiser Family Foundation, in order to realize the purpose of a Medicare company’s communication, which includes Blue Shield 65 Plus, it must include in its advertisements the extra benefits and the savings the customers may get while enrolled in the plan. The approach of the ads must be simple and properly articulated for easy understanding. Also, the coverage of the plan on prescription drugs of the plan is also essential. Moreover, it is also advantageous that the advertisements include the customers’ freedom to choose and change his or her doctor and that there is no need to refer to a specialist. Lastly, the communication must include that Blue Shield 65 Plus is a brand that can be trusted in terms of the services that it provides. Moreover, it is important to bear in mind that the advertisement messages must be properly formulated for it to serve its optimum purpose. The message must be looked at in a manner of how it is conveyed, the structure, and its content. It is highly recommended that Blue Shield 65 Plus must continue advertising in television due to the fact that most of the seniors perceive television as their number one source of information.  

History of Brazil Essay Example for Free

History of Brazil Essay Brazil the only Portuguese speaking country of South America, was founded by Spanish and Portuguese in the same year of 1500, but was handed over to the Portugal in the agreement of Torsdesillas (Bamber Gascoigne,gtu). Since the time of its colonization from 1500 until the late 1930, export of principal products has been subjected. Joao VI the sole sovereign when returned to Portugal, his apparent to the throne was Pedro, who surged a sequence of progressive political differences, which ultimately led to the independence of Brazil by 1822, leading to an era of kingship by Dom Pedro. His son Pedro II continued his legacy and led a more efficient government more than his father till 1889, where he was deposed by military coup. After that there were two more military coups in 1930 and later in 1964, but since 1985, democracy slowly returned to the snagged state. But in the midst of all the political and military drama, somehow the country’s economy was on the move. The history of the country indicates of its troubled pasts, and its love affairs with military coups, but since the last three decades, the country’s political frame has been stable, leading to ample opportunity for company like ours. Brazil Demography and Economy Brazil today has a population of more than 183 million people, with a high literacy rate of more than 86% (BIGS, Brazil today). A very strong positive indication, of a healthy literate population, briefly a very lucrative consumer mass for our product. Brazil comes in one of the front leaders of a leading economy in the world. It is an elite member of trillion dollar GDP group of the world. It is one of the fastest growing economies of the world, and slowly but surely, this country has become members of varied monetary unions, like Mercosur, and G-20. Brazil’s GDP has grown at an alarming 5. 1 % in the financial year of 2007, and with a very strong GDP per capita income of $8800 and also the Brazilian currency BRL$ is very strong, as 1 USD is near about less than BRL$ 2. This 8th largest economy of the world would prove to provide substantial buyers of our product in due course of time. Brazil’s Lifestyle Brazilian culture is a very open culture, with very less of taboos, and from the early times has been into music, and dance. Being a highly diversified culture with a huge mix of ethnic groups, Brazil has a very rich heritage. Music is one of the lifelines of Brazilians, and it can be stated form the fact that, way before their independence, Brazil had its own set of music schools, set up in different part of the country . This 5th largest population of the world is very inclined to towards singing and dancing customs, and being a prosperous nation 98% of the large population has access to television, where their local movie industry which also being the 10th largest in the world is highly well-liked and watched. Brazil’s inclination towards sports is not hidden from the world, and especially their superior liking for football. The population in general is known to be very hard working, but very apposite to recreation in sports and music. Status of demands of subwoofer in cars Brazil has a very large automobile industry, and in the year 2005, Brazil manufactured more than 1.65 million cars only for its domestic market (Elisangela Cordeiro), also according to the Euro monitor consumer electronics reporting Brazil, the in-car electronics such as woofers and media players along with other electronics in the market are available at cheap installment schemes, which are luring the common man into packing his car with accessories, like car speakers and woofers. Brazil has got a very huge young population, which would be our main targets for our products, as woofers are a very mandatory thing for the young generation of Brazilians. Recommendation Our first strategy to enter Brazilian woofer market is to tie up with the local car manufacturers, and to fit in our woofers in the local brands at reasonable prices. Since Brazil has a huge automobile market, we can tap into its boom and accessories the cars with our woofers. Secondly, the basic nature of a Brazilian is very open, and everyone has very strong interest in the different genres of music, we can capitalize on this nature of theirs and we can have ads on the lines of their open nature along with, their music, being played by our subwoofer. The only competition from a brand as repute as ours is from the company â€Å"BOSE†, but it only has its sales distributors, retail and commercial in Sao Paulo, if we can pull up our regional centre in Sao Paulo as well as the capital Brasilia , then we would be miles ahead of BOSE in the Brazilian sphere, as we would be able to reach a lot of people with our products, also these two cities are the main hotspot places for tourists, mainly coming from other regions of Latin America, and we would start catering to the domestic as well as the other Latin American mass would enhance the company’s reputation in nationally as well as in other neighboring countries. We can have our shops in malls and in different youth oriented streets and places, apart from having our outlets at car showrooms. Another thing that is strongly recommended is to tap into local manufacturing structure as Brazil has a very high amount of labor population who work at remunerations which are much aff ordable to us than the labor unit in the US, also the transportation costs would exceed cost price of our product. It is more suitable to link up with government in Brazil for facilitating us with the required formalities, and also the required waivers being handed out to us, in return for the unit which would commence in Brazil, in turn handing out jobs to the local population. Once we establish our market in the region, we can market our product more to the masses by making changes in its core design and, we can create an innovative JBL series subwoofer, which can be in a shape of a football (sphere), which would woo youngsters and football lovers. Further details regarding this matter will be mailed to you from the Research Development wing. Conclusion Brazil has a very booming economy, and it is being rated with countries like India and China who are, the fastest growing economies of the world. This country has a very reasonable labor population which would cut down our costs by a huge margin, when we start manufacturing here. The regional centers which I have recommended would enhance our market in the country, and we if we can tap into the free nature and love of music of the Brazilians , then we would have not only a huge market in this country but also other Latin American countries who would follow Brazil’s in pursuit. Apart from Brazil’s distressed past of military coups, there is nothing else that negates Brazil as one of the prime future market for our company Work Cited Bamber Gascoigne, â€Å"History of Brazil†, Jan 14th 2008 http://www. historyworld. net/wrldhis/PlainTextHistories. asp? historyid=aa88

Introduction To Space Technology Information Technology Essay

Introduction To Space Technology Information Technology Essay Without them, space exploration would be impossible. Rockets and space shuttles help transport people to space. Satellite telescopes and space stations help people explore space. They also help us understand space better by taking pictures of stellar objects. The ISS International Space Station has begun constructed in 1998.It will house up to 700 astronauts with a connection of modules as two football fields. There might also be a satellite that can take pictures far beyond what we have today. (1) Highly developed space technologies are required to make possible many potential space activities and to less the cost and improve the performances of others. The National Aeronautics and Space Act of 1958, which created the NASA, directed the Agency to accomplish the Nations Civil Space Activities to contribute significantly to the preservation of the role of the United States as a leader in Aeronautical and Space Sciences and Technology. (2) We all know the importance of satellite based technology in our daily lives as well as conventional military hard ware. After the cold war the development of satellites and electronic warfare technology enter into force of almost every field of conventional warfare. The usage of satellite technology primarily concerns and tactical advantages based on satellite surveillance, communication affect the opponents in conventional war. The problem of poor visibility or bad weather does not affect satellite weapons such as joint direct munitions (JDAM) and joined stand off weapon (JSOW). These weapons can be deployed in all weather condition without the need of any ground support it works upon GPS. Development of Pakistans space program: The Space and Upper Atmosphere Research Commission (SUPARCO) also known as the Pakistan Space Agency of the Pakistani government, responsible for nations public space program. SUPARCO was established on September 16, 1961 by the order of President Muhammad Ayub Khan on the advice of its founding director, Abdus Salam. (3) History: Pakistans mission to pursue peaceful space technology began in the early 1960s.It was Dr. Abdus Salams advice to the president of Pakistan to establish a National Space Agency of Pakistan. It was decided to set up a committee dealing with Space Sciences. A Space Science Research Wing of the Pakistans Atomic Energy Commission (PAEC ) was established through an Executive order of the President of Pakistan General Ayub Khan which was addressed to Dr.I H Usmani , the chairman of PAEC . The program of rocket firings was entrusted to the chairman of PAEC. (4) Dr. Abdus Salam was appointed its first chairman. On June 7 1962, under the leadership of Air Cdre. Wladyslaw Jozef Marian Turowicz, a two stage rocket, Rehbar-I was launched from the Sonmiani Satellite Launch Center. Pakistan was the third country in Asia and the tenth in the world to conduct such a launching. (5) The United States launch first rocket from Pakistani soil. The launch used the combination of two US rocket motors the NIKE CAJUN launched from Sonmiani, 50 Km west from Karachi .( 6 ) The rocket reached an altitude of almost 130 Km. The US Space Agency NASA hailed the launch at the beginning of a program continuing co-operation in space research of mutual interest. The NASA SUPARCO co-operation agreement called for the training of Pakistani scientists and technicians at Guddard space flight center and Wallops Island NASA also set up research associates and fellowship programs at American universities. In 1981 SUPARCO planed Astronautic program with NASA. But due to the space shuttle challenger incident the program was p ut on hold. Later it was cancelled in 1990. (6) On 8 March 1966, President Ayub Khan constituted SUPARCO as a separate organization. Dr Abdus Salam , along with Dr. W J M Turowicz, led a team of aerospace engineers and rocket scientists to design a Rehbar sounding rocket series.(7) Dr Abdus Salam also established space centers in different cities of Pakistan like Karachi and Lahore. He also initiated an aerospace engineering program in SUPARCO. He was one of the pioneering figures in the 1960s to lead Pakistan in the space power world. He knows the importance of space and nuclear technology his efforts were also involved in the development and installation of high powered astronomical telescope at Karachi University. He also established aero space engineering course at PAF Academy.(8) Though the Pakistani space program was frozen several times like in 1970s, by the government of Pakistan , President Yahya Khan and PM Zulfiqar Ali Bhutto froze it more than a decade then again in 1993s both nuclear and space program due to economic depression. This space program was defreeze by then President General Pervaiz Mussharraf and the agency developed a satellite development program rapidly but on the other hand Indian space Research organization(ISRO) progress very well as ESA, NASA and Chinese space agency. SUPARCO faced strict sanctions on the import of various materials required to manufacture and launch rockets during early 90s from USA and Russia. The delay of Russian launch vehicle also resulting the long delay for th e launch of Badr B, Pakistans second satellite, These events had an immense impact on SUPARCOs plan to launch and place its own satellite in orbit. (9) Beside the talented space and nuclear scientists Pakistan followed the policy of deliberate ambiguity for many decades. Thats why its still unclear what the plans and operations as well as the capability of SUPARCO and its facilities are? Comparison of Pakistan and India space program: Badr -1: SUPARCO with the help of Amateur Radio Society started building the small Amateur radio satellite in late 1986. Badr -1 was planned to be launched on the US Space Shuttle, but Challenger explosion and consequent delay in American flight changed the plan. (10) Badr -A was Pakistans first indigenously developed satellite and was launched from the Xichang Launcher Center, China on July 16, 1990 aboard a Chinese Long March 2E rocket. Badr- 1 weighted 150 pounds. It was designed for a circular orbit at 250- 300 miles altitude, the satellite successfully completed its designed life. (11) Badr -B: Pakistans second satellite was Badr -B .It was an earth observation satellite and was launched on 10 December 2001 on a Zenit 2 rocket from Baikonur Cosmodrome, Kazakhstan. It was designed by Space Innovations Limited from the UK. (12) Pakistan has only operated one small satellite in LEO; the countrys modest space program has long been leaning toward remote sensing applications. A data processing infrastructure has been established to exploit earth observation data transmitted by Land sat, NOAA, and SPOT satellites. Further SUPARCO is preparing for the commercial launch of a simple Pakistani satellite with earth imaging capabilities. It was expected that SUPARCO would launch the second Badar -II satellite in1993 but target was not achieved. The Badr -II will help Pakistan in making of infrastructure for space competent system and achievement of know how and capability in the field of satellite attitude control. (12) PakSat-1: PakSat-1 was Pakistans first geostationary satellite. The satellite was initially known as Palapa C1 and was designed to serve Indonesia after an electronics failure, it was renamed Anatolia 1 and then renamed again to PakSat-1i in 2002.it was originally manufactured by Boeing and used the HS 601 spacecraft design. It was launched on February 1, 1996. (13) PakSat-1 currently severing a number of regional customers including, TV broadcasters, telecom companies, data and broad band internet services providers as well as government organizations. PakSat-1 will be replaced before its end of life by PakSat- 1R to ensure continuity of service. (14) PakSat- 1R Satellite: PakSat- 1R Satellite will replace the existing paksat -1 in 2010.under the agreement Telesat will help the Pakistani agency find a manufacturer, technical and commercial advice and also to help supervise the construction of new satellite and monitor the launch and in-orbit testing services. Haft Ballistic Missile Project: Despite of space program SUPARCO initiated Pakistan nuclear missile development program in early 1980s.scientists from KRL and SUPARCO developed colaboratlly Haft missiles series. It was reviled in 1989.with the successful launch of an indigenous multi stage rocket into the deep space. Which was said 480 Km deep into the space. Recently SUPARCO has tested two high altitude hyper sonic sounding rockets (Shaper and Rakhnum). This is claimed to be a 3 stage liquid fuel rocket and get the altitude of 1000 Km. (15) Shaheen III satellite launch vehicle (SLV): Its a 3 stage SLV and can carry the payload of 100 Kg to an orbit of 450-500 km above earth surface. (16) Indian Space Research Organization: The national space program was formally organized in 1972 with the formation of space commission, the department of space (DOS) and Indian space organization (ISRO) to promote the development and application of space technology and socio economic benefit of the country. Space commission is the policy making body and these policies are implemented by department of space .research and development activities are carried out through Indian space research orgnisation.the over all co-ordination of the space program is carried out by program offices of ISRO in different areas like satellite communication, earth observation systems, space sciences, launch vehicles, international co-operation and industrial co-ordination etc. (17) Major establishments of the department of space include: National remote sensing agency (NRSA): NRSA located in Haiderabad is an antonymous institution supported by department of space .its main task is acquisition, processing and distribution of data from remote sensing satellites. It has an earth station that receives data from Indian remote sensing satellites, US-LANDSAT and NOAA, French SPOT and also acquires micro wave data from European remote sensing satellite (ERS).NRSA is also responsible for Indian institute at Dehradun.(17) b) Physical research laboratory (PRL): it is located at Ahmadabad. It is a premier center for research in space and allied sciences. PRLs main research areas are ASTRONOMY, ASTRO PHYSICS, PLANETARY ATMOSPHERE, EARTH SCIENCES, SOLAR SYSTEMS STUDIES and THEORETCIAL PHYSICS. It also manages solar observatory at Udaipur. c) National mesosphere -stratosphere troposphere radar facility (NMRF): this facility conducts atmospheric research and also available for national and international scientists.(17) d) Vikram sarabhai space center (VSSC): it is located at Thiruvanthapuram. It is the main establishment for all rockets and launch vehicle programs. Its major research areas are Aeronautics, Launch Vehicles, Avionics, Propellants, and Composites, Solid propulsion, mechanical computers and system reliability.(17) e) ISRO Satellite center (ISAC): ISAC is the lead establishment in research and development of satellite technology. Its main areas of activities are Power systems, Digital systems, communications, Microwaves, Thermal systems, Space craft mechanisms, Assembly and testing. It also carries out research and development in the field of Electro optic sensors and other relevant systems of satellites.(17) f)Shar center : Shar Center is located in Sriharikota (Tamilnado)is the main launch center of ISRO. It acquired all facilities required for a launch mission including range instrumentation, mission analysis, range safety, and meteorology. This center also has the facilities for processing and ground testing solid propellant motors required for launch vehicles. Shar also operates the launch ranges at Kerala. (18) g) Liquid propulsion systems center (LPSC): the activities of LPSC are carried out at different places like Bangalore Thiruvanthapuram. h) Space application center (SAC): Space application center is located at Ahmadabad. Its major areas of activity consist of satellite communication and remote sensing. Including micro wave remote sensing .it also operates Delhi Earth station for satellite communication. (18) i) ISRO Telemetry, tracking and command network (ISTRAC): This establishment provides mission support nearer satellites and launch vehicle missions. It has also established a vast network of ground stations at Bangalore, Lucknow, port blar, siriharikota, tamilnado , bears lake ,Mauritius and many others . j)Development and educational communicational unit (DECU): it is located at Ahmadabad. It is involved in conception, definition, planning, and implementation and socio economic evaluation of space application.(19) k) INSAT Master control facility (MCF): INSAT Master control facility is located at Hassan Karnatka.it is responsible for all post launch operations on INSAT satellites which includes orbit Manoeubres , station keeping and on orbit operation of the space craft.(19) l) ISRO Inertial system unit (IISU): It is located at Thiruvanthapuram. Its area of research and development includes navigation systems, satellites inertial systems integration and simulation of inertial systems, bearing and space technology.(19) m)Antrix Corporation limited: it is marketing agency under the department of space which markets satellite components and sub systems. It also provides satellite fabrication, launch services and tracking facilities. (20) Major technological programs and achievements: From a Modest beginning in 1963 with the launch of small rocket from Thumba Thiruvanthapuram, Indian space program has come along way. Today Indian national satellite system (INSAT)and the Indian remote sensing satellite system (IRS)are the vital elements of national infra structure for telecommunication , television broad casting, meteorology , survey and management of resources are now designed and build indegiousnly INSAT satellite system. It is one of the largest domestic satellite systems in the world today. INSAT Systems got a substantial boost in 1999-2000 with the commission of INSAT- 2E and the planned launch of first two INSAT 3 A and INSAT 3 V of the five satellite series. It also extended C-band transponders. (21) IRS Satellite Systems: An Indian remote sensing satellite system comprises a constellation of four satellites. IRS Satellite Systems provides remote sensing services. Data provided by these satellites is put to use for application like agricultural crop acreage and yield estimation, ground water targeting, identification of waste land for possible reclamation, forest survey snow melting, mineral prospects, thematic mapping, and urban planning environmental monitoring and so on. Data from IRS Satellite is also acquired and used by several other countries like Korea, Japan, Thailand, Europe and Dubai under commercial agreements. The IRS series includes OCEAN SAT, CARTOSAT and RESOURCESAT and many others.(21) Satellite Launch Vehicles: ISRO has made substantial progress in the development of launch vehicle. The Polar Satellite Launch Vehicle (PSLV) has already became operational with the successful launch of IRS 1.it is also plan to launch all future satellites in the IRS series by this vehicle. The PSLV is also being offered other countries to launch their satellites. A beginning was made by launching IRS -P4 (OCEAN SAT) PSLV-C2 was used to launched two small satellites namely the Korean (KISAT) and the German TUBSAT as pay load.(21) Part 2: Militarization of space: Space plays an increasing role in military activities. Over 800 satellites orbit the earth, many of which have military uses, from reconnaissance to guiding weapon systems. Satellites are the main focus of military activities. They are widely used to provide support for military or security related activities such as verifying compliance with arms control treaties. They are also increasingly used to provide direct support for military operations. During the 2004 Iraq war, 68% of munitions were satellite guided. (22) Right from the beginning satellite has an important military role during war time as well as in peace time.dependance on them is increased dramatically in last two decades. The previous methods of reconnaissance, communication, remote sensing etc are largely responsible for increasing role of military satellites. Some of the most commonly military satellite applications are; Reconnaissance and intelligence gathering functions. Command and communication Navigation satellites Early warning satellites Meteorological satellites Nuclear detection satellites (23) 1: Reconnaissance and intelligence gathering functions: The most known types of military satellites are these used to verify the extant and the composition of military forces. The most important role of Reconnaissance and intelligence gathering satellites is the verification of the agreed limitation of strategic arms and monitoring of new military developments. It is achieved by a variety of electronic and photo graphic means. Command and communication: Command and communication is one such application the satellites today meant for the purpose can provide instant communication between the operational forces and their national command authorities irrespective of the distance or time of the day. (23) Navigation satellites: The Navigation satellites are capable of providing data to enable position fixing with an accuracy of few meters. Early warning satellites: The role of these satellites is to detect the exhaust of rising ICBMs. These satellites carry large telescopes and television cameras to transmit photos of detected ICBMs.(24) Meteorological satellites: Uses of these satellites like weather forecast have been earlier benefits of space program. The weather satellites not only provide long range forecast for military planners, they also play a key roll in reconnaissance satellites. They provide advance information to the mission planners of reconnaissance satellite on whether the target area will be clear of clouds cover or not. When the reconnaissance satellite makes its plan, this eliminates the wastage of reconnaissance film.(24) Nuclear detection satellites: The idea of nuclear detection using satellites originated by USA. While finding ways to police a nuclear test ban treaty. The solution came in the form of Wela satellites. This has the capability of detection a nuclear explosion at the distance of Venus or Mars and reports its yield and other characteristics. What now after 1970 IMEWS (integrated missile early warning satellites) had taken over its place. (24) How India can weaponise space to effect conventional and strategic forces: ISRO opposed military applications for duel use projects such as SLV3, (satellite launch vehicle- 3) .Ultimately the defense research and DRDO based missile program headed by Dr. Abdul Kalam who was the project in charge of SLV3 at ISRO, DRDO borrowed him with other scientists and other technology resources from ISRO directly for Indian missile program at DRDO where Dr. Abdul Kalam designed the Agni missile using the SLV 3 solid first stage and liquid fuel second stage (Prithvi Missile derived). IRS and INSAT were mainly intended and used for civilian economic purposes. They also offered military spinoff in 1996.ministary of defense blocked the use of IRS 1 C by the Indian environment and agriculture ministry in order to monitor ballistic missile near Indian borders. Indian air forces doctrine also aspired to use space assets for surveillance and battle management. (25) Satellite navigations allow precision in the delivery of weapons targets, increasing their lethality. Satellite navigations can be regarded as a force multiplier. Satellite navigations also allow forces to be directed and locate themselves more easily in the fog of war. According to the report by IANS February 9th 2010 India is developing an intelligence satellite for detecting conversations and espionage activities. According to Defense electronics research laboratory (DERL) Rupees 10 billion has been allocated in for this project in cooperation with ISRO. The satellite will be fitted with the electronic sensors are more powerful than the remote sensors satellites of ISRO. Space craft should be ready to launch by 2014. Anti-Satellites Weapons: According to a TV press briefing during the 97th Indian science conference the director general DRDO announced that India is developing lasers and Exo-Atmospheric Kill Vehicle that would be combined to produce a weapon to destroy enemy satellites in orbit. (26) Later in February 10 2010 DG DRDO and Scientific advisor Dr V K Saraswat said that India has all the building blocks necessary to integrate an anti- satellite weapon to neutralize the hostile satellites in low earth and polar orbits. He also said that the propulsion module and kill vehicles already existed in principle on the Agni missile series .he also said India doesnt had a formal anti-satellite weapon as yet, however anti- satellite weapons could be developed as the part of Indian Ballistic missile program which would be completed in 2014. (27) India also identified development of ASAT for electronic and physical destruction of satellites. In both LEO and the higher GEO synchronous orbits in its long term prospective plan s (2012-2027). (28) Launch capabilities: Geopolitical and economic positions during 1960s and 1970s forced India to start its own launch vehicle program. At its first days from 1960-70 India successfully developed a sounding rocket program. (29) By the 1980 the search yielded the satellite launch vehicle 3 and the more advanced augmented Satellite launched vehicle (ASLV) completed with operational supporting infrastructure. ISRO applied its capabilities and resources for the advancement of launch vehicle technology resulting in creation of polar satellite launch vehicle and geosynchronous satellite launch vehicle (GSLV). 1: Satellite launch vehicles (SLVs) SLV was a four stage solid fuel light launcher. It was intended to reach the height of 500 Km and can carry the pay load of 40 Kg. (30) Augmented satellite launch vehicle (ASLV): It was a five stage solid propellant rocket with the capability of placing a 150 Kg satellite in to LEO.THIS PROJECT WAS STARTED BY THE ISRO in early 1980s for the pay load to be placed into geostationary orbit. Its design was based on SLV later it was decommissioned in 1994. (31) 2: Polar satellite launch vehicle (PSLV): It was an expandable launch system developed to launch Indian remote sensing satellites into sun synchronous orbits .PSLVs can also launch small satellites in geostationary transfer orbit (GTO). The reliability of PSLV is proven by that it has launched 30 spacecrafts 14 Indian and 16 from other countries into a verity of orbits. (32) It also successfully launched 10 satellites at a time in April 2008 by making a new world record previously held by Russia. (33) 3: Geo synchronous satellite launch vehicle (GSLV): It is also an expandable launch system to enable India to launch its INSAT type satellites in to the orbit by making India less depending on other foreign rockets. It is the ISROs heaviest SLV which is capable of five tons payload to low earth orbit. (34) 4: Geo synchronous satellite launch vehicle Mark III (GSLV): It is a launch vehicle under development by ISRO which is capable to launch heavy satellites in geostationary orbits. Due to this development India will become non dependent for heavy lifting on foreign rockets. Its first flight is schedule in 2011. (35) Satellites launched by South Asian Countries: Till 2008 India launched 34 satellites indigenously or by other countries help. On the other hand Pakistan has launched 5 payloads in the orbits. Where as China has launched 83 payloads. (36) Areas of concern: In December 2006indian defense establishment conducted the first test of its missiles defense capabilities, in which an interceptor PAD destroyed a Prithvi SRBM at a height of roughly 50 Km. DRDO chief M Nataranjan stated that it was a major achievement of India although he acknowledged it would be some time before India might possess an anti-satellite capability.(37) Following the PAD anti-missile test, India conducted 13th test of BrahMos cruise missile. However it has not been able to develop a military satellite for the armed forces, along -standing demand of the latter. The military satellite projects being developed in cooperation with ISRO (38) When India will achieve its aims of armed forces military satellites that would be a highly vulnerable time for Pakistan. How Pakistan can respond: Pakistan is surrounded by two symbiotic (China India) and also Iran who is struggling in missile and space program. These countries have affected missile systems and satellite networks. To counter with these elements Pakistan must have an effective missile delivery system as well as effective missile defense systems. Both of these systems could not achieve the maximum results without any military satellite network. Reconnaissance and spying of the ground based troops, their movements and jamming or intercepting enemys network. All these elements based on spy satellites. To monitor the launch of enemys ballistic missile we should get thermal imaging capable satellites. In modern warfare systems all the three services should be interlinked with the battle fields with the help of sensors radars and communication satellites for the early warning and central command and control. Smart weapons like JADAMs their acquiring will be an asset for air force in this expensive race. Part 3: Economic effects of space race between India and Pakistan: The ISRO will receive 57.78 billion rupees ($1.25 bn) for 2010.its a 38 % increase over last year. 21 billion Rs will go to launch vehicle technology development while satellite technology will receive 10 billion Rs, a 45 % increase over the 2009 fund.(http//:www.space.com/news/india-space-budget-increase-sn-100315.html) Budget of SUPARCO in 2009 was 3.12 billion rupees for its four on going projects in the next fiscal year. Rs 1.764 billion for PakSat-1R. Rs 100 million for the development of environment validation and testing (EVT) Satellite. Rs 84 for intelligence development and capacity building in satellite engineering and technology etc. (39) Both (India Pakistan) are the nations with one of the poorest populations in the world who are investing billions of dollars into space missions and satellite launches. Instead to over come the poverty both are neglecting the core issue. Pakistan has no comparison with India in space race and without a doubt Pakistan can not afford the space race. How Indian developments are being seen by international world especially China and USA: The India Space Program considered being a sign of an Indian effort which can maintain some measure of equality with China on the world stage or to create its own claim to great power status. Because its still behind China. There has been increasing debate of an Asian space race among China, India, and Japan to explore the lunar surface. India has over 40 years of experience in space and has achieved a comparatively strong and mature capability in space applications. In technological terms, Indian space program is roughly comparable with Chinas program except in human spaceflight and exploration. While India spends a bit more than Russia does on its space program. The percentage of GDP that India devotes to space is second to USA. India moves to advance internationalize space exploration and any cooperation with USA or Russia, will have a major impact on space exploration throughout the next decade and beyond. Although India cant have strategic parity with China, but the Chinese ASAT test has highlighted a new Indian vulnerability, as the country is about to develop in coming years modern military observation and communication satellites. Conflict between India and Pakistan, with the potential of nuclear armed missiles exchange remains a source of international concern. In such conflict , to de-escalate the crisis China can provide reconnaissance to Pakistan, of Indian troops movements and mobile- missile deployments would be crucial for india. While using its ASAT on behalf of its ally to blind India could be a serious concern for India. To counter these threats India can seek reinforce intelligence ties to USA and Russia to use their capabilities which China might be reluctant to target. (40) Conclusion: As the comparison of India and Pakistan we can clearly see that Indias space and nuclear program is going by every means. Whether it is spying satellites or deployments of other countries spy satellites like Israel or its anti- satellite programs. All these areas of concerns destabilized the integrity of Pakistan as well as other countries like Iran and China. International community can create obstacle in permissions and clearances for Pakistans nuclear and missiles due to Israel and Indian influence on world community. But the thing is that India has a clear intention to advance its space and nuclear program, Pakistan will have to take countermeasures which will include deploying its own satellites and there is risks that in this respect may it provoke a space race that neither can afford. NOTES: 1:http://libary.thinkquest.org/j0112540/spacetek/index.html 2: http://www.nap.edu/openbook.php?record_id=6068page=5 3: history of SUPARCO 4: http://www.suparco.gov.pk/pages/history.asp 5: http://www.nap.edu/openbook.php?record_id=6068page=5 6:http://www.wisconsinproject.org/countries/Pakistan/hataf.html 7: http://www.nap.edu/openbook.php?record_id=6068page=5 8: http://www.nap.edu/openbook.php?record_id=6068page=5 9: history of SUPARCO 10: http://www.fas.org/ssp/guide/pakistan/earth 11: http://www.fas.org/ssp/guide/pakistan/earth 12: http://www.fas.org/ssp/guide/pakistan/earth 13: http://www.paksat.com.pk/ 14: http://www.paksat.com.pk/ 15: http://www.wisconsinproject.org/countries/Pakistan/hataf.html 16: (http//:en.wikipedea.org/wiki/space and Upper atmosphere Research commission 17: Dr. D C Agaraewal: satellite communication pg 344 18:Dr. D C Agaraewal: satellite communication pg 345 19:Dr. D C Agaraewal: satellite communication pg 347 20:Dr. D C Agaraewal: satellite communication pg 350 21:http://www.isro.org/lahnchvehicles/GSLVMARKIII/mark3.aspx 22: (POST note December 2006 # 273) 23: Dr. D C Agaraewal: satellite communication pg 354 24:Dr. D C Agaraewal: satellite communication pg 356 25: mistry, 94-95 26: peter B de seldingindia developing anti-satellite spacecrafts space .com 27: India developing weapon systems to neutralize enemys satellites Xinhua Newsagency.2010-01-03.reterived 2010 -01-03 28: http//:timesofindia.indiatimes .com/india/india-to-gear-up-4- star-wars/articles/show/5970384.cms) 29: http://www.isro.org/lahnchvehicles 30:ISRO vehicles. Jean