Managing Finance Principles and Techniques NML

Question: Describe about the Managing Finance Principles and Techniques of NML? Answer: Importance of costs in pricing strategy of NML Costs are important in pricing system as it provide NML to assess the price of the different products at overall profit or making profit separately. As stated by Berry and Jarvis (2005), costing method in NML is different comparing to others. Company used least square method of costing technique as there are three different products in its portfolio. Therefore, company has to deal with many mixed cost that are hidden in production of three products (Drury, 2009). In this context, NML is using the cost based pricing staretgy where all the costs are segregated into variable cost and fixed cost, thus introducing the cost based on flexible activity in operation (Glynn etal. 2003). Total Cost 7000 8000 9000 Units 200 300 400 Break Even 35 26.66667 22.5 Selling price (if Profit = 20%) 42 32 27 It can be analysed that by applying the cost based pricing, the selling price shows different value for different cost units. In order to gain a profit of 20%, the company might have to fix selling price of 42 for each product in order to cover the total cost of 7000. Therefore, it is similar for other costs. Design of a costing system and proposed improvements in costing and pricing system A costing system may be designed on basis of activities in the operation. The system is widely used in production as it provides the company opportunity of defining its costing method according to the activities (Harris and Sollis, 2003). The limitation that is associated with the existing costing system is that it may limit the ability of the company to price their product in different market segments. On the other hand, unrealized profit or revenue would be substantial. Moreover, the future demand for any particular product may not be accounted under this method. Activities Level of output Cost in Total Cost in Activity 1 200 **** Activity 2 300 **** Activity 3 400 **** Activity 4 500 **** **** Table 1: format for activity-based costing The system adapted by NML might be improved if it is changed into an activity based costing. Due to presence of costing details of every activity of different levels, it would be easier for the managers to control the cost of overall production (de Jong et al. 2013). By employing ABC method, the company would be receiving reliable and accurate results regarding costs. Moreover, the overheads that comprise variable costs and fixed costs can be controlled by effective monitoring and controlling of activities. Therefore, effective decision can be made by the firm relating to product lines profitability. Recommendations of proposals for improving the existing system Form the point of view of costing system, it is recommended that company must follow a controlling system so that cost can be controlled in many stages and thus increasing the operating margin. In order to improve the existing costing system, the company can adopt policy of competition based pricing. It will help the company in finalizing the product price after careful analysis of prices fixed by competitors. Once the product costs are calculated then the company can fix the price of their each product. Therefore, weakness of cost based pricing of the company can be overcome by adopting competition based pricing. Forecasting techniques for revenue and cost As stated in the problem, the forecasted increase in some financial matters has changed the financial statement of company. Due to change in sales and cost of sales, the increase in operating profit has gone up by 24.66%. Unchanged interest cost in coming year provides the company to post a better PAT in 2015 as estimated. According to Lin (2012), cost can be reduced by controlling the interest cost of borrowings. Further, rising in net working capital as projected, shows the way of reducing the cost of short-term loan. 2014 2015E turnover 300 330 cost of sales (deducting depreciation) 164 180.4 operating profit 120 149.6 24.66667 interest cost 30 30 pretax profit 90 119.6 corporation tax 24 28 profit after tax 66 91.6 proposed dividend 44 48.4 retained earnings 26 43.2 Table 2: forecasting of revenue and cost The forecasting techniques that can be used by the company are moving averages and time series analysis. By using moving averages, the company would be successful to smooth the financial data and it will be easy for the company to spot trend. As a result of that, they would be known whether they will be making profit or loss in future. On the other hand, time series analysis can be effective in forecasting the revenue and costs in future by studying the historical data of the company. Therefore, on the basis of forecast, the company can make effective decision for their business. Assessment of funding method of expansion program ABZ Ltd Retained earnings: The Company can finance their expansion program by using their retained earnings. It is seen that in 2014, the company has a retained earnings of 26 million in 2014. Therefore, it can be used and by using it company may not be paying any interest to others. Banks: The financial institution can be other source to gain funds. The company can borrow money as per their requirement. However, the company has to deposit any assets as a security. On the other hand, the company can also go overdraft in order to fund their expansion program. Appropriate budgetary target for the company in next year The budgetary targets that have been selected for each of the products that are PS and TG of NML are variable costs, fixed costs and sales production. Through sales production, the company will know how much production has been made in next year in comparison to last year. Similarly, variable and fixed costs can also be studied to know much costs have incurred for each of the product. Budgetary sales unit for PS is 5000 units while opening inventory of that product is 100 units. Further, closing inventory of PS is 1100 units. Therefore, estimated units to be produced are (5000-100+1100) = 6000 units for PS in the certain period. sales and production budget: master budget The following table shows the master budget of company: PS TG Budgeted Sales 5000 1000 Required Closing Inventory 1100 50 Opening Inventory 100 50 Budgeted Production In Units 6000 1000 Selling Price 95 130 Sales Revenue 570000 130000 Variable Cost 75 85 Total Variable Cost 450000 85000 Total Fixed Cost 35000 15000 Net Income 85000 30000 Table 3: Production and sales budget It can be discussed that, the PS product will generate an income of 85000 with a total cost of 485000. Moreover, it is seen that the selling price is low in comparison to selling price of product TG. Therefore, the income that would be generated from product TG is 30000. However, it can also be noticed that, production unit of TG is less than PS due to that income and cost is less. Comparison of actual expenditure and income to master budget Actual Budgeted Income Variance Sales 4000 5000 1000 Selling Price 96 95 -1 Production 6500 6000 -500 Sales Revenue 624000 570000 -54000 Total Cost 485000 485000 0 Income 139000 85000 -54000 Actual and estimated income of PS Actual Budgeted Income Variance Sales 900 1000 100 Selling Price 125 130 5 Production 950 1000 50 Sales Revenue 118750 130000 11250 Total Cost 100000 100000 0 Income 18750 30000 11250 Actual and estimated income of TG It is seen that company has generated an income of 54000 more as per the prepared budgeted income. Therefore, product PS provided a better value to the company. The company has increased the selling price by 1 unit due to increase in the total cost. As a result, the 130000 income has been generated from the sale of PS. On the other hand, the company has witnessed a loss of 11250 from the sale of TG. The reason is decline in the sales value and production. Moreover, there is no decline in the value of total cost due to that there is significant loss of income. Impact of monitoring budgetary policy As stated by Burger and Hawkesworth (2013), preparing a budget does not make any sense as management needs to control all financial aspects as per the budget produced at the starting of the year. Therefore, monitoring of budget is an exceptional tool in this segment as it provides the management to have control over the various activities of operation. In order to monitor the budget of the company, the management has counted on variance analysis. Both favourable variances and adverse variances are known by the management. Therefore, it helps in identifying possible gap in actual figures and budgeted figures. It is true that systematic observation provides control over the deviation from the estimated figure. Moreover, financial experts are hired for monitoring budget (cipfa.org.uk, 2015). Recommended process for cost reduction From the given problem, NML may apply the process of reduction of holding inventory for lesser days as it will reduce the cost of materials in revenue account. In order to have a better control over the cost, the management can count on Total Quality Management. It will help in increasing the productivity of the company through effective management of costs. Therefore, the company can witness quality production with minimum utilization of cost. Value Analysis can be other recommendation which will be helpful in enhancing the work effectiveness. Through this, the management can identify extra or unnecessary costs that are bear by the company. As a result, the company will receive quality and better production. Activity based costing for company The activity-based costing may be used in NML in evaluating the costing of the company. It provides the means of controlling the cost of every activity mainly for a longer period of production (aat.co.uk, 2015). Through employing ABC method, activities that are related with the production process can be effectively identified. Moreover, each costs can be also be identified such as direct material, direct labour, overhead costs, etc that usually not considered. On the other hand, the cost driver can also be calculated by using ABC method such as machine hours, testing hours, labour cost, etc. Investment appraisal Financial appraisal methods for the projects and justified decision The appraisal method of selecting the project is normally considered as the quantitative approach of assessing the future of investment so that risk associated with the investment becomes low. This is the main strategy applied by the investors in a long-term perspective (Bized.co.uk, 2015). As stated by White et al. (2003), different techniques of assessments are applicable for different objectives of the investment and on project basis. In this context, net present value (NPV) method is applied for evaluating the investment decision between two projects A and B. The NPV estimation of project A provides that investment will yield 207357.24 after five years of investment and at the same for the project B will be 309806.15. Therefore, from the first look any investor will go for the project B, while it is true that the sum invested in this project is more than that of the project A. Thus, another method is necessary where irrespective of sum of the invested sum; only on basis of period of investment the rate of return might be calculated. Thereby, no decision can be made from this technique of appraisal. option A Year cash flow NPV 0 -400000 $207,357.24 1 100000 2 140000 3 180000 4 210000 5 230000 option B Year cash flow NPV 0 -950000 $309,806.15 1 250000 2 300000 3 350000 4 400000 5 450000 Table 5: Investment appraisal using NPV methods Evaluation of two options between A and B option A Year cash flow NPV IRR ARR 0 -400000 $207,357.24 27% outflow 40000 1 100000 return from investment 860000 2 140000 rate of return 20.5 3 180000 4 210000 5 230000 option B Year cash flow NPV IRR ARR 0 -950000 $309,806.15 22% outflow 95000 1 250000 return from investment 1750000 2 300000 rate of return 17.42105 3 350000 4 400000 5 450000 Table 6: Investment appraisal using IRR and ARR method From the above table, it might be observed that project A and B are appraised using the IRR and ARR method where both methods state that investors must go for the project A as the project B yields low rate of return within the period. Project A has tested better result from the both method so decision can be taken for making investment for this project. Further, it is recommended that project A is better looking in terms of assessing techniques still now so company must go for it. Report on appropriateness of strategic investment decision Investment decision making is important approach for any business to enhance their business and acknowledge growth. It is observed that only quantitative method of appraising is considered while the risk associated with the projects are not being assessed. Therefore, without knowing the facts on the qualitative information of the project risk associated cannot be evaluated. Further, the macroeconomic changes and risk associated with economic factors are always a concern for making the investment decision (Askarany et al. 2012). In this context, it is observed that two projects are not of same type therefore, macroeconomic risks associated with those are not same. Further, business risk is a main factor in assessing the projects investment decision so that company might be able to make decision on investment. Strategically it may be said that company might select the project B as it provides the company to invest more money providing more utility of unused investment fund whereas in project A, the total sum of investment is low thereby; it cannot fully utilized the investment fund (companies-house.gov.uk, 2015). Financial analysis Analysis of financial statements As per the variance analysis between two financial year data of the NML group which is certain growth in the revenue turnover of the company is around 3.45% and because of the huge number of dividends proposed by the company retained earnings on the company is showing negative figures in the statement of variance analysis of the company. The company is able is acquired 0.71% net assets increment in the financial year 2014 whereas the reserve of the company is showing growth of the 1.10% in the year 2014 respectively. According to the overall variance analysis of the company the company is showing stable situation which is in growth than the financial year 2013. Financial ratio analysis of NML According to the ratio analysis of the company NML is measured to understand the actual position of the organization in the market. The current ratio of the company is mainly depends on the measurement of the earning capacity of the company which is 1.707 and 1.709 in the year 2014 and 2013. The gross profit margin of the company is also shows the percentage of the 30% and 28.44% in the year 2014 and 2013 and also the net profit margin of the NML group is 22% and 20.87% respectively. The inventory turnover of the company NML is showing ratio of the 2.5 and the 2.9 in the financial year 2014 and 2013. The return on equity ratio which is coming 0.33 and 0.30 which is company gaining from the investment of the owned capital in the companys operational activities. Recommendations on strategic portfolio of NML As per the financial details provided by the company in a particular financial year which is 2013 and 2014; It is showing that company is more focusing in the proposing dividends for the company which is good for the portfolio of the company in front of the investors who are willing to invest their money in the shares of the company because of the higher dividend earnings ratio. The company NML group is not able to retained the earnings for the financial year 2014 but company will be grow in the coming financial because of the huge investment finance from the investors who attracts because of the proposed dividend of the company. Reference lists Books Berry A and Jarvis R Accounting in a Business Context, (2005) (Cengage Learning EMEA) ISBN 1844802515 Drury C Management Accounting for Business, (2009) (Cengage Learning EMEA) ISBN 1408017717 Glynn J, Perrin J, Murphy M and Abraham A (2003) Accounting for Managers, 3rd Edition (Thomson Learning) ISBN 186152904X Harris R and Sollis R (2003) Applied Time Series Modelling and Forecasting (John Wiley and Sons) ISBN 0470844434 White G I, Sondhi A C and Fried D (2003) The Analysis and Use of Financial Statements, 3rd Edition (John Wiley and Sons) ISBN 0471375942 Journals de Jong, M., van Beek, I. and Posthumus, R. (2013). Introducing accountable budgeting.OECD Journal on Budgeting, 12(3), pp.1-34. Lin, W. (2012). Financial performance and customer service: An examination using activity-based costing of 38 international airlines.Journal of Air Transport Management, 19, pp.13-15. Burger, P. and Hawkesworth, I. (2013). Capital budgeting and procurement practices.OECD Journal on Budgeting, 13(1), pp.57-104. Askarany, D., Brierley, J. and Yazdifar, H. (2012). The effect of innovation characteristics on activity-based costing adoption.International Journal of Managerial and Financial Accounting, 4(3), p.291. Websites aat.co.uk, (2015). Available from: https://www.aat.co.uk [Accessed on: 11 Apr. 2015]. Bized.co.uk, (2015).Business studies teaching and education resources: Biz/ed. Available from: https://www.bized.co.uk [Accessed on: 11 Apr. 2015]. cipfa.org.uk, (2015). Available from: https://www.cipfa.org.uk [Accessed on: 11 Apr. 2015]. companies-house.gov.uk, (2015). Available from: https://www.companies-house.gov.uk [Accessed on: 11 Apr. 2015].

Renaissance Man Essay Example For Students

Renaissance Man Essay Florida Institute of Technology Civilizations I Professor Lusty December 15, 2012 Think about the qualities of a Renaissance Man. Choose a man/woman/profession from the late 20th (or early 21st) century even someone still alive today that you think encompasses the spirit of the Renaissance ideal, and give 2 specific areas/ aspects that connect to this ideal. Be as specific as you can. What are the qualities of a renaissance man? His drawings of a fetus in utter, the heart and vascular system, sex organs, and other bone and muscular structures, are some of the first on human record. One of dad Vines last commissioned works was a mechanical lion that could walk and open its chest to reveal a bouquet of lilies. Leonardo dad Vinci was a Florentine artist, one of the great masters of the high renaissance, he was also celebrated as a painter, sculptor, architect, engineer, and scientist. His intense love for knowledge and research was the keynote of both his artistic and scientific endeavors. His innovations in the field of painting influenced the course of Italian art for more than a century after his death, and his scientific studies-particularly in the fields of anatomy, optics, and hydraulics anticipated many of the developments of modern science. Leonardo was born on April 15, 1452, in the small Tuscan town of Vinci, near Florence. He was the son of a wealthy Florence notary and a peasant women. In the mid-asses the dad Vinci family settled in Florence. In Florence Leonardo was given the best education that Florence could offer. He was a fine musician and improviser. In about 1466 he was apprenticed as a garbanzo (studio boy) to Andrea del Veronica, the leading Florentine painter and sculptor of his day. In Veronicas workshop Leonardo was introduced to many activities, from the painting of altarpieces and panel pictures to the creation of large sculptural projects in marble and bronze. In the year 1472 he was entered in the painters guide of Florence, and in 1476 he was still mentioned as Veronicas assistant. In Veronicas Baptism of Christ, the kneeling angel at the left of the painting is by Leonardo dad Vinci. In the year 1478 Leonardo became an independent master. His first large painting the Adoration of the Magi, left unfinished, was ordered in 1481 for the Monastery of San Donation a Scope, Florence. Other works ascribed to his youth are the so-called Bennie Madonna, the portrait Gingers De Bench and the unfinished Saint Jerome. In about 1482 dad Vinci entered the service of the duke of Milan. Having written the duke an astonishing letter in which he stated that he could build portable bridges; that he knew the techniques of constructing bombardments and of making cannons; that he could build ships as well as armored vehicles, catapults, and other war machines; ND that he could execute sculpture in marble, bronze, and clay. He served as principal engineer in the dukes numerous military enterprises and was active as an architect. Evidence indicates that dad Vinci had apprentices and pupils in Milan, for whom he probably wrote the various texts later complied as treatise on painting. The most important of his own painting during the Milan period was the Virgin of the The last supper: From 1495 to 1497 he labored on his masterpiece The Last Supper. Unfortunately, him experimenting of the use of oil on dry plaster was technically unsound, and by he asses its distortion had begun since 1726 attempts to restore have been made but not very successful; a concerted restoration and conservation program was begun in abandon its reversing some of damage however most of the original surface is gone. .u4cac27d67ba0c4c6eb75cb13a82f66af , .u4cac27d67ba0c4c6eb75cb13a82f66af .postImageUrl , .u4cac27d67ba0c4c6eb75cb13a82f66af .centered-text-area { min-height: 80px; position: relative; } .u4cac27d67ba0c4c6eb75cb13a82f66af , .u4cac27d67ba0c4c6eb75cb13a82f66af:hover , .u4cac27d67ba0c4c6eb75cb13a82f66af:visited , .u4cac27d67ba0c4c6eb75cb13a82f66af:active { border:0!important; } .u4cac27d67ba0c4c6eb75cb13a82f66af .clearfix:after { content: ""; display: table; clear: both; } .u4cac27d67ba0c4c6eb75cb13a82f66af { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u4cac27d67ba0c4c6eb75cb13a82f66af:active , .u4cac27d67ba0c4c6eb75cb13a82f66af:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u4cac27d67ba0c4c6eb75cb13a82f66af .centered-text-area { width: 100%; position: relative ; } .u4cac27d67ba0c4c6eb75cb13a82f66af .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u4cac27d67ba0c4c6eb75cb13a82f66af .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u4cac27d67ba0c4c6eb75cb13a82f66af .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u4cac27d67ba0c4c6eb75cb13a82f66af:hover .ctaButton { background-color: #34495E!important; } .u4cac27d67ba0c4c6eb75cb13a82f66af .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u4cac27d67ba0c4c6eb75cb13a82f66af .u4cac27d67ba0c4c6eb75cb13a82f66af-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u4cac27d67ba0c4c6eb75cb13a82f66af:after { content: ""; display: block; clear: both; } READ: Introduction Renaissance Reformation (Ch. 1)The Mona Lisa: Leonardo dad Vines well-known painting, and arguably the most famous painting in the world, the Mona Lisa was a privately commissioned work and was completed sometime between the years 1 505 1507. James black, an art historian at Columbia University, once explained It is the inherent spirituality of the human creature that Leonardo was able to in genuine to the picture that rises the human figure to some kind of majesty. It has been said that the Mona Lisa had Jaundice, that she was a pregnant women that she wasnt a women at all, but a man in drag. Based on accounts from an early biographer said that the Mona Lisa is a picture of Lisa Giaconda, the real-life wife off merchant, buts thats far from certain. For Leonardo dad Vinci however the Mona Lisa is forever a work in progress, as it was his attempt at perfection. The painting was never was never delivered to its commissioner because Leonardo kept it with him until the end of his life. Today the Mona Lisa hangs in the Louvre museum in Paris, France secured behind bullet proof glass and is regarded as a priceless national treasure. Artist: Ever the perfectionist, Leonardo turned to science in the quest to improve his artwork. His study of nature and anatomy emerged in his stunningly realistic paintings, and his dissections of the human body paved the way for remarkably accurate figures. He was the first artist to study the physical proportions of men, women and children and to use these studies to determine the ideal human figure. Unlike many of his contemporaries Michelangelo for example he didnt get aired away and paint ludicrously muscular bodies, which he referred to as bags of nuts. All in all, Leonardo believed that the artist must know not Just the rules of perspective, but all the laws of nature. The eye, he believed, was the perfect instrument for learning these laws, and the artist the perfect person to illustrate them. Inventor: Levers and Gears Leonardo recognized that levers and gears, when applied properly, could accomplish astonishing tasks. Gears were at the heart of nearly all his inventions, from the crane to the helicopter to the automatic turnips. Defense contractor Like any rational human, Leonardo abhorred war he called it beastly madness but since Renaissance Italy was constantly at war he couldnt avoid it. He designed numerous weapons, including missiles, multi-barreled machine guns, grenades, an underwater breathing device, which he refused to reveal, saying that men would likely use it for evil in war. Scientist Roy Anatomy One cannot exaggerate the unpleasantness of Leonardo anatomy studies. Cadavers are already pretty awful, even when refrigerated and pickled in formaldehyde, but Renaissance Italy had no such niceties. Leonardo, in his fervor for knowledge, held nettles creepy vigils with the local corpses, and their annoying tendency to decay forced him to work as quickly as possible. He described it as living through the night hours in the company of quartered and flayed corpses fearful to behold, but as usual his curiosity pushed him ever onward. Tell-The features Alas, even Leonardo fell for some bogus theories. He was fascinated by the study of physiognomy, the science of evaluating a persons character by his or her facial features. Although utter codswallop, physiognomy was all the rage until the beginning of this century, when scientists finally chucked it once and for all.

The Right Approach to Writing a College Essay About Beauty

The Right Approach to Writing a College Essay About BeautyMany people are turning to Ivy College, after being unsuccessful in their regular English college essays about beauty. Ivy College offers students from all over the world, a different perspective in how to write a college essay about beauty.You see, many students are struggling to write an essay that will show their classmates their passion for this topic, since it's an interesting topic, that most people never discuss in school. At other times, they feel like it's very difficult to write an essay about beauty, since it's an intensely personal subject. Thus, they choose to either drop out of school or give up altogether.As you read my first paragraph, you may be thinking to yourself, 'My friend is failing her essay on beauty. Why don't you help her?' Indeed, here are a few tips that can help you.First, determine which writing styles are best for your essay. Some people get intimidated when it comes to essay writing. So when I say 'writing styles', I mean how you choose to go about outlining your essay.To start with, if you prefer to outline to a written book, then do it this way. Start with a picture. Maybe you remember that beachside resort where you were so beautiful you cried tears of laughter. That's a good place to start.After that, write the 'whole' of your essay, which is the essay you actually want to finish writing. I strongly recommend that you write the essay in a specific order, so you can ensure that the important parts are mentioned first, and the less important parts will come later.Since this is a topic that interests you, decide what subject matter you want to cover. I know this is controversial, but in order to make sure that you have a solid topic, you want to narrow down the topic. Just ask yourself, 'What do I want to talk about?If you feel like you cannot write a college essay about beauty, I urge you to give Ivy College, a different perspective. Give Ivy College your best shot, and your essay will be a success.

Co-Operative Banks in India Essay Example

Co-Operative Banks in India Essay A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts†¦). Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. All the cooperative banks share common features : †¢ Customer-owned entities: In a co-operative bank, the needs of the customers eet the needs of the owners, as co-operative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximise profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. We will write a custom essay sample on Co-Operative Banks in India specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Co-Operative Banks in India specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Co-Operative Banks in India specifically for you FOR ONLY $16.38 $13.9/page Hire Writer †¢ Democratic member control: Co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of â€Å"one person, one vote†. Profit allocation: In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operative’s products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member. HISTORY The Bank was formed in 1872 as the Loan and Deposit Department of Manchesters Co-operative Wholesale Society, becoming the CWS Bank four years later. However, the bank did not become a registered company until 1971. In 1975, the bank became the first new member of the Committee of London Clearing Banks for 40 years, and thus able to issue its own cheques. Since 1974 the Co-operative Bank has consistently offered free banking for personal customers who remain in credit. It was also the first Clearing Bank to offer an interest bearing cheque account called Cheque Save, in 1982. In 1991 the Bank shook the credit card market when it introduced a guaranteed free for life Gold Visa card. The Co-operative banks in INDIA have a history of almost 100 years. The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfil, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Establishment of Cooperative Banks in India INTRODUCTION Co-operative banks Co-operative movement is quite well established in India. The first legislation on co-operation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for co-operative banking viz. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Co-operative Banks at the district level and State Co-operative Banks at state level or Apex Level. The first urban co-operative bank in India was formed nearly 100 years back in Baroda. The co-operative banks arrived in India in the beginning of 20th Century as an official effort to create a new type of institution based on the principles of co-operative organisation and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, to provide timely and adequate short-term and long-term institutional credit at reasonable rates of interest. In the formative stage Co-operative Banks were Urban Co-operative Societies run on community basis and their lending activities were restricted to meeting the credit requirements of their members. The concept of Urban Co-operative Bank was first spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank. Provisions of Section 5 (CCV) of Banking Regulation Act, 1949 (as applicable to Co-operative Societies) defined an Urban Co-operative Bank as a Primary Co-operative Bank other than a Primary Co-operative Society was made applicable in 1966. Cooperative banking  is retail and commercial banking organized on a  cooperative  basis. Cooperative  banking institutions  take deposits and lend money in most parts of the world. Cooperative banking (for the purposes of this article), includes retail banking, as carried out by credit unions, mutual savings and loan associations, building societies and cooperatives, as well as commercial banking services provided by mutual organizations (such as cooperative federations) to cooperative businesses. The Co-operative banks has a history of almost 100 years. The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfil, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary co-operative banks. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. long with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance, personal finance, etc. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. According to NAFCUB the total deposits lendings of Co-operative Banks is much more than Old Private Sector Banks also the New Private Sector Banks. This exponential growth of Co-operative Banks is attributed mainly to their much better local reach, personal interaction with customers, their ability to catch the nerve of the local clientele. Though registered under the Co-operative Societies Act of the Respective States (where formed originally) the banking related activities of the co-operative banks are also regulated by the Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Definition of a cooperative bank (Source  : ICBA, International Cooperative Banks Association) A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts†¦). Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. Even if their organizational rules can vary according to their respective national legislations, co-operative banks share common features: †¢ Customer-owned entities  : in a co-operative bank, the needs of the customers meet the needs of the owners, as co-operative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximise profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. †¢ Democratic member control  : co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of â€Å"one person, one vote†. Profit allocation  : in a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operative’s produc ts and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member. Co-operative banks are deeply rooted inside local areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other banks are less present – SMEs, farmers in rural areas, middle or low income households in urban areas co-operative banks reduce banking exclusion and foster the economic ability of millions of people. They play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. Their specific form of enterprise, relying on the above-mentioned principles of organization, has proven successful both in developed and developing countries. Larger institutions are often called  cooperative banks. Some of these banks are tightly integrated federations of credit unions, though those member credit unions may not subscribe to all nine of the strict principles of the  World Council of Credit Unions  (WOCCU). Like credit unions, cooperative banks are owned by their customers and follow the  cooperative principle  of one person, one vote. Unlike credit unions, however, cooperative banks are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members, and some participate in the wholesale markets for bonds, money and even equities. [2]Many cooperative banks are traded on public  stock markets, with the result that they are partly owned by non-members. Member control is diluted by these outside stakes, so they may be regarded as semi-cooperative. Cooperative banking systems are also usually more integrated than credit union systems. Local branches of cooperative banks elect their own boards of directors and manage their own operations, but most strategic decisions require approval from a central office. Credit unions usually retain strategic decision-making at a local level, though they share back-office functions, such as access to the global payments system, by federating. Some cooperative banks are criticized for dilution of cooperative principles. Principles 2-4 of the  Statement on the Co-operative Identity  can be interpreted to require that members must control both the governance systems and capital of their cooperatives. A cooperative bank that raises capital on public stock markets creates a second class of shareholders who compete with the members for control. In some circumstances, the members may lose control. This effectively means that the bank ceases to be a cooperative. Accepting deposits from non-members may also lead to a dilution of member control. MAIN FUNCTIONS OF COOPERATIVE BANKS 1. Co-operative Banks are organised and managed on the principal of co-operation, self-help, and mutual help. They function with the rule of one member, one vote function on no profit, no loss basis. Co-operative banks, as a principle, do not pursue the goal of profit maximisation. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities. Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products. However, co-operative banks now provide housing loans also. UCBs provide working capital loans and term loan as well. 2. Co-operative bank do banking business mainly in the agriculture and rural sector. However, UCBs, SCBs, and CCBs operate in semi urban, urban, and metropolitan areas also. The urban and non-agricultural business of these banks has grown over the years. The co-operative banks demonstrate a shift from rural to urban, while the commercial banks, from urban to rural. Co-operative Banks belong to the money market as well as to the capital market. Primary agricultural credit societies provide short term and medium term loans. 3. Cooperative banks in India finance rural areas under:  ·Farming  ·Cattle  ·Milk  ·Hatchery  ·Personal finance 4. Cooperative banks in India finance urban areas under:  ·Self-employment  ·Industries  ·Small scale units  ·Home finance  ·Consumer finance  ·Personal finance Co-operative Banks Types: There are two types of co-operative banks in INDIA. 1. The first is the short term lending oriented Co-operative Banks. In this category there are again three sub categories of banks which are the State Co-operative banks, District Co-operative banks and the Primary Agricultural Co-operative societies. 2. The second is the long term lending oriented Co-operative banks. In this second category there are land developments banks which are at three levels. First is the state level, the second is district level, and the third is the village level. Again the Co-operative banking structure in India is divided into five main categories and these categories are: 1. Primary Urban Co-operative Banks. . Primary Agricultural Credit Societies. 3. District Central Co-operative Banks. 4. State Co-operative Banks. 5. Land Development Banks. It is very much clear that co-operative banks have very much importance in national development. Without the help of co-operative banks, millions of people in INDIA would be lacking the much needed financial support. CLASSIFICATION OF COOPERATIVE BANKS Some co-operative banks are s cheduled banks, while others are non-scheduled banks. For instance, SCBs and some UCBs are scheduled banks but other co-operative banks are non-scheduled banks. At present, 28 SCBs and 11 UCBs with Demand and Time Liabilities over Rs 50 crore each included in the Second Schedule of the Reserve Bank of India Act. Co-operative Banks are subject to CRR and liquidity requirements as other scheduled and non-scheduled banks are. However, their requirements are less than commercial banks. |Sr. No. |Category of bank |Minimum SLR holding in Government and other approved securities as percentage of Net Demand | | | |and Time Liabilities (NDTL) | |1. Scheduled banks |25% | |2. |Non-Scheduled banks | | | |a) with NDTL of Rs. 25 crore | | | |above   | | | |b) with NDTL of less than Rs. 5 |15% | | |crore | | | | | | | | |10% | Recent Developments Over the years, primary (urban) cooperative banks have registered a significant growth in number, size and volume of business handled.

Example of Descriptive Writing Essay Combining Two Movies in One

Example of Descriptive Writing Essay Combining Two Movies in OneThe example of descriptive writing essay combining two movies in one is to use the two films to suggest a common theme, a theme that could be explored by the student. The idea behind this type of essay is to find a way to combine the two films to create an overarching theme.The first step in the combination is to choose a film that would have stood out among the others. A film with some unique and meaningful themes will show up more in the essay, but if you are unsure what a common theme can be for the film, you can search the movie listings on a search engine for a wider selection. Of course, choosing a different film can also lead to more ideas, so you may want to try both.To start the essay, you should include a brief summary of each film, but don't give all the information. It is often better to provide only enough information for your reader to understand the film and then leave it up to your readers to figure out t he rest. You don't want to overwhelm them with too much information.Next, consider how the films are related. Could the students pick out a shared theme between the two films and draw their own conclusions?Next, consider how each film is structured and composed. Again, your students will often have the most success if they are able to do this based on each film's structure. You can ask them to spend some time thinking about which movie is more likely to be discussed and how it differs from the other.As a last step, you should explore common themes between the two films. Identify a popular, yet hidden part of each film, and go there. This may seem like a distant memory, but you should remember that often one film can tell several stories.The easiest way to achieve this common theme is to use character. Most people are able to identify a character from one film by simply watching the other. Tell a brief story about the character in each film, then connect these stories to tell the ove rall story.Once you have taken these basic steps, the work becomes much easier. Try an example of descriptive writing essay combining two movies in one, and see what you learn. The next time you're preparing a paper, consider using this approach.

The Ways That Fear and Anger Run in the Cather Family

The Ways That Fear and Anger Run in the Cather FamilyOne of the topics I will cover in my Crete in the Rye Essay topics will be the way that anger and fear run in the Cather family. We all know that Robert Cather was a very angry man but did you know that he also had some very troubling fears?For instance, one of his biggest fears was that he would become crazy and that his children would soon follow suit. He knew that his children might, one day, try to commit suicide or hurt themselves, but he did not know when it would occur.So Robert Cather was very afraid that they would do these things, but he did not understand that his children were terrified of him. In fact, Robert Cather himself believed that his children wanted to be around him, not to leave him. When it came to the writing of the essay topic, Cather realized that the longer the fear and anger went on the more difficult it would be to write.He had just about given up hope of ever getting the essay written, so when his fath er called him and said, 'Father, Robert wants to talk to you about this essay,' he realized that he could not give up. His father said, 'Robert, Robert wants to tell you something.' Robert agreed and told his father that he was afraid that he might kill his children.His father responded by telling Robert that he would never kill his children. This made Robert Cather very upset and he quickly hung up the phone. Robert Cather then spent the rest of the day trying to figure out how he was going to get rid of his fear and anger.This experience led Robert Cather to write the essay 'On Unquiet Imagination,' which included the following sentence: 'So my fear and my anger put me in a lonely state of mind. But I am not alone. There is the least moment of peace. There is the least shade of comfort. And in that moment, I would rather be alone than share that part of me with anybody else.'In this essay, Cather describes the feeling of being in a place where he could take all of his stress and f ind peace with himself. This is exactly what I experienced in my Crete in the Rye essay topics. We all know that the hardest part is getting past the fears and insecurities, but once those are gone, you can move on to getting your fears under control and then moving on.The worst part of having article topics in your hand is that the longer the time it takes to write, the harder it is to actually finish. Make sure that your essay topics are shorter because there is only so much that you can write before you can't.

John Muir Would Have Approved Of Some Environmental Science Essay Topics

John Muir Would Have Approved Of Some Environmental Science Essay TopicsIn general, John Muir would have been quite pleased with his recent experience with Environmental Science essay topics, as well as the essay topics that come from university writing programs. In particular, he would have been happy about the choice of the essay topics that have been provided by a university writing program.Many universities have created innovative essay topics that are appropriate for environmental science courses. These topics include 'The Spirit of American Industry.' It can be interesting to read what John Muir would have written if he had written this topic in his essay topics for his classes. His points about the future of the United States are quite relevant and interesting.John Muir would have also liked to see the most recent topics, 'Emerging Technologies and Science of Natural Resources,' and 'Nature and Society.' His main point would have been that the two topics would have challenged students in their choices of careers and also about our planet's future. He would have emphasized that humans should consider protecting our natural resources before they are depleted, especially by developing alternative methods to extracting energy.John Muir would have also loved 'The Ecological Processes' essay topic, which he would have liked to see that was available as an elective at the University of Montana. The topic discusses the ecological process and how we make our living in today's world.Another nice essay topic for environmental science would be 'Ecology of a Citizen.' This essay explores the relationship between science and society and how it affects our environment.For John Muir, environmental science and engineering are important subject areas that demand a lot of attention. It is important to see all these essays because they can add a very interesting and useful educational experience for students who choose to enter college or university and are considering thes e subjects.John Muir would have appreciated that students will be exposed to diverse cultural views about the world, as well as the environment. It is very important for students to learn about other points of view regarding various topics. This can make them more knowledgeable about various issues that affect our world.