American Nightmare Essay

Let’s face it, the economy is in a horrible condition and it can be seen all across the nation. Education, employment, and balancing life is an everyday struggle for most Americans during these hard time. Citizens are stuck in their social class and can not move up, instead they might even fall below their current standard of living. Immigrants are still migrating to this once marvelous country, but their chances of success are quite slim. Job availability is steadily decreasing, and people are not making enough income to live a decent life. The truth is, the American dream is dead. The dream everyone of this nation hoped to achieved has ultimately become a nightmare. The main reasons why the dream is dead is because of; the deteriorating economy, no governmental support, and lack of individualism. A dollar today is no longer what it used to be in the early years of America. Everyone needs money, there is no doubt about that. A person without money is a typically seen as worthless and can not afford to live a decent life. The problem is, all the necessities we need in life are becoming expensive. It has become very difficult for many to citizens to earn enough to live their life. On a personal basis, my family was forced to put our house on foreclosure. The cost of maintaining a house has become quite expensive. Thousands of people are losing their homes and forced to move into less costly homes. This is seen on the internet, T. V, and even in our neighborhoods. Another example of the economy breaking down is our nation’s gas prices. Gas prices are steadily rising, and it has become difficult for many Americans to receive that full tank of gas. So it begs the question, where does society get the money to pay these things off? In other words, a majority of the nation can not pay off their dues. There are less jobs available to the public which equals less money around. Most citizens are forced to live their lives on a depressing minimal wage budget. America should not be in a situation in this, the government should help stabilize the economy. The government; which is composed of officials, law makers, and congress who created this once prosperous nation. However, where are they now? The government seems to be worried about their own campaigns are affairs outside of the US. They do not seem to have any interest in fixing this nation’s problems and help citizens achieve their dreams and goals. Most especially in broken down ghetto neighborhoods , where governmental help is needed the most. The nation must be equally supported in all cities, to result in a stable government system. An excerpt from â€Å"When Work Disappears† by William Julius Wilson describes the changed environment of a once great and prosperous city. When I walked down 63rd street when I was younger, everything you wanted was there. But know, coming back as an adult with my child, those resources are just gone, completely†¦ And housing, everybody has moved, there are vacant lots everywhere† (199). If the government took time to reconstruct the foundations of cities like these, the motivation to follow the dream would live on. The government needs to focus on current affairs and problems in the nation, then focus on other tribulations in different countries. Environments like the one describe, demoralizes the citizens making them ultimately give up hope. However, within these depressing times the American dream applies to one person, yourself. The American dream is created by what a person’s belief, goals, and dreams are. But, can a person achieve their dream if they have no sense of freedom or individualism in this nation? There are numerous restrictions on the common man, for us to truly express or goals and aspirations. The people of this nation can not pursue anything, if they are â€Å"chained† down by society. This statement is clearly evident is a quote in an article by an anonymous writer, Corpus Chrsti Caller Times. The first part of the American Dream is a country where any of us is free to think, believe, say and do anything we want (within some limits) without worrying about being arrested and jailed by government agents†(Corpus). The government needs to be more lenient if a person’s free speech and ideals. If the government always stops us from reaching our goals, we will never be able to. There must be a sense of balance between the control and freedom on each individual in this nation. The American dream once thought to be attainable during the early years of American’s foundation, is no longer or very difficult to attain in these day and age. These problems are Due to the fact of the poor economy, unsupported government, and lack of individuality. All these problems, and much more within the system of the United States destroy the very ideals of the American Dream. The reality of attaining the so called â€Å"American Dream† has become difficult. To most Americans the will to live life anymore has turned into a nightmare. The constant struggles and tribulations thousands of Americans face in this current era. America can relive the dream, only if the heart of American changes.

Crouching Orwell, Hidden Diddion (a Contrast Between the Authors)

Orwell and Didion, two distinguished authors that each had their own reasons for writing. Both Orwell and Didion each took time breaking down parts of their lives to give examples of the nature of their writing and how it developed through their lives. Some have taken it upon themselves to classify Orwell and Didion as similar. While it is true that they have some slight similarities, that's only to be expected of two individuals in the same profession. When you start to dig through their words it soon becomes overwhelming on just how different they are as both writers, authors, and people. Orwell had a lonely childhood. He however had a notion that he would be a writer. He even described it like it was an inescapable destiny. â€Å"I knew when I grew up I should be a writer†¦ I tried to abandon this idea, but I did so with the consciousness that I was outraging my true nature†¦ †. (90) This forever looming moment of self discovery stayed with him through his childhood through young adulthood where he later tried to rebel against his ever apparent nature. Orwell sensed that he had a power over words, learning to harness his gift as he toiled through the process of learning exactly what kind of writer he wanted to be. Orwell soon was ruling the literary power that he then strengthened with exercising his imagination. (91) Didion didn't seem to do these types of mental exercises until later. Giving Orwell a distinct advantage over the the world that she was finding herself breaking into. She didn't have Orwell's uncanny insight into what she was going to be. In fact from what she mentioned, she didn't have any insight into her own mind much less her driving ambition. Just the opposite of Orwell, instead of her controlling her imagination, Didion was experiencing the sensation of words and simple images having a power over her. (225) As they defined their styles, the differences only increased. Especially as Orwell gained his new political purpose infused writing style. â€Å"Using the word ‘political' in the widest possible sense. Desire to push the world in a certain direction. † This new element of his writing drew a iron line in the sand between himself and Didion. This is one of the most distinct contrasts in their writing. Didion's writing was for herself, about herself, to cope with herself. It was her passion and her sickness. She was the primary benefactor of her writings, It was a way to be able to sort things out in her head. (225) Orwell wrote for entirely different reasons. He didn't write for himself through artistic pursuit alone. He instead started to imprint his writings with purpose and meaning, to get his own ideas into the heads of others. Orwell wanted to change their minds on subjects he felt passionate about. This was the core of his writing, to write for others; to influence others. He wanted to make an impact on their thoughts and their views; To change them and subsequently change the world around him. Didion in her essay never referenced Orwell besides an opening statement about ‘stealing' the title of said essay from him. She didn't point out any similarities between them at all, how could she? They had nothing in common except for both of them being writers. Orwell's reasons for writing is driven, fueled and dragged with two primary concepts that he listed: Political Purpose and Aesthetic enthusiasm. Orwell's dream and goal is to make political writing into an art. Didion's reasons were self discovery to formulate her thoughts and to get out the images she see's in her head. This was not a want for her, it is a need. She needs her writing to figure out her own fears, wants, likes, dislikes She sights the reason behind this was not having access to her own mind, as if writing was a key to open the door. For if she had a clear mental pathway â€Å"There would have been no reason to write. † (225) In conclusion Orwell and Didion have been different from the beginning to the end. They have different approaches to their writing, different reasons and different outcomes. I feel almost as if they are opposites rather then reflections of one another. As my eyes scan the essays both of them have written I do not find myself thinking back to the others writing. I'm lost in each picture that they paint of themselves and the world. One is in red, the other in blue, they are both colors, but are nothing alike. They sound different, feel different, portray themselves and their basis-es and reasons differently. They are in one word: different.

Characteristics of a Business Partnership

A partnership is a voluntary association between the partners that is based on a contract. The life of a partnership is limited by agreement or by the death of incapacity of a partner. Normally, each partner can act as an agent of the others partners and commit the partnership to any contract within the apparent scope of its business. All partners in a general partnership are personally liable for all the debts of the partnership. Limited partnerships include one or more general partners plus one or more (limited) partners whose liabilities are limited to the amounts of their investments in the partnership. The risk of becoming a partner results in part from the fact that partnership characteristics include mutual agency and unlimited liability. The initial investment of partnership assets is recorded by debiting the assets contributed at the fair market value and crediting the partners’ capital accounts. A partnership’s profits or losses are allocated to the partners according to the terms of the partnership agreement. The agreement may specify that each partner will receive a given fraction, or that the allocation of profits and losses will reflect salary allowances and/or interest allowances. When salary/ or interest allowances are granted, the residual profit or loss usually is allocated equally or on a stated fractional basis.When a new partner buys a partnership interest directly from one or more of the existing partners, the amount of cash paid from one partner to another does not affect the total recorded equity of the partnership. The recorded equity of the selling partner (s) is simply transferred to the capital account of the new partner. Alternatively, a new partner may purchase an equity interest in the partnership by investing additional asset in the partnership. When this occurs, part of the new partner’s investment may be credited as a bonus to the capital accounts of the existing partners. Also, to gain the participation of the new partner, the existing partners may give the new partner a bonus whereby portions of the existing partner’s capital balances are transferred to the new partner’s capital account.When a partnership is liquidated, losses and gains from selling the partnership assets are allocated to the partners according to the partnership profit – and – loss – sharing ratio. If a partner’s capital account has a deficit balance that the partner cannot pay, the others partners must share the deficit in their relative profit and loss sharing ratio.

Karl Marx Aruments Essay Example | Topics and Well Written Essays - 250 words

Karl Marx Aruments - Essay Example Whereas the Capitalists believed on the private ownership of means of production, Communisms was for the public ownership of means of production. Secondly, these philosophers were against alienated labor and job specialization, which they viewed as betrayal to multiple human potential. Thirdly, they were against exploitation of workers, brought by capitalism. Here workers would be exploited in terms of payment. They claimed that Capitalism was primarily for making money rather than the common good for all. For instance, among the few rich, money would determine their relationship even in the institutions of marriage. Job instability is another factor that these scholars viewed as a brought by the industrial age. Here most workers would be rendered jobless as machines take up most jobs (Riggins 1). Some of these arguments are still seen to be relevant to date. For instance, in some of the most industrialized nations, machines tend to do most jobs, which human beings would have done. For example, in Britain, cotton gene replaced human labor. Secondly, the idea of job specialization has transformed most human beings to a machine like creature, preventing them of being dynamic and innovative (Caldwell 3). In conclusion, the ideologies of Marx and Engels can help in building economy that brings better relationship with nature and society. Moreover, there is no country in the world to date which practice communism or capitalism to the letter. In one ay or another, changes have been realized in countries that were first viewed as extremists. For instance, communist China now gives her citizens opportunity to keep some of their earnings. The same appears to have been adopted and adapted in USA that currently has social security systems and postal services owned by

Early Childhood Education Essay Example | Topics and Well Written Essays - 750 words

Early Childhood Education - Essay Example The development of the senses of the child in its formative years, which is between three and six years of age, precedes that of the higher intellectual powers.   Montessori believes that their sensorial curriculum can aid the development of the senses of the child in its early years.   The aim is not to sharpen the senses but rather to refine the child’s senses so that he can differentiate even the slightest differences in order to truly observe and appreciate the world around him.   The training will help him understand what he sees, hears touches, tastes and smells.    Montessori further breaks down the five basic senses into nine isolated senses namely: visual/seeing, auditory/hearing, olfactory/smelling, tactile/touch, and gustatory/taste, chromatic/color, baric/weight, thermic/temperature, and stereognostic/tactile-muscular.   Several sensorial materials and activities are used in the Montessori method.   One of them is the Color Boxes which is directed towar d the visual and chromatic sense.   Children learn about the colors of the earth and their visual sense is refined.   Color Box 1 teaches the three primary colors: red, blue and yellow. The initial lesson is merely matching the three sets of col s, to demonstrate an ability to distinguish between the three.   Color Box 2 is similar to Color Box 1, except that it includes eleven colors: gray, black, white, pink, brown, red, orange, yellow, green, blue, and purple.

Total Rewards Programs Research Paper Example | Topics and Well Written Essays - 2000 words

Total Rewards Programs - Research Paper Example According to the paper in spite of the age old concept, worth noting is that total rewards is especially relevant in the present-day work environment, whereby globalization has made it possible for employees to work in diverse environments. The following total rewards system proposal seeks to focus on the latest available information with regard to creating, organizing as well as effectively managing a total rewards program. The program is targeted for the ABC Company, a service-based organization that employs more than 20,000 located in 17 different countries. There are also over 2,000 management level employees who speak in diverse languages. In consideration of the multiple regulatory environments, a total rewards systems is proposed. Firstly, a brief overview of the company requirements for a total rewards system is provided. A total rewards strategy has then been formulated and the various advantages of the proposed strategy explained. Further, the key communication components o f the system are established. Lastly, but certainly not least, a strategy has been examined for devising a competitive pay structure. The total reward program is holistic and does not rely on one or two reward systems operating in isolation. Further, there is good account of every manner in which people can obtain satisfaction and are rewarded through their work. The objective of total rewards is to maximize the combined impact of a wide range of reward initiatives on motivation, organizational commitment and job engagement. This concept aims to blend the financial as well as non-financial reward elements into a cohesive whole. As put by O’Neal   Ã¢â‚¬Å"total reward embraces everything that employees value in the employment relationship.† WorldatWork also offer an equally wide definition of total reward, stating that â€Å"all of employer’s available tools that may be used to attract, retain, motivate and satisfy employees.† Overview of company requireme nts for a total rewards system From this paper it is clear that there is an increasing need for corporations to come up with reward systems that motivate employees to work harder and more effectively. These systems usually teach associates the importance of being productive and efficient, as well as their inherent value in companies. However, considering the pressures associated with incentives or performance, or even ineffective implementation procedures, in some situations, these systems can encourage unethical or even unwanted behaviors . Therefore, to attract and retain the best workers, corporations need to have an appropriate rewards system that will always reward and encourage workers to always remain focused on producing the best quality services in an efficient manner, thereby meeting the needs of customers. This corporation needs a reward system that will be linked with goal-setting, competency measures and employee development. A reward system will help the corporation in moving toward a better alignment between company strategies and values and performance management. This will help in decentralizing the decision-making down company hierarchy to help in empowering every manager located in different parts of the world.  

OSHA Legal Aspects of Safety and Health Essay Example | Topics and Well Written Essays - 250 words - 1

OSHA Legal Aspects of Safety and Health - Essay Example OSHA is also allowed to issue multiple penalties incase the consideration is on per instance basis (Ehlke, 2005). In this case, the standard violated needs to have clearly stipulated that compliance is per individual employee. In this instance, record keeping and lead protection standards stipulate that all recordable injuries should be entered on the log and an employee should be removed from work after being exposed. Also in case an employer has persistent high rates of injuries and/or fatalities, long history of violations, intentional ignorance to standards and lastly, bad faith multiple citations can be issued (Ehlke, 2005). These are good examples where multiple violations can be cited by OSHA under the egregious violations policy. It is important to note here that OSHA has the discretion to group violations and use this as a basis to propose penalties with multiple violations attracting single or multiplied penalties. References Ehlke, B. M. (2005). OSHA targets for 2005. Retr ieved 25 Jan. 2011 from, http://library.findlaw.com/2004/Aug/1/231145.html

Post Washington Consensus Consensus Essay Example | Topics and Well Written Essays - 1500 words

Post Washington Consensus Consensus - Essay Example primary health care, primary education, and infrastructure ;tax reform (to lower marginal rates and broaden the tax base);Interest rate liberalization ;a competitive exchange rate ;trade liberalization ;liberalization of inflows of foreign direct investment ;privatization ;deregulation (to abolish barriers to entry and exit) and secure property rights. This privatization agenda in pursuit of globalization has come under criticism as (1) says," Some of the most vociferous of today's critics of what they call the Washington Consensus, most prominently Joe Stiglitz... do not object so much to the agenda laid out above as to the neoliberalism that they interpret the term as implying. I of course never intended my term to imply policies like capital account liberalization...monetarism, supply-side economics, or a minimal state (getting the state out of welfare provision and income redistribution), which I think of as the quintessentially neoliberal ideas". In development literature it is examined and accepted that The Washington consensus emerged out of a kind of counter reaction in development economics (3) to what has been termed as rather operationally successful neoliberal revolution against Keynesianism prescriptions of the 1970s.The Washington Consensus, materialized in large and specially built Structural Adjustment Programmes (SAPs) suggested for a substantial portion of the developing countries in the ensuing years of 1980s and 1990s.It was the outcomes of these SAPs that were not along expected lines and which resulted in external criticism of The Washington Consensus itself. Joseph Stiglitz a World Bank Economist was the most prominent insider to offer criticism of the neoliberalism inherent in The Washington Consensus and the body of criticism is now termed as post Washington consensus consensus (4) in the sense that it agrees on drawbacks and weak points of the consensus. This paper examines the critical body of arguments posed in this new consensus. 2.Post Washington Consensus Consensus (5) exemplify in detail the various outcomes of the SAPs, based on The Washington Consensus, which not fell short of mark in their prime objective of achieving economic growth through market deregulation but also created other weak spots.Amin states that SAPs resulted in ," a sharp increase in unemployment, a fall in the remuneration of work, an increase in food dependency, a grave deterioration of the environment, a deterioration in healthcare systems, a fall in admissions to educational institutions, a decline in the productive capacity of many nations, the sabotage of democratic systems, and the continued growth of external debt. "This made Stiglitz look out for an intellectual alternative t economic growth model. An alternative which was not based on sole emphasis on deregulations of all categories of markets to attain economic growth targets. Stiglitz writes about 'a new paradigm for economic development' (6).This idea of anew consensus arrived from Stiglitz when global development financial institutions had undergone a major policy shift after having witnessed the Asian crisis and analyzed its reasons that were traced to deregulated

How to Develop Self-Confidence Essay Example | Topics and Well Written Essays - 500 words

How to Develop Self-Confidence - Essay Example It is rightly said that self confidence is all in your mind. The first step that should be taken for the development of self confidence is to realize one’s own self. First of all make a list of qualities present in the personality and read it daily until your mind starts believing on such qualities in the character. (Robert Anthony - Self-Help, 2005) Another important way to develop self confidence is self talk. It is very important in the way of success to express all your thoughts in the figure of words. For such ability one has to eliminate self doubt from the personality. Once this quality develops in the character it will become helpful in every race of life. Self praising is also an important activity for the development of confidence. One should praise himself that he is gorgeous, talented and possesses all the qualities that one should have to be a successful person. This appreciation will of course help him in reducing hesitation from his behavior. In contrast, never criticize one’s own self. It plays a great role in suppressing the self-belief. It may demodulate the mind and develop feeling of hopelessness in one’s character. Self confidence may also generate by the elimination of bad habits from the personality and replace them by positive activities. If an individual gets command on his behavior he will definitely become confident in his all dealings of routine life (Coon et al 2009). One more important thing that should be mentioned here is that there is no need to hide your progress in any race of life. Let the people know your efficacy towards your objective. To hide anything would always irritate the mind. It keeps suppressing the confidence. Once the confidence has developed avoid the company of people who diminish your self confidence with their negative comments and opinions. Continuous

Got Milk Essay Example for Free

Got Milk Essay Got Milk? Well, Austin Powers, Tracy McGrady, Serena Williams, Britney Spears, and even Elvis all do. But, do they know what they are selling in this Got Milk? Advertisements? The Got Milk? campaign was based on a milk deprivation strategy that reminded consumers how inconvenient it was to be without milk. The advertisement made milk a very popular drink because of its attractiveness not because of the nutrients and health issues. It has been believed by many that milk is needed to have a strong and healthy body, when actually milk can be extremely harmful and the nutrients needed for a good body can be found in many other sources. Statistics show that milk consumption is on the rise in the United States since the Got Milk? campaign was launched. In 1993, 58. 1 billion pounds of milk was consumed. It had risen to 59. 5 billion pounds by 2002, an increase of 1. 4 billion pounds (ERS, Animal Products Branch). Another factor causing the milk industry to grow is dairy farmers. They risk the collapse of their industry if the population does not consume enough milk. So, of course, the farmers are pushing us to drink not just one glass, but two and three glasses of milk a day. Their main priority is to make money by getting us to drink milk as much as possible, not to inform us that milk may not be all that healthy because we are not aware of the risks, we tip our glasses and drink up. Milk is not as nutritionally essential as it is portrayed, but rather it is harmful to our bodies. Heart disease is Americas number-one killer. The main causes of this disease have been believed to be such things as smoking, stress, and even lack of companionship. However, according to an article in Earth Island Journal, milk consumption is probably the number one cause of heart disease. By the time the average American turns fifty-two, he or she will have consumed in milk and dairy products the same amount of cholesterol contained in one million slices of bacon ( ?  °Milk: The Deadly Poison?  ±). Dairy products are the most instant source of saturated fat. Saturated fat increases cholesterol production in the liver. This leads to the formation of fatty deposits in the arteries which increase one s risk of heart attack and stroke (?  °The Case against Dairy?  ±). The high levels of saturated fat and cholesterol found in milk intensify your chances of bypass surgery, which would put a fifty-thousand dollar dent in your wallet. Another problem that is not well known, are the harsh chemicals, antibiotics and hormones that may be found in milk and dairy products. Most of America  dairy cows have leukemia virus and after they graze in fields with pesticides their milk contains a mixture of lethal chemicals (?  °Milk: The Deadly Poison?  ±). Equally as important are the hormones and antibiotics dairy farmers inject into their cows. One hormone, known as recombinant bovine growth hormone, or rBGH, is injected into many cows to increase milk production. There is evidence that rBGH assists the growth of tumors in lab animals and it stimulates another hormone closely connected with breast cancer (?  °The Case against Dairy?  ±). Also, farmers are permitted to give antibiotics to their cows to fight various diseases. Milk and dairy products contain traces of the antibiotic that are passed on to us. Exposure to such toxins breed strains of bacteria that are immune to even the strongest medicine (?  °The Case against Dairy?  ±). Most of us do not realize the number of people that are lactose intolerant. Worldwide estimates suggest that two-thirds of the population have trouble digesting milk because of lactose intolerance. According to Teacher Magazine, minorities may have difficulty digesting a sugar in milk known as lactose. An estimated ninety percent of Asian Americans, seventy percent of African Americans and Native Americans, fifty percent of Hispanics, and fifteen percent of Caucasians are lactose intolerant. Hand in hand with lactose intolerance are the proteins in milk that can lead to allergies. Dr. Attwood, an author of many well known parenting books, says ?  °. . . there are more than twenty-five proteins in milk that can lead to allergies. Approximately seven out of ten patients I see have allergies with symptoms ranging from recurrent ear infection, asthma, and various upper respiratory infections. In most cases the patient improves when taken off dairy products.?  ± (Attwood-2) Milk s main nutrient is calcium, but there are many other foods that can replace milk in order to attain that calcium. According to an article in Harvard Health Journal, many vegetables are good sources of calcium. A cup of frozen spinach actually contains just as much calcium as a glass of milk. There is also calcium fortification in such things as orange juice and even waffles. Fruits, whole grains, soy products, and nuts also are great sources of calcium. They supply it in a form that is easier for the body to absorb and use. If the foods mentioned above do not satisfy your tastes, calcium supplements are also available. They are free of saturated fat and added calories you would get from milk and dairy products. There is also a great variety of milks that each contain similar nutrients, yet vary in other aspects. These alternatives include whole milk, 1%, 2%, fat free, evaporated, flavored, Acidophilus Milk, UHT Milk, organic, lactaid, lacteeze, buttermilk, and homogenized. When dealing with children, people say that drinking organic milk not only minimizes their potential exposure to toxic chemicals located in regular milk, but it also creates a healthier world in general. Organic farming has much less negative impact on the environment, which involves cleaner water, healthier soil, and less dangerous chemicals in the world. Not only does this have a positive impact on people s bodies, it also contributes to the restoration of the environment in general. The saturated fat that is in milk and many other products is bad for most people, especially if you don t have some sort of workout plan. As for me I am told to drink milk to gain muscle, because it is the easiest protein for your body to take in. With all of the physical activities that I do being on the Penn State Football Team, I will have less of a risk of having heart problems than people who do not participate in physical activity. That is why it is very important to get the right amount of exercise in order to burn the excess calories from the saturated fat that is contained in regular milk. Even with all of the exercise in the world, there are still problems that can not be taken care of by the consumer. The only way to be sure that you are not going to have physical problems because of milk is to refrain from drinking regular, whole milk and to drink liquids that contain the healthier calcium and protein that milk in known for. If you are a milk drinker, I encourage you to take a long hard look at all the risks involved with consuming this product. It could prevent you from having heart disease or other ailments associated with milk. So next time you see an advertisement for ?  °Got Milk  ± as yourself, ?  °Got Something Else  ±

Auditor Crazy Eddie

Auditor Crazy Eddie Question: What specific mistakes (apart from failure to notice â€Å"red flags†) did the auditor make? For each mistake, describe what the auditor should have done. If you were the Managing Partner for the CPA firm and had full knowledge of all the facts and events in this case, what changes in policy or procedures would you implement to make sure this audit failure does not occur in the future? The Crazy Eddies financial statements had many fraudulent over and understatements done in many ways that the auditors should have caught. They created fictitious revenues by a number of means. They prepared phony invoices showing sales which overstated their revenues to show the company was growing faster than they actually were. Their vendors collaborated in the fraud by lying to the auditors when the auditors attempted to confirm some of these receivables. The auditors were not diligent when they verified these invoices. They should have probed further into the vendors to verify that these sales occurred. They also should have understood the relationship between Cray Eddies and their vendors to understand if there were motives for fraud. They overstated their assets by overvaluing inventory. They would borrow merchandise from suppliers to inflate the ending inventory. The suppliers would ship the merchandise to the Crazy Eddies stores and hold the billing until after the end of the accounting period. The employees of Crazy Eddie went to great extents to deceive the auditors. They would move inventory to the stores or warehouses that were being audited to conceal the shortages. The auditors should have caught that the merchandise was not billed and understood what accounts they charged in the books when the merchandise was received. Another means of overstating the inventory was they shipped inventory from one store to another store so it could be double counted. This should have been caught by the auditors by having the entire inventory verified in parallel. The employees included in their inventory consigned merchandise and goods being returned to suppliers. This could have been found by understanding the details of Crazy Eddies inventory. The auditor should have identified the consigned merchandise and goods being return to separate it from the normal inventory. Crazy Eddie used the accounting periods to overstate assets and income. They held off closing the books past the end of the accounting period to overstated assets and income by boosting sales. The other means used was to reduce liabilities and expenses by not recording them until the next period. The auditors should have verified books at the end of the accounting periods to make sure that all transactions were recorded. The auditors needed to verify the transactions around the end of the period to verify their timing accuracy. Another category of fraudulent activities was when they were completing their financial statements. They didnt adequately disclose facts in the financial statements according to GAAP. The footnote during one period stated that certain income was recognized when received and the following period disclosed that income was recognized when earned. The auditors should have added an explanatory paragraph or a modification of wording for lack of consistent application of GAAP. Main Hurdman was the auditor for the companys annual audits and its consulting division was charging Crazy Eddie millions of dollars to computerize Crazy Eddies inventory system. This violates rule 102 for integrity and objectivity. Auditors cant objectively audit an inventory system they developed which means this is a conflict of interest. They should have chosen to develop the inventory system or be the auditor but not both. Crazy Eddies employees later stopped using the computer based inventory system designed by Main Hurdman and used their manual inventory system. The auditors should have noticed the change in the inventory system being used and understood why they changed. This should have been a signal that they were removing some of the quality controls in the inventory system. Many of Crazy Eddies accountants were former members of Main Hurdman accounting firm. The SEC added a requirement in the Sarbanes-Oxley Act that requires a member of the audit team not work at the client for one-year in certain key management positions. The firm is not independent with respect to the audit client if a former auditor accepts employment with the client. There were several reported instances where the auditor requested the client documents and were told that those documents were lost or inadvertently destroyed. Sarbanes-Oxley Act states that all working papers must be retained for 7 years. The inadvertent destruction of working papers that are less than 5 years has a penalty of 10 years in prison. The collusion of key personnel at Cray Eddies made it very difficult for auditors to uncover the fraud. If the auditors would have done a risk assessment prior to engaging with the client they would have identified a risk with so many family members employed at the company. The success and growth rate of Crazy Eddie was not normal. The auditors should have completed a comparative analysis of other electronic retailers. This would have shown that their high growth rate wasnt typical compared to others. This would have prompted the auditor to look closer at why they were outperforming the competitors. To prevent the CPA firm from having this occur in the future, they should follow the elements of quality control. The one element is the policies and procedures before accepting or continuing a new client relationship. They should complete a client evaluation form which includes evaluation of the clients management. If this was done in the Crazy Eddies case, they would have found that it was a risky client based on his selling techniques alone. The firm should follow the element of personnel management where all new personnel should be qualified to perform their work competently. The personnel should have adequate training and proficient. The field auditors for Crazy Eddies were young and inexperienced. The management team was able to manipulate and influence the auditors. The auditor needs to follow the procedure of verifying the inventory count by observing it. Precautions must be taken to avoid allowing the inventory to be moved by verifying it in parallel if multiple locations exist. Crazy Eddies auditors were fooled by not taking precautions to avoid double counting the inventory. The firm must follow the Generally Accepted Auditing Standards. One of the standards of field work is to obtain a sufficient understanding of the entity and its environment including its internal control. If this was done, the auditors could have seen that Crazy Eddie had influence over his suppliers to cooperate in inflating the assets. The change in the inventory system back to the manual system showed a lack of internal control. The firm must follow the rules of conduct. They must keep their objectivity by not providing other services such developing or advising an inventory system. They must remain independent by not auditing a client that has former members of the audit team working at the client within one-year.

Defining Good Advice :: Definition Essays

Defining Good Advice The first thing I know about good advice is that it can come from anyone. I found this out by looking at the narrative stories that we had to write in the beginning of this assignment. For example, J.Lutts got his advice from a friend, while Chris Lefstad got his advice from his uncle, and Nate Hilson and Nate Hall both got their advice from their parents. Although, Robyn Isaacs says, â€Å"Usually it (advice) is given to me by someone I know and trust on a personal level.† I don’t totally agree with this. I think that good advice can come from people we don’t know. For instance, take the three text book examples of giving advice on using contractions. I don’t personally know any of the people that are giving me this advice. The part that I do agree with Robyn is that you do need to trust the person on a personal level. I trust that the authors of these text books know what they are talking about when they give me advice on using contractions. I wouldnâ₠¬â„¢t take advice from a five-year old on when to use contractions, and when not to use contractions. The next thing that good advice depends on is how it is said. Sometimes when I get good advice, it needs to be expressed in an urgent way. Someone can yell at me to get out of the way when I am walking right into traffic. It is good advice and it needed to be hollered at me, otherwise I wouldn’t have paid attention to it, and I wouldn’t know how important this advice is to me. But other times, good advice needs to be said on the same level as I am on. I wouldn’t want my dad to yell at me when he was giving me advice on switching schools. I wouldn’t listen to him. He has to talk to me on the same level. I wouldn’t ask someone for advice if I didn’t think that they would give it thought, and suggest to me in an appropriate way, what their opinion on the subject is. That leads to another characteristic of good advice. When I seek good advice, I am going to go to someone that knows something about what I am going to ask. Chris Lefstad asked his uncle for advice on choosing a specific career in computers because his uncle went through the same thing.

Five Major Social Institutions :: essays papers

Five Major Social Institutions How has my personality been shaped by the five major instutions? Firstly, my family is one of the most influential parts of my life. My family has taught me all the values that I think that I would need in life. I was not raised in an abusive family, which shapes my personality by making me less aggressive towards my peers, and teaching me that you can^t get your way through force, but by patience. I think that my family has positively affected my life through treating me like I^m a person, something that gets hurt easily. Does education really affect the way I am? Maybe not directly, but indirectly. Education is a means of teaching some values, but that^s not education^s main purpose. Education teaches us about a great many things. In kindergarten, you learn the alphabet and to count to ten, in elementary school, you learn penmanship, and the four basic ways to get seventy through a chain of addition, grammar, and we start to want to do our own thing instead of everything that our parents want^s us to do. So, does education really affect our personality? No, it does not affect us. But, our friends at school do. Our friends will be either our good friend, or our worst enemy by the time we^re in high school. Friends shape the most of our personality out of the family. Another way that our friends have shaped the way that we are, is the way they treat us. For example, your friends call you names, talk trash behind your back, and generally talk trash around you now do you think that you would have good self-esteem? I do not think that would be possible, even if your parent are always calling you nice things, spoiling you rotten, you would still have bad self-esteem. The economy is a very essential part of our daily life, it shapes what shape our town or city will be in. If the economy is poor, do you think that it will draw a huge tourist crowd if the whole town or city was a ghetto? I personally do not think so. I think that it would turn out to be a heavily gang populated city, with many drug deals and prostitution going on. Luckily I was not raised in the ghetto, not to say that I am a particularly rich person, my family is just a little off to the good to do side, but not really. The economy has shaped the way that I am by where I was raised, I was for the majority of my young

The Piltdown Man :: essays research papers

1. A hoaxA hoax: n. 1. Practical joke 2. Deceptive trick 3. Play trick upon 4. Decieveexample: Piltdown ManFor forty years they were considered one of the archaeological finds of the century: A fragment of jaw and a part of a skull that could prove man evolved from the apes. They were the bones of Eoanthropus dawsoni found near Piltdown Common in Sussex. The bones of the "Missing Link." Not since 1953 the name "Piltdown" hasn't been associated with great scientific discovery, but great scientific fraud. It was in that year that a group of scientists, lead by Kenneth Page Oakley, attempted to use the new method of fluorine testing to get a more exact date on the bones. What the test showed surprised them: The jaw was modern and the skull only six hundred years old. Additional analysis soon confirmed the fluorine tests. The jaw was really that of an orangutan. It had been filed down and parts that might have suggested it's simian origin were broken off. Both pieces had been treated to suggest great age. Piltdown was proclaimed genuine by several of the most brilliant British scientists of the day: Arthur Smith Woodward, Arthur Keith and Grafton Elliot Smith. How did these faked fragments of bone fool the best scientific minds of the time? Perhaps the desire to be part of a great discovery blinded those charged with authenticating it. Many English scientists felt left out by discoveries on the continent.Neanderthal had been found in Germany in 1856, and Cro-Magnon in France in 1868. Perhaps national pride had kept the researchers from noticing the scratch marks made by the filing of the jaw and teeth. Items that were apparent later on to investigators after Oakley exposed the hoax. Even as early as 1914, though, there were those that doubted the fossils. William King Gregory wrote, "It has been suspected by some that geologically [the specimens] are not old at all; that they may even represent a deliberate hoax..." Who perpetrated the hoax? Many historians lay their bets on Charles Dawson, the amateur geologist that supposedly discovered the bones in a gravel pit. Others, though, lay the blame at the feet of people as diverse as a young Jesuit priest, named Teilhard de Chardin, who assisted in the dig, to the author Sir Arthur Conan Doyle, who lived in the area. Dawson was an English solicitor who sought and collected fossils.

Investigation of the hill reaction

Theory: Photosynthesis is a process carried out in plants, in the photosynthetic organ which is the leaf. CO2 + H2O –> (CH2O)n + O2 A plant takes in CO2 and H2O and absorbs sunlight in order for photosynthesis to take place. These reactants then travel to the chloroplasts in the palisade cells of the leaf, where the actual process takes place. In photosynthesis there are two reactions; the light dependant reaction and the light independent reaction. The light dependant reaction takes place in thylakoids of the grana of the chloroplasts whereas the light independat takes place in the stroma. The thylakoids of the chloroplasts contain pigments which can be divided into accessory and primary pigments. These pigments form light harvesting clusters which can then be divided into different photosystems, those being photosystem I and photosystem ll. In photosystem I, the accessory pigments trap energy from the sunlight and funnel it to the primary pigment or chlorophyll a. This then becomes excited and releases an electron which is accepted by an electron acceptor. The electron then moves through a series of electron carriers arranged in order of their redox potentials. Meanwhile, the photosystem is said to be unstable as a result of chlorophyll a losing an electron. The electron then moves back down the series of electron carriers to return to stability producing energy thus A.T.P. Photosystem II differs in that the process is non cyclic (i.e. the electron emitted from chlorophyll a does not return to chlorophyll a), it produces NADPH and O2 as a by-product in addition to A.T.P. and photosystem I is in fact a component of photosystem II. In this case the electron emitted from chlorophyll a travels through a series of electron carriers and then is accepted by a hydrogen ion (which is then picked up by NADP+) and this upsets the equilibrium for the splitting of water, causing more water to split. However, the electrons harvested from the splitting of water goes to photosystem II(which would have been energized to release an electron simultaneously with photosystem I), which would have been unstable. Also, the electron that left chlorophyll a from photosystem I would have passed through a series of electron carriers, arranged in redox potentials, to stabilize photosystem I producing A.T.P. The NADPH and A.T.P are then transported to the Calvin cycle. Apparatus: * Filter funnel * Muslin * Mortar/pestle * Ice/salt water bath * Lamp * Test tubes * Foil Materials: * Lettuce * DCPIP (blue) * Isolation Medium * Chloroplast suspension Method: 1. The chloroplast suspension was prepared and placed in test tubes covered with aluminium, then placed in salt/ice water. 2. 0.5 ml of the suspension was then placed in another test tube followed by 5 ml of DCPIP. 3. The foil covering that tube was then removed and the exposed solution in the test tube was placed next to the light source of the lamp at a measured distance of 10 cm. 4. The time for taken for the blue DCPIP to turn from blue to colourless was then observed and recorded. 5. 0.5 ml of the isolation medium was placed in a test tube followed by 5 ml of DCPIP solution. 6. This solution was then placed at a distance of 10 cm away from the light source and the time taken for a colour change was observed and recorded. 7. 0.5 ml of the chloroplast suspension was placed in a test tube followed by 5 ml of DCPIP. This was then placed in the dark and the aluminium foil was not removed. 8. The time taken for a colour change from blue to green was then observed and recorded. Diagram: Diagram 1.0 shows setup of apparatus to check time taken for colour changes in tubes. Results: Tube Time taken for colour change from blue to colourless/min 10 cm away from light source 1.53 100 cm away from light source 15.55 Isolation in medium only No change Tube in dark No change Table shows different times for colour changes to be observed. Discussion: Photosystem ll as mentioned in the theory, NADPH and 02. In this process light strikes both photosystem l and ll, the energy is funneled down by the accessory pigments to the primary pigment and this causes the primary pigment from PS l and PS ll to release an electron. The electron from PS l is accepted by an electron acceptor and then passes through a series of electron carriers arranged in their redox potentials. The electron then is accepted by another electron acceptor and then neutralizes the H+ in the splitting of water. H2O – 2H+ + 2e- + O2 This H is then picked up by NADP and forms NAPH. NADP is therefore an electron acceptor. As the H is picked up, this disturbs the equilibrium causing more water to split. However, Robert Hill discovered, that isolated chloroplasts can in fact, liberate oxygen, from the equation above, in the presence of an oxidizing agent or an electron acceptor. In photosynthesis this is NADP but another one, that being DCPIP can be used in isolated conditions. In this process, the DCPIP which is blue becomes reduced DCPIP which is colourless. This is known as the Hill reaction. In the experiment, the mortar/pestle was used to grind the lettuce and the muslin is used to collect the isolation medium. The isolation medium is a solution made up of sucrose and potassium chloride dissolved in a phosphate buffer. The isolation medium provides a buffered environment which does not allow the chlorophyll to leave the lettuce leaves. In this experiment, the light source used was a lamp. In this case, the light intensity was varied by changing the distance from the light to the tube. The relationship between the amount of light and the distance is said to be one that obeys the inverse square law. For example if 10 cm were 100 units then 20 cm would be 10 units. With all other factors being constant and optimum, the light intensity is said to be a limiting factor, i.e. a factor that would the control the rate of photosynthesis. Therefore as the light intensity increases, so should the rate of photosynthesis thus, as the distance of the tube from the light source decreased, the time taken for the colour change to take place should have taken longer, which was the case. It can be observed that as the distance increased to 100 cm away from the lamp, the time taken for the colour change at 10 cm, 1.53 minutes increased to 15.55 minutes. The investigation then goes on to show that in the presence of the isolation medium only, in the tube there was no colour change at all. This is because the isolation medium contained no chlorophyll for photosynthesis to take place. However, when the tube with the chloroplast suspension which includes the isolation medium was placed in a tube, but in the dark, there was no colour change either. This shows that light is needed for photosynthesis to take place. Precautions: * The amount of chloroplast suspension and DCPIP placed in the tube was standardized. * The distance of the light source from the tube was ensured with a centimeter ruler. * The salt/ice water was used to preserve the samples so that no biological activity would have taken place before the experiment had taken place. * The aluminium foil was used so that no light would have entered the sample before the experiment started. Limitations: * The DCPIP was blue in colour and the chloroplast suspension was blue in colour. Therefore, the colour change was not from blue to colourless and this could have affected one's observation of the colour change. Sources of error: * The experiment was done during the day and sunlight entering the room could have affected the results in some way of it had any exposure to the test tubes. Improvements: * It could have been ensured that the room was completely dark or sunlight was not reaching the tubes in any way. * The amount of light could have been reduced by putting layers of tissue paper between the light and the test tube to produce a range of light intensities.

Life and work in Merthyr Tydfil in the nineteenth century

The growth of industry in Merthyr was the main reason for the huge increase in population over a hundred years from 1750 to 1851. The population was estimated at four hundred people for the year 1750,this was just an estimate so we do not know how reliable this is as it is just an estimate and was not an official system. However by 1801 the first census was introduced and this produced an official figure for the population in Merthyr at the time, which was seven thousand people. This shows a massive increase in population in just over fifty years. The population continued to rise up until 1851 where it reached forty six thousand people. Source A1 The population of Merthyr Tydfil Year Population 1750 400 1801 7,000 1831 30,000 1851 46,000 The area of Merthyr was ideally situated for an iron works, as the mountains above were inexhaustible sources of Iron ore, coal, limestone, firestone and fire clay. There were several iron works in Merthyr at the time but the ones of Mr.Crawshays were the grandest and largest. The workers earnings averaged à ¯Ã‚ ¿Ã‚ ½3 a month. This covered Men, Women and Children. The maximum wage of the workers was nine Guineas, which was à ¯Ã‚ ¿Ã‚ ½9.45 per month. However this compared to Crawshay was nothing as he was earning a bumper à ¯Ã‚ ¿Ã‚ ½36,000 per annum. These facts and figures come from source A2 from the resource booklet. Rev. George Capper produced the source in a journal of a tour of Wales. This therefore makes the source a very reliable piece of evidence as Reverend George wrote it, who would have been a trustworthy and respected member of society. Also he would have had no reason to adopt a biased view on the subject. The source is very useful to a historian studying the works in Merthyr as it gives information regarding the size of the works and wage structures of the factory. Transport played a major part in the growth of Merthyr as an industrial town. In 1790 plans were put forward to construct a canal, which would go from Merthyr to Cardiff. It cost à ¯Ã‚ ¿Ã‚ ½103,600 and took four years to build. On its completion in February 1794 the canal measured 241/2 miles. The canal allowed raw materials to be transported at a much faster rate than previously, it could also transport a larger amount of goods at a time, compared to the old method of a horse and cart. Source A5(ii) shows how in ten years the use of the canal went from 83,729 tons of coal a year to 211,214 tons of coal a year. The levels of discontent in Merthyr started to rise at the start of the nineteenth century. There were many factors that contributed to this; one of them was truck tokens that were issued to workers as payment. This caused discontent because the tokens could only be spent in the shops, which were owned by the truck companies. The goods were highly priced and poor in quality, this along with a number of other issues including the state of the government at the time eventually led to the start of the riots in Merthyr at the start of the nineteenth century. Source B2 explains how the riot in Merthyr had reached such a point that it would be impossible to stop without the assistance of the military. It also explains what the rioters were doing during the riot, how they had demolished truck shops, the main one being the Morgan Lewis shop. It goes on to say that he thought there were in excess of two thousand people ‘doing all the mischief they can.' G.Lyndon produced the source in a letter to Samuel Homfray on the 22nd September 1800. It would have been reliable because the letter was taken from the time of the riot, also source B3 is shows a painting of troops arriving in Merthyr which backs up what is said in the letter. The painting is a contemporary painting by Penry Williams. Even though it is a contemporary painting it may not be an entirely reliable source as the artist may have exaggerated the scene, it would have been more reliable if it had been a photo instead of a painting. This would affect the usefulness of the source to an historian studying the events in Merthyr. The usefulness of the letter is that it would have been able to tell historians exactly what was going on in Merthyr at the time and how serious the riots actually were. At the start of the nineteenth radical ideas started to become more popular in Merthyr. They believed that wide scale reforms were needed in Merthyr at the time. These views are put across in source B4, which is part of an anonymous paper, found near Penydarren on 27th January 1817. It talks about the misery of the people of Merthyr and how if changes are not made soon the workers will take the law into their own hands. Source A1 shows the growth in population in Merthyr over a hundred years from 1750 to 1831. Source C1 shows the census of 1851 in detail. The reliability of this source is put into question as it says that the total population in Merthyr in the year 1851 is six thousand, five hundred and twenty eight. If this is compared to source A1, where it states that the population in Merthyr was actually thirty thousand people. Therefore there is a difference of nearly twenty five thousand between each source. This also casts doubt over the reliability of source A1, however in my opinion source I believe that source A1 would be more reliable than source C1 because source A1 supports the fact that Merthyr was booming due to the increasing size of the ironworks at the time.

Supervisors: Human Resource Management and Performance Appraisals

Introduction Performance appraisals benefit the company in a variety of ways. On the flip side, they can also create difficulties if they aren’t completed correctly. Many problems within the company can arise when supervisors haven’t been properly trained on appraisals. On a bigger note, companies can also be placed in legal trouble if appraisals are done incorrectly. To avoid these issues, the Human Resource Department needs implement training to the supervisors who conduct performance appraisals. ProblemsEmployee Development Using performance appraisals for developmental purposes is one of the greatest uses of them. Employees need to be aware of their strengths and weaknesses in order to produce the best results for the company. Improvements in performance will only occur if the manager has proactive discussions and shows the employee how to make improvements. In this case, Hubert isn’t helping Harriet by fibbing on her performance appraisal. She will continue to â€Å"slip† on her duties because she might not be aware that she is doing it. Reviewing a negative performance appraisal can be a very difficult task, but needs to be done to help the employees develop within the organization.Rating employees the same on the appraisals will not benefit the company at all. Not only is he hindering Harriet’s development, but it probably doesn’t keep Neil motivated. If his performance is outstanding, his rating needs to reflect that. Hubert should be able to tell him how valued he is to the company and how much his performance is appreciated. Retaining good performers is easier when these positive performance aspects are communicated to them. When done correctly, appraisals help to increase employee development and keep valuable employees motivated.Administration UsePerformance appraisals are also used for administration use, an example being what the case represented. The way Hubert is conducting appraisals will not help manag ers when it is time to determine pay increases, decisions need to be made about promotions, transfers, and demotions, or if disciplinary actions lead to termination (Mathis & Jackson, 2011). Now that it is time to make demotions, the appraisals need to help with decisions.These appraisals are not accurate due to Hubert lack of correctly evaluating both supervisors (Mathis & Jackson, 2011, Case: Supervisors). Since there is no documented differences between the two supervisors, the appraisals are useless for administration use. â€Å"An appraiser should be required to provide justifications for the ratings in addition to appropriate documentation and information† (Smith, 2012). The company is going to have to let the better performing supervisor go in order to avoid legal issues. This could create some negative impacts for the company because the appraisal process wasn’t being implemented correctly.Legal IssuesDisparate Impact or TreatmentDiscrimination can either be in tentional or unintentional; either way it is illegal. Performance appraisal need to show an absences of disparate impact and treatment (Mathis & Jackson, 2011). Using the scenario from the case, Harriet could file a lawsuit for discrimination is she were to get demoted or laid off during the reduction in force. Since there is no documented differences in their performance, Neil should be let go due to the seniority Harriet has over him. There could be grounds for a lawsuit if Hubert decides to demote or laid off Harriet.She could claim that they fired her because of her gender, and there would be no way for the company to prove that she was the poorer performer. There have been similar cases like this. â€Å"Adverse impact statistics have also been used successfully in â€Å"Disparate Treatment† cases to support an individual’s claim of race or gender discrimination† (Ducham, 2013). The importance of training manager correctly and evaluating the appraisal system s comes to light in this case.Supervisor TrainingIt is important for companies to properly train their supervisor avoid legal issues with performance appraisals. These appraisals are very beneficial to the company and training of them should be stressed by the Human Resource Department. From the situation that occurred in this case, it seems as if Hubert hasn’t had any training on performance appraisals. To avoid situations like this from happening in the future, Hubert and all supervisors/department heads need to be trained on how to do these appraisals correctly.Mathis and Jackson (2011) pointed out some key topics that Human Resources should focus on when conducting training on appraisals. For this company, training how to communicate positive and negative feedback, when and how to discuss training and developmental goals, and how to avoid the common rating errors should be addressed (p. 347). ConclusionHubert has created a problem for this company, but has showed the impo rtance of proper training on appraisals. The company needs to evaluate their training procedure and make the appropriate changes. With a good training program in place for supervisors, the company will be able to avoid future problems with appraisals.

Mcb Internship Report

[pic] INTERNSHIP REPORT ON MUSLIM COMMERCIAL BANK Instructed by: Mr. Naveed Ahmed Lecturer Comsats Institute of Information Technology Presented by: Muhammad Hussain MBA-A Roll No. 65 Semester 3 DEDICATION I dedicate whole of my education along with my life to my beloved parents and respected teachers, who were always kind to me. May God Bless Them (Aamin). Muhammad Hussain TABLE OF CONTENTS 1. Preface 2. Introduction Of Bank 3. Types of Bank 4. Executive Summary of MCB 5. History of MCB 6. Vision & Mission Statement of MCB 7. Commercial Bank 8. Branches & ATMs 19 9. Product & Services21 10. Department in MCB25 11. Management Hierarchy28 12. Investment Banking 13. Know Your Customer 14. Remittance Department 15. Financial Statements 16. SWOT analysis 17. Work Performed By Me 18. Findings 19. Recommandations PREFACE Banking sector owes a pivotal importance in the economy of any country through its variant functions. This basic motivator that stressed me to join any bank for Internship Training. Moreover, the experience and practice learned during this tenure also prove very helpful and facilitating in the forthcoming professional life. This report is the result of two months Internship will, Muslim Commercial bank, Kot Fareed, Sahiwal. The motive behind selecting this bank is that it is one of the Top 10 Asia, Bank‘s. The fact remains that Muslim Commercial bank, posses an excel/cut and historical importance being the most senior and leading in terms fluids and services to Pakistan at all ages of life. I had with the strong belief that this report will guide and facilitate the readers to understand the functioning of banking system and more importantly have good knowledge about Muslim Commercial bank. My utmost efforts to elaborate this report wit, material read, listened and observed. Yet, I feel that this period was not long enough to learn and understand the complex and widespread functioning of banking sector. I am really thankful to the entire staff members of the aforesaid branch for the friendly and cooperative behavior during my internship. Muhammad Hussain MBA-A Roll No. 65 w ell-developed banking setup plays very significant role in the economic development of a country. Banking sector is precondition for the development of any country. The banking sector helps in proper utilization of resources of the country by financing the less developed sector. It also helps to keep cumulative demand in proper balance with the supply of those resources, which are responsive to monetary demand. DEFINITION OF BANK. â€Å"A bank is an institution, which deals in money. † I BROADLY SPEAKING â€Å"Banks draw surplus money from the people who are not using it at that time, and lend to those who are in a position to use it for productive purposes. † 2 IN OTHER WORDS â€Å"Bank also accepts the deposits from public repayable on demand or otherwise and withdrawal by cheques. Drafts order and include any post office saving bank. † BANK. The word bank is said to have been derived from the Italian words â€Å"Bancus† or â€Å"Banque†. The History of banking is transacted to be as early as 200 B. C. PEGETS DEFINITION: no one anybody. Corporate or otherwise can be a banker who does not: I Open current account 2 Pay cheques drawn on him 3 Collect cheques for his customers. HARTS DEFINITION. â€Å"A hanker is one who is in the ordinary course of his business, honors cheques drawn upon his by persons from and for whom he receives money on current account. † ACCORDING TO THE BANKING COMPANIES ORDINANC, 1962: SECTION 5(B): â€Å"Banker means a person transacting the business of accepting, for the purpose of lending or investment, of deposits from the public, and withdrawal by cheques, drafts, order of otherwise, and inclined any post office saving banks. † IMPORTANCE OF BANKING. Banks play very important role in the economic life of a nation. The growth of the economy is dependent upon the soundness of its banking system. Although banks so not create new wealth but borrow, exchange and consume. These make generation of wealth. In this way. They become most effective partners in the development of that country. To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks deposit surplus from the public and then advances the surpluses in the form of loans to the industrialists, agriculturists, businessmen and unemployed people under different schemes so that they setup their own business. Thus banks help in capital formation if there are no banks, and then there would be concentration of wealth in few hands great portion of wealth of a country would be idle. In the fewer developing countries rate of saving is very low and due to this rate of investment and rate of growth is very low. We can take hank just like a heart in the economic structure and capital provided by it is like blood in it. As long as the blood is in circulation, the organs will remain sound and healthy. If the blood is not provided to any organ then the organ would become useless. So if the finance is not provided to agriculture sector or to industrial sector, it wills he destroyed. Loan facility provided by bank works as an incentive to the producer to increase production. Banks provide transfer of payment facility, which is cheaper, quicker and safe. Many difficulties in the international payment have been overcome and volume of transactions has been increased. These facilities are very much helpful for the development of trade and commerce. EVOLUTION OF BANKING IN INDO PAK SUB-CONTINENT: The Indian society was quite familiar with the banking, right for the beginning. There is also sufficient evidence to show that during 51h century people were accustomed to use 1-lounds as a credit investment. Loans were given to the people against personal and other Securities such as ornaments, goods and other immovable properties. TYPES OF BANK: Following is the list of various types of banks: Central Bank Commercial Bank Exchange Bank Industrial Bank Agriculture Bank I. COMMERCIAL BANK: The banks in any country speeded over with an objective to get the excessive money Form the public in the form of deposits and providing finance to the investors. These Banks are in the ground for profit earning motive and in competition with each other. These banks are providing the basic services to the customers in the form of deposits, Advances, remittances and others. Commercial Banking Scenario In Pakistan: At the time of Independence in 1947. ther were 38 scheduled banks with 195 offices in Pakistan. But by December 3l†, 1973 there were 14 scheduled Pakistani Commercial Banks with 3233 Branches in Pakistan and 74 Branches in the Foreign Countries Nationalization of banks was done on 1st January 1974 under the Nationalization Ac 1 947 due to certain objectives. But it had negative effects on the efficiency of the banking sector. Afterwards, a Privatization Commission was set upon January 22nd, 1991. The Commission transferred many banks to the private sector, i. e. Muslim commercial Bank and Allied Bank Limited. The Govt. approved and permitted the establishment of 1 0 new private banks in August 1991 Functions of commercial Banks: I borrowing of money from customers in shape of term deposits (PLS Saving Current Deposits and Notice Deposits). 2 Lending of money to borrowers in shape of finances, short-term finances, and long-term finances under various names such as Demand Finance , Small Finance, Cash Finance. 3 Agency services. 4 Remittance of money. 5 Foreign exchange business, foreign currency deposits. LCS, Imports and exports etc. ROLE OF COMMERCIAL BANKS IN THE ECONOMIC DEVELOPMENT OF A COUNTRY: Banks play an important role in the economic development of a country. If the banking system is unorganized and inefficient, it creates market adjustments and impediments in the process of development. In Pakistan, the banking system is organized in well manner. The State Bank of Pakistan since July 1st. 1984 stands at the apex and is responsible of the operation of the banking system. The other bands, which form the banking structure in Pakistan, are playing role in h he economic development of the country. The role of the commercial bank in the growth and development of the economy on sound and steady footings is discussed briefly as follows: Mobilization of Resources: The commercial banks are the most efficient organization of the economy in the mobilization the resources and making a profitable pool of these resources. Taking the Money from the savers and lending it to the investors is the most prominent job of the hank Financing Development Projects: The banks and other financial institutions advance loans for the development projects that enhance the pace of overall development of the country. These advances are made in both public and private sectors for the purpose of achieving a good and strong economic field to catty on the other activities of trade and business. Creating Climate For Capital Formation: Capital formation is done by the act of accepting people’s money and putting into Profitable ventures. This money so accumulated, make possible the availability of the needed capital by the investors. The investors on the other hand are able to get the needed funds that shortfall their requirements. Planned Development: With the help of well-organized banking sector the government is able to make good Implementation of its economic planning and can execute developmental activities for the welfare of the society. Promotion of Saving Habit: There are persons who have money but cannot put them in profitable use. The banks attract these persons by offering a variety of accounts. They provide them not only the safety of the funds but also higher returns on them. The banks, in this way, promote the habit of saving among the people. Effective Implementation of Monetary Policy: With the help of a good banking system in the country the government and the central Banks regulate the monetary supply and demand of the money. A good system helps in the implementation of the policies that are formulated by the government. l through these banks using different techniques of credit control makes credit expansion and contraction. Narrowing Regional Disparity: The banks help in bridging the country. The surplus fund of on Region is sent to the centers of deficit. The less developed areas acquire funds, put them into productive channel and increase production. The banks help in a balanced growth the economy. Executive Summary CORPORATE   PROFILE Mian Mohammad Mansha Chairman S. M. Muneer Vice Chairman Tariq Rafi Shahzad Saleem Sarmad Amin Aftab Ahmad Khan Atif Yaseen Dr. Muhammad Yaqub Mian Raza Mansha Atif Bajwa President / CEO Board Committees : Audit Committee Dr. Muhammad Yaqub Chairman Tariq Rafi Member Mian Raza Mansha Member Atif Yaseen Member HR Committee Mian Muhammad Mansha Chairman Dr. Muhammad Yaqub Member Mian Raza Mansha Member Atif Bajwa Member Risk Management Committee Mr. Tariq Rafi Chairman S. M. Muneer Member Mian Raza Mansha Member Aftab Ahmed Khan Member Committee on Physical Planning, IT System and Contingency Arrangements Sarmad Amin Chairman Atif Yaseen Member Aftab Ahmad Khan Member Atif Bajwa Member Business Strategy & Development Committee Mian Mohammad Mansha Chairman S. M. Muneer Member Tariq Rafi Member Mian Raza Mansha Member Atif Bajwa Member Credit Committee Shahzad Saleem Chairman Sarmad Amin Member Tariq Rafi Member Mian Raza Mansha Member Chief Financial Officer Tahir Hassan Qureshi Company Secretary Abdus S. Sami Auditors KPMG Taseer Hadi & Co Chartered Accountants Riaz Ahmed & Co. Chartered Accountants Legal Advisors Mandviwalla & Zafar Advocates & Legal Consultants History of Muslim Commercial Bank The Muslim Commercial Bank Limited was incorporated on 9th July 1947 in Calcutta in Bengal. After partition, the Registered Office of the bank was hifted to Dhaka where it commenced business from August 1948. The Bank transferred its registered/Head office from Dhaka to Karachi in 1956. In 1999, its registered / Head office was transferred to Islamabad and Karachi office was named as principal office. The government transferred a 26% management stake to a group of leading industrialists, collectively named National Group of which Mian Mohammad Mansha is the Major stakeholder. In 1992 a further 24% was sold to the National Group. The current shareholding structure is 50% Nationa l Group, 25% government and 25% floated on bourses. NATIONALIZATION OF MCB Muslim Commercial Bank Limited was nationalized by the Government of Pakistan in January 1974 under the Banks Nationalization Act, 1974. Subsequent to nationalization the operations of premium Bank Limited were merged with the Muslim Commercial Bank Limited in June 1974. PRIVATIZATION OF MCB The previous Government declared the privatization policy as one of its main objectives and in accordance with its policy, the Government offered Muslim Commercial Bank Limited for privatization. The Bank was the first Public sector bank, which was privatized on 2nd April 1991. The Government of Pakistan transferred management of the bank to Private Industrialists and Entrepreneurs, â€Å"National Group† by selling 26% shares of the Bank at Rs. 56 per share. Present Status Over the years Muslim Commercial bank fostered strong bonds with its customers. MCB understands them; their needs. They feel comfortable with MCB; its their bank; it responds to them; listens to them; partners with them; grows with them. That is why it is one of the leading commercial banks of the country, providing a wide range of modem banking services. At present, the banking network consists of over 1000 branches along with – controlling offices known as Area Head offices and Regional Head offices. These controlling offices are responsible for the smooth operation of the bank on National & international levels. The entire financial and operational objectives are achieved with the Human Resources strength over 12000 employees. The bank is known as the major credit provider, best place of working and paymaster in the financial (money market) of the country. Over the past few years, MCB's profits have been hit by the need to increase provisions coverage and restructuring costs associated with the downsizing of the workforce and branch network, whilst there is some need to boost provisions, these charges (necessary to bring the bank back into shape) are largely over. It has also slowly received permission from the SBP to shut down a number of unprofitable branches. In 1999 EURO MONEY recognized MCB as the best domestic bank in Pakistan. The banking sector has been worst hit by the external account crisis that Engulfed the country following the nuclear tests. Due to the nature of banks as a Medium for debt transactions the country's technical default and subsequent rating downgrade impacted them the most. Those core concerns are still not fully alleviated in the view of the investors. The closest that investors have come to positive expectations regarding external account sustainability and a possible re- rating was back in the fourth quarter of the year 1999, and this led to MCB climbing to Pakistani rupees 56 per share. Resumption of the IMF funding and a possible rescheduling of bilateral debt will positively impact the banking sector and especially MCB. State Bank of Pakistan continued the process of Banking Reforms, which included strengthen of Prudential Regulations and focus on recovery of defaulted loans. In 1999 return on Government Savings Scheme and Treasury Bills was reduced, which led to a lowering of lending rates, resulting in erosion of margins for banks but it is likely to give a boost to economic activity. MCB Rupee travelers Cheques continued to maintain their leadership position in the industry and sales registered a 45% growth over last year. MCB successfully introduced the Rs. 100, 000 denomination cheque countrywide and introduced RTC dialup tele-verification facility from Lahore city as well. Mainly there are three types of Banking in MCB. These are: CORPORATE AND INVESTMENT BANKING Corporate Banking Group of MCB is focusing on top tier local corporate groups and multinationals in a structured and focused manner building relationships leading to increased market share. Branches having Advances of Rs. 100, 000,000 per party relationship and monitoring such advances are called as Corporate Branches. These branches include corporate clients and their requirements are looked after. There are about 20 corporate branches of MCB in Pakistan. OUR VISION & MISSION Vision Statement To be the leading financial services provider, partnering with our customers for a more prosperous and secure future. Mission Statement We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest in us with confidence. COMMERCIAL BANKING The Commercial Banking Group of MCB continues to service the trading Community and middle market, with sustained focus on developing new customer relationships and increasing the asset portfolio. CONSUMER BANKING The Consumer Banking Group focuses on the lower end of the market and micro credit. Individual customer needs are being serviced through the introduction of diverse lifestyle consumer loans and introduction of new products and partnerships with service providers. Customers will continue to use the extensive branch network, which in turn will generate deposits to feed the asset development and liquidity requirements of the Bank through its diversified and stable deposit base. ATM TECHNOLOGY At MCB, technology has a direct relationship with the needs of the customers, it is a mean of creating value and convenience for the customer. Over the last few years MCB has invested heavily into strengthening its technology backbone. Today it is leading the way in banking technology and setting new standards for the banking industry, penetrating into the local market, listening to the needs of the people. MCB’s strength lies in providing technological base at a grass root levels of the society with a challenge to educate and assimilate such systems across vast cultural and economic backgrounds. With over 768 automated branches, 243 online branches, over 151 MCB’s ATMs in 27 cities nationwide and a network of over 16 banks on the MNet ATM switch, MCB continuously innovates new products and services that harness technology for the customer’s benefits. Additionally in order to enhance the utility of the ATM services they successfully linked their ATM network to the MasterCard, Cirrus and Maestro, effectively becoming part of the largest ATM network in the world. MasterCard and Cirrus/Maestro users can now access their ATM's network. Together with the above MCB made a strategic decision to establish an ATM switch and open their ATM network to other banks. The ATM switch has been named MNET. It has following banks in MNET switch: Standard Chartered Citi Bank MCB ATM  SERVICES MCB ATM Card Welcome to a world of convenience with the MCB ATM 24- Hour Smart Card. â€Å"It Works. Anytime in Pakistan and abroad. † With an ever growing number of ATMs operating across the nation, the MCB ATM Network is the largest and most advanced of its kind in the country, and is part of MCB's continuing efforts to provide you with convenience that suits your requirements most. And now the MCB ATM has gone global. MCB's affiliation with Master Card International brings about added facilities for the MCB traveler abroad with the Cirrus and Maestro networks. So go ahead! Use your MCB ATM 24- Hour Cash Card day or night, at home or abroad. MCB ATM Regular Card The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of 3 withdrawals per day per card. BRANCHES & ATMs Mnet MNET enables all the member banks to share their electronic networks. Which means customers of member banks can use MNET as well as 1-Link ATMs Nationwide. MNET member banks ATM machines accept cards issued by MCB Bank Ltd, Citibank, Standard Chartered, HSBC, Saudi Pak Bank Limited, Habib Metropolitan Bank, JS Bank, Deutsche Bank, SME Bank, Arif Habib Rupali Bank and First Women Bank. MNET customers can use over 600,000 ATMs worldwide that carry the logo and shop at over 5 million outlets that carry the logo. M-Net switch has currently 612 ATMs in 50 cities. We plan to have the network grow in faster pace in future as MCB itself will be adding more ATMs by the end of the year. The ATM deployment has been planned in such a manner that a customer will be only a few minutes away from an ATM in major cities. This coupled with geographic coverage provides the largest convenient spread in the country, because of which we are very strongly concentrating on Diverse Coverage & Convenience. M-Net Switch ATMs are present in all the major cities of the country. They are available in the hilliest and northern areas of the country such as Murree, Abbottabad and Swat etc thus providing convenience of accessing 24 hours cash to the customers across the country. M-Net switch also has its Service Centers in the main cities of the country providing support to member banks customers. M-Net Switch ATMs are also present in all 3 main Airports of Pakistan i. e. , Jinnah Terminal (Karachi), Allama Iqbal International Airport (Lahore) & Islamabad International Airport. MEMBER BANKS & their ATM Locations In Pakistan, the ATM facilities can be availed at any of the following locations: MCB Bank Ltd. Standard Chartered CITIBANK Saudi Pak Bank limited HSBC Habib Metropolitin Bank Arif Habib Rupali Bank Deutsche Bank First Women Bank SME Bank CORPORATE IMAGE BUILDING In view of Goals established through mission and vision statement, the first step taken was to change the corporate image of the Bank, which inclined following aspects: In 1991 Bank changed its logo from to current logo which is: Which signifies the growth and prosperity? The change of logo was part of effort to change image of the Bank as a progressive bank in the minds of people of country. A comprehensive electronic media campaign was launched with a logo â€Å"Good Banking getting even better† stressing on the improvement. An on going process of Face Lifting and renovation of MCB branches was started which is still going on. The purpose of it was to ensure the overall outlook of the bank changes and employees get a better environment to work and customers of the bank feel more comfortable. NEW PRODUCTS AND SERVICES SINCE PRIVITIZATION In order to achieve long-term goals of expansion and penetration in the market. Bank introduced various new products for its customers, which cater to the needs of various segments of the society. In order to do so, a constant process of market research, evaluation and development of New products was started which resulted in introduction of various new products which were earlier not introduced by any other Bank in the country. Introduction of these products was indeed a major source of penetration for the bank and turned out to be a differential factor as compared to other banks: Prime Currency Accounts – For foreign currency deposits, (since 1991) Mahana Khushali Scheme – A monthly income plan through deposit of a fixed sum in the account, (since 1991) Hajj Mubarik Scheme – For intending Pilgrims, (since 1991) Capital Growth Certificates – It doubles the deposit of depositor in 5 years. It offers high rate of return and was introduced for fetching long-term deposit, (since 1991) PLS 365 Savings Accounts. – Introduced high earning product with feature of calculation of profit on daily product basis. No restriction on deposit withdrawals and Minimum deposit of Rs. 300,000/- (since 1992) Fund Management Scheme – To generate funds to develop secondary market for Government Securities (from 1991 to 1992) MCB Khushali Bachat Accounts – Savings accounts with added value to customers due to profit application of daily product basis. MCB Dollar Khushali Accounts – For foreign currency deposits, (launched in 1993) FAXPRESS – A fast inter-city Remittance Service, (since 1991) MCB Rupee Travelers Cheques – The most popular product of MCB, introduced Rupee Traveler cheque for the very first time in the country and it immediately fetched high share of the market and MCB share is still growing – (launched in 1993) Consultancy Services For intending buyers of State-owned enterprises being privatized, (since 1991) Self-Financing Scheme – Mark-up free finance from 5000 to 25000. (since 1991) Night Banking Services (since 1991) Utility Bills Collection Centers – Separate utility Bills collection centers were established for collection of utility bills (since 1994) MCB MasterCard – (since 1994) EXPORTMOR – Financing facility for exporter (since 1994) REMITEXPRESS – A fast remittance service between Pakistan and Middle East. (Since 1994) Personal Banking Services- In order to promote Consumer Banking system in the country a proper personal Banking service was started for High Net worth clients of Bank in selected branches (since 1995) MCB Custodian Services – Launched for local and international capital market clients. Online- The largest network of branches in the country and growing. Providing customers with 24Ãâ€"7 real time online facilities. MCB Call Center- Call now for answers to your queries-banking services, ATM services, mobile banking services, RTC services, telebanking services and MCB product information. The state of the art MCB call center is the right choice to keep you in step with your ever hectic schedule by providing you services relating to your account and Smart card at any point in time. Our well-abreast and friendly call center team is available 24 x 7, 365 days a year to ensure that your daily financial obligations are taken care of guaranteeing you a good night’s sleep. Cash Plus-Cash management services for corporate customers help customers substantially reduce their receivable collection time frame, improve cash flow and business management. Islamic banking services through exclusive units/ branches offering a range of liability and asset based sharia compliant products like musharika, murabaha, ijara and istasana. MCB Mobile banking- Banking at your figure tips. Dial in anytime to get information regarding balance and mini statements. At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them, with comfort and peace of mind. MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours – 365 days. Just call our Help Line on 111-000-MCB(622) or any MCB online branch for assistance. Mobile Banking at a Glance MCB Mobile Banking gives you easy and quick access to your account(s) at a time you find convenient, including all holidays. Banking at your Fingertips With MCB Mobile Banking you can: Check your balance View the last 4 transactions of your MCB account(s). A Free Service MCB Mobile Banking is a free service for MCB account holders who have an ATM card. All you pay for is the cost of an SMS message if charged by the service provider. MCB lockers- The best protection for your valuables. Lockers of different capacities are available nationwide. Pyara ghar- Flexible and competitive home financing facility with options of home purchase, construction and renovation. MCB car cash- Car financing and leasing at competitive rates with flexible options. Largest ATM Network- of 100 ATMs connected to worldwide ATM network of about 350,000 ATMs along with Cirrus and Maestro facility enabling MCB ATM card to be used All over the world & anywhere in the country. CUSTOMER SATISFACTION For any organization to succeed, it is extremely vital to ensure Customer Satisfaction. Banks being in service sector, it is highly important that high service standards be maintained and real value to their money is provided to its customers. In order to do so MCB took three revolutionary steps: Provision of comparatively batter service to its customers as compared to other banks through value added features of low cost, quick disposal of work and friendly environment. Modernization, Computerization of most of the branches enabled Bank stay abreast with the technology and provision of better service at the root level to its customers. Bank also started an ongoing process of Branch face lifting creating a better congenial environment for its customers. In order to be more customers' conscious, MCB started a very effective and timely action system on Customer Complaints Departments in MCB Brief functions and responsibilities of departments at MCB are as follows. Human Resources and legal group: ? Recruitment. ? Training. ? Transfer & posting. ? Promotions. ? Disputes. ? Staff loans. Banks operations group: ? Policy. ? Premises. ? Capital & operating expenses processing. ? Return & consolidation. ? Reconciliation. ? Product sales. Relationship co-ordination. ? Service standards. ? Customer complaints. Financial Institution & overseas group: ? Inter-bank exposure. ? Forex licensing. Financial control & Audit group: ? Audit & internal control. ? Budgeting & planning. ? Monitoring of expenses. ? Financial reports. Credit & risk management group: ? Credit proposal evaluation & analysis. ? Project financing. ? Monitoring of credit portfolio of bank. . Corporate banking group: ? Placement of all multi-national & public sector companies. Consumer banking group: ? Penetration in high net-worth customers. ? Earning increase. Customer retention. Commercial banking group: ? Conduction of normal retail operations. Treasury & FX group: ? Funds management. ? Investment management. Assets management group/ Fraud control group: ? Classified portfolio looks after. ? Special assets management. ? Restructuring / Rescheduling. ? Out of court settlements Information technology group: ? ATM / CIRRUS facilities. ? I. T. related franchise management. ? SWIFT system. ? On-line branches network look after. ? Hardware / software support. MCB’s Management Hierarchy Business of MCB MCB is in it’s over 50 years of operation. It has network of over 1,100 branches all over the country with business establishments in Bangladesh, Sri Lanka and Bahrain. The branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%) respectively. MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of Pakistan has restricted the number of The Consumer Banking of MCB provides customers with innovative saving schemes, products and services. The ATM network of MCB is the largest in Pakistan and the Pak Rupee Travelers Cheques are market leaders. MCB was the first to introduce the Photo Card with the launch of the MCB MasterCard. The Corporate Banking of MCB ensures assistance from a dedicated team of professional financial advisors for underwriting, project finance or corporate advisory services. When it comes to banking practices, the consumer can depend on MCB, because it'd been around for over fifty years. The State Bank of Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage that MCB capitalizes because of its extensive branch network. Eight years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multi national concerns. MCB is also catering to the growing middle class by providing new asset and liability products. The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 9 cities with around 100 ATM locations. The Bank's Rupee Traveler Cheques have been market leaders for the past six years. MCB looks with confidence at year 2002 and beyond, making strides towards fulfillment of its mission, â€Å"to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work†. Corporate Banking MCB's Corporate Banking Team consists of dedicated professionals with the requisite expertise to take care of the banking needs. The Corporate Bank with 20 branches has its presence in all major cities of Pakistan. The Area Offices are located in Karachi, Lahore and Islamabad. Corporate Platforms have been established in the three principal cities where teams of dedicated Relationship Managers have been posted. These Relationship Managers have been entrusted with the complete responsibility for managing the risk of their allocated portfolios, acting as allusion between the customer and the bank, and providing you with the entire range of products/services offered by the bank. The products/services of the Corporate Bank are broadly divided into the following categories: Working Capital Loans: The working capital loan includes Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post-shipment etc. Term Loans: Offer Short to Medium Term Finance to meet capital expenditure of the customer business needs. Trade Finance Services: Trade finances services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services. Cash Management: The network of about 1100 branches in Pakistan enables the bankers to collect and disburse payments efficiently with the MCB cash management services. This also enables. the bankers to offer the customer’s choice of paper based or electronic fund transfer solutions including collection amounts, rose branch on- line transactions etc. Investment Banking The Investment Banking Team of MCB has emerged as a leading player in Pakistan's investment banking arena. The Team handles advisory, corporate finance and capital markets related transactions. Within these areas, the investment banking team of the MCB has developed expertise in the following areas of the investment: Private Placements Debt/Equity Underwriting Term Finance Certificates Loan Syndication Arrangement of Non- Fund Facilities Mergers and Acquisitions Financial Highlights The results for the year 2001 are reflective of sustaining all-around efforts over the few years, to maintain profitable growth along with prudent and proactive risk management and expansion of product range of customers. Pre-profit for the year 2001 was Rs. 2. 0 billion as against Rs. 1. 32 billion in 2000-a healthy increase of 59%. Growth in profitability is primarily due to fund-based activities through efficient assets and liability management. Fee based income was lower despite increase in volumes due to competitive pricing and discontinuation of charges on PLS accounts. Administrative expenses grew by 3% generally attributed to absorb effect of inflation and enhancement in Govt. levies. Pr agmatic efforts are, however, under way to manage costs in relation to revenues to further improve the revenue/expense ratio. Higher level of provisions was in the line with the Bank’s policy to upfront recognize problem lending. In 2001, the Bank managed to recover Rs. 2. 19 billion as against Rs. 1. 97 billion in 2000. The balance sheet footings have increased to Rs. 187 billion from Rs. 175 billion primarily based on deposit growth. Deposits have registered a substantial increase of 14% and stand at Rs. 154. 5 billion in 2001 as against Rs. 136 billion in 2000. Despite of low PLS deposit rates, branch network has shown a commendable performance by increasing and managing the deposit mix. This has been possible by improvement in customer services and targeted sales of products like ATM cards. Net advances as at December 31, 2001 stood at Rs. 76. 6 billion, a reduction of Rs. 9. 8 billion. Demand for credit from manufacturing and export clients fell considerably, post September 11,2001, which led to a reduction in advances as on the balance sheet date from a higher level during the year. Leadership in Rupee Travelers Cheques: Sales have grown by 26% in the year 2001 and continue to reflect meteoric growth. With the extension of the generic brand, increase in the range of denomination backed by a powerful verification system and over 900 branches involved in this business. Leadership in ATM’s: With around 100 ATMs and 170 online branches, MCB is again an undoubted Indus leader with connectivity extended to 16 cities of Pakistan. In the year 2002 further ATM will be deployed and connectivity increased to other cities. MCB ATMs not only serve 24-hour cash convenience but also improve on the counter services and turn around time at cash counters. The MCB ATM Master Card with Maestro and Cirrus networks has become a global ervice furthering the convenience to our customers. Traveling customers can access their account from a large number of internationally deployed ATMs and point of Sale (POS) units. The MCB ATM Switch – MNET is now operational. IT GROUP of MCB has been able to create the largest network for secure electronic financial transactions in Pakistan. Local branches of six international banks are connecting to this network. This will enable participating banks to use each others' ATMs resulting in an increased convenience to MCB customers and customers of other banks. The IT Group is currently expanding the network capability to provide the customers access to banking through multiple electronic channels. American Express Bank enters into an ATM sharing alliance with Muslim Commercial Bank: Muslim Commercial Bank Limited and American Express Bank Ltd. signed a Memorandum Of Understanding creating a mutually beneficial alliance, which will enable customers of American Express Bank to use ATM facilities offered by Muslim Commercial Bank. Mr. Taufiq A. Hussain, Country Manager, American Express Bank Ltd. , Pakistan in a simple ceremony in Karachi, signed the MOU. MCB has setup an ATM Switch called MNET and American Express Bank is the fourth foreign bank to sign the sharing MOU. Speaking at the ceremony – AEB Country Manager said, â€Å"Customer service quality is the cornerstone of AEB's philosophy and this initiative will significantly enhance our customer service capability for our consumer banking clients†. He added â€Å"After having considered various routes to acquire this capability AEB selected MCB as an ideal partner keeping in view the large network capability and long standing relationship with MCB†. MCB with a network of over 1000 branches in the largest private sector bank of the country. The Bank is a market leader in 24 hour banking convenience with the largest nationwide ATM network covering 11 major cities in all provinces of the country. CITI bank and Muslim Commercial Bank sign ATM sharing agreement: Muslim Commercial Bank and CITI Bank signed an ATM sharing agreement today. By the middle of this year, both Banks’ customers will be able to use the services of either Bank's ATMs. Seen at the signing  ceremony are Mr. Haroon Basheer Sheikh, Head of Consumer Banking and Information Technology – MCB and Mr. Nadeem Hussain, General Manager Global Manager Global Consumer Banking – CITI Bank Pakistan with their respective team members. Standard Chartered Grindlays and Muslim Commercial Bank to launch co-branded credit card: Rated as Pakistan's best banks (‘domestic' and foreign' respectively) by Euro money magazine Muslim Commercial Bank (MCB) and Standard Chartered Grindlays signed a Memorandum of Understanding to launch the first-ever joint servicing co-branded credit card in Pakistan. Under the arrangement the partnering banks will have shared as well as distributed responsibilities to service the customers in line with their respective strength's. The Partnership will derive its strength by combining the large diversified customer base of MCB and the track record of Standard Chartered Grindlays in managing a successful credit card business in Pakistan. MCB, the largest Private Bank in Pakistan, has over four million accounts domiciled in 1100 branches across the country. Standard Chartered Grindlays, the largest foreign bank in Pakistan, has over ninety thousand satisfied card members and is a leading international player in the cards business. With this new initiative the customers product of the two leading banks in Pakistan. This agreement further strengthens the relationship between these two banks; earlier this year Standard Chartered Grindlays signed an agreement to join MCB's switch/ATM network, the largest in the country. FAYSAL BANK LIMITED to sell Muslim Commercial Bank’s Rupee traveler’s cheques: Muslim Commercial Bank Limited and Faysal Bank Limited signed an agreement for the Sale and purchase of MCB Rupee Travelers Cheques at all 11 Faysal Bank branches in Pakistan. Main categories of Account opening form: Type of Account There is a category of â€Å"Type of Account â€Å", the customer can check any option to open a certain account. Following are certain kinds of accounts: Current PLS-Saving MCB Saving-365 Khushali Bachat PLS Term Deposit New Foreign Currency Account (Current/Saving) Currency There is a category of â€Å"Currency† in the form: In this section there are four kinds of currencies are given in which MCB opens account. They are: Pakistani Rupee US dollar Nature of Account There is a category of â€Å"nature of account† i. e. Individual Partnership Sole proprietor Joint stock company Introduction Before opening an account a banker should ascertain weather or not the person desirous of opening the account is a desirable customer. There is Reference section in the form in which the person who wants to open an account must provide a reference of a person who has already an account with MCB. For current account only reference of current account holder is accepted whereas for saving account reference of any whether current or saving is allowed. Preliminary investigation is necessary because of the following reasons: ? To avoid frauds ? Safe guard against unintended overdrafts ? To avoid negligence ? To replay inquiries against clients ? To comply with Prudential Regulations/Laws There is a specimen signature card with the bank on which the signature of account holder is to be taken while opening of his account. And then he is issued with a cheque book. It is advised that one must keep his cheque book under proper care but there are cases that people sometimes lost their cheque books. In that case there is an application form in the name of manager is available and the customer who wants to get a new cheque book fills that form and gives it to the manager then he is provided with a new cheque book. In other case a requisition slip is present in the cheque book and whenever the customer wants a new cheque book he simply fills that requisition slip and presents it to manager and gets a new cheque book. Know your Customer In view of recent heightened global efforts to prevent the possible use of the banking sector for money laundering, terrorist financing, transfer of illegal/ill-gotten monies and as a conduit for white collar crime etc, the importance of â€Å"Know your Customer† has increased. The objective of knowing a customer is to have a fair idea about the identity, financial resources and general information about the customer at the time when the relationship is established. A banker must have following information about the customer: Customer’s Name: Enter complete name as mentioned in original Identity Card/other business documents. Nature of Business/Profession: If the customer is of salaried class then banker will enter his employer’s name. If the customer is a businessman, trader, sole proprietor, then the banker will enter the business name. Also enter the customer’s title/position and address of the employer/business. Addresses with P. O. Box are not acceptable. Similarly remarks like â€Å"Private Service†, â€Å"Business† are not acceptable, rather specify what type of company/business the customer is associated with. In case of individual his attested Photocopy of national identity card or passport is required, in case of salaried person, attested photocopy of his sarvice card. In case of partnership attested photocopy of identity cards of all partners is required and attested photo copy of â€Å"Partner ship Deed† along with a copy of Registration certificate with registrar of firms. In case of Company, Memorandom and Article of association, certificate of incorporation, certificate of commencement of business and attested photocopy of identity cards of all the directors is required. Address: Enter the complete residential/business address. Within the brackets you may also provide prominent address identification marks for ease of physically locating the address. Contact Number: Enter home, official, mobile, fax numbers and e-mail address (if available). Special Instructions: Clear-cut operational instructions must be obtained from the customers. If the customer has not given any special instructions in specified column, the column must be cancelled by drawing a line, as this column must not be left blank under any circumstances. The bankers considered the following points while opening the accounts: Remittances Department The next department I worked in is Remittances department. The incharge of this department, Mr. Khalid told me that there are four kinds of remittances they deal in: ? Telegraphic Transfer ? Mail transfer ? Demand Draft ? Pay order Another task of this department was to issue the traveler cheque and to give the ATM card numbers. Here is a little detail of all of these works: Telegraphic Transfer: It is a facility provided by the bank through which a customer can send or transfer any amount immediately. The procedure for the customer is simple. And more importantly the person who wants to transfer the funds may not have the account in the bank even then he can avail this facility. The procedure is like this, a customer walks in and fills an application form named as â€Å"APPLICATION FOR REMITTANCE† in which he mentions the bank to which he wants to transfer the funds also the name of the payee, his account number, also he has to mention his own address etc. then there are charges for this special facility provided by the bank and the bank receives these from the person who is sending the funds. Further there are two kinds of telegraphic transfers: Ordinary TT TT The ordinary TT reaches to its destination after two days of its dispatchment whereas simple TT reaches to its payee immediately because the payee branch is informed immediately through telephone and fax. For ordinary TT only two vouchers are prepared: Commission Voucher Postage Voucher Whereas for TT three vouchers are prepared: Commission Postage Telephone charges In the application form of TT there are two options available for the person who is sending the funds i. e whether the payees account is credited for the same amount or payee is simply to receive the payment in hand. Documents Prepared: The documents that are prepared for the TT are: TT register Remittances Confirmation of cable sent And afterwards whole of these information are recorded in a big register named as: Branch outward remittance register And after this procedure the respective branch is informed through telephone. Recommendations This whole procedure is quite lengthy and hectic. So the only recommendation that could be given is, it must be computerized Another task of the accounts department is to give the customers the ATM card number. The procedure is like this that when a customer applies for the ATM card, he is given a certain time to collect the card. On due date the customers gets his card from manager and for safety purpose the ATM number remains with the account department and the customer gets his number from there. Traveler cheque In account deptt there are two people working. One’s job is to issue the traveler cheque and the other is suppose to make the payment of TC. This work is separated for the purpose of safety and to prevent the frauds. When RTC is issued it is written in Traveler cheque register and when it is paid it is posted in MBIS. Traveler cheque register is used to maintain the stock of RTC’s. When RTC is issued HO RTC deptt. Is credited and when RTC is purchased it is debited. One of the person has the complete register of staff’s salary he maintains a staff salary register. The remittance facilities of the MCB are according to the need of the customer. Your beneficiary will receive the amount even if he/she does not have an MCB account. The Remit Express facilities the MCB can be avail in the following Bank/Companies: Demand draft Demand Draft can be explained as the instrument which is payable on demand as its name implies the same, the value of which has already been received. This instrument is issued by one branch and payable at other branch of same bank or other bank’s branch e. g. DD issued by MCB payable by ACBL. Procedure of issuance: The customer wants to make the DD fills in the same form or application i. e of remittances in which he mentions the DD, the beneficiary’s name, the place, the mode of payment i. e, whther he wants the payee to receive the cash, cheque or debit his account, signature and his name and address Check the application form. Commission is charged as per bank policy. Also excise duty & withholding tax are recovered as per applicable rates. Entry is then made in DD issued register. In the DD issued register, separate folio is allotted for each drawee branch and a serial control number is applied. The entries made is DD payable account is credited and cash is debited and when the payee receives the cash against DD, DD payable account is debited and cash is credited. Procedure of Cancellation of D. D. On receiving the application for cancellation in writing along with original DD the signature of the applicant is verified This signature should tally with the signature on DD application form. Then cancellation is marked in DD issued register and the drawee branch is Informed about cancellation. Issuance of Duplicate DD In case of Lost/Stop Payment: Application is received and signature is verified, then the drawee branch is informed about the loss of DD and further they are advised to tell the branch the status of DD i. e whether it has been paid or not. Then a duplicate of DD is issued with â€Å"Duplicate in lieu of original DD No____ dated____ reported lost† written on its face. The duplicate DD will have the same control number. PAY ORDERS: Pay order is a kind of instrument issued and paid in the same branch. It is normally issued for payment in the same city. Procedure of Issuance of Pay order: The customer fills the remittances application form and mark check on pay order. On receiving application he is issued with a pay order after receiving charges. All pay orders are crossed i. e â€Å"Payees a/c only† Procedure of Cancellation of Pay order: On receiving application for cancellation of pay order along with the pay order, it is cancelled and cancellation charges are recovered. Duplicate Pay Order: If the payment of pay order has not yet been made a duplicate copy of it can be made on receiving application from the customer. The duplicate charges are recovered from customer. Clearing Department Clearing: Clearing implies a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specified area and thereby secure payment for their clients through the clearing house at specified time in an efficient way. Clearing House: In past State bank was indulged in clearing function i. e for the settlement of mutual obligations of different commercial banks. As all banks have their accounts and keep a certain percentage of the cash deposits as a reserve with Central Bank, it become easy to set up their mutual obligations by off-setting their accounts. The claim of banks against each other is settled by simple transfers from and to their accounts. These methods of settling accounts though the central bank, apart from being convenient is economical as regards the use of cash since account are adjusted through accounts, there is usually no need for cash. At present this function of state bank is performed by NIFT. And now clearing house is a place where NIFT’s representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan and where there is no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan acts as controlling member instead of State Bank of Pakistan. Reasons of Cancellation of Membership: When a bank is no longer a scheduled bank. When any bank fails to meet its liabilities. When It is prohibited to receive fresh deposits by State Bank of Pakistan or Central Government. Advantages of Clearing: dAs clearing does not involve any cash etc and all the transaction takes place through book entries, the number of transactions can be unlimited. dNo cash is needed, as such the risks of robbery, embezzlements and pilferage are totally eliminated. dAs major payments are made through clearing, the banks came manage cash payments at the counters with a minimum amount of cash in vaults. dA lot of time, cost and labor are saved. Since it provides an extra service to the customers of banks without any service charges or costs, more and more people are inclined and attracted towards banking. Rules & Regulations of Clearing House: Timing: -Monday through Saturday 1st Clearing 10. 00 A. M. 2nd Clearing 2. 30 P. M. ? Cheques and other negotiable instruments are sent through NIFT’s representative for exchange. ? All the cheques and negotiable instruments must be properly stamped and suitably discharged ? Each and every Cheque must be accompanied by an objection memo when returned unpaid duly initialed. ? Each bank is required to maintain sufficient funds in the principal account with SBP to meet the payment obligations. The State Bank of Pakistan debits the account of each member of the clearinghouse with the proportionate working expenses incurred on the operation of clearing house. These expenses are very nominal. Functioning of Clearing House: All the scheduled banks which are the member of clearing house, must maintain accounts with SBP, by debit and credit to which the clearing settlements are made. If on a particular day, a bank delivers Cheque and other negotia ble instruments worth more than the total amount of Cheque received by it that banks account with State Bank of Pakistan will be credited with the differential amount. If on the other hand the total amount of Cheque and other negotiable instruments drawn on a certain bank by other banks is more than the total amount receivable by it from other banks, then this bank's account will be debited on that day. The Cheque delivered to the other banks through NIFT’s representatives for clearing are called outward clearing; whereas Cheque received from the representatives of other banks for payment are called inward clearing. How settlement is done in NIFT? Presume that MCB got the Cheque, which are drawn on UNION BANK, UBL and ACBL for amounts Rs. 50,000/-, Rs. 30,000/-, Rs. 5,000/- respectively, its total being Rs. 95,000/-. It means that this amount is to be credited to MCB A/c with S. B. P. On the other hand the Cheques drawn on MCB are from UNION BANK, UBL & ACBL of Rs. 15,000/- Rs. 75,000/- and Rs. 30,000/- respectively, its total being Rs. 1,20,000/-. It means that this amount is to be debited from MCB A/c. The difference between Rs. 95. 000/- credit and Rs. 120. 000/- debit is Rs. 25,000/- debit, which means the house, is against MCB for Rs. 25,000/-. If we separately show it then, MCB has to receive Rs. 50,000/- from UNION BANK and to pay Rs. 15,000/- to UNION BANK so difference is Rs. 5,000/- credit. MCB has to receive Rs. 30,000/- from UBL and to pay Rs. 75,000/- to UBL so difference is Rs. 45,000/- debit. MCB has to receive from ACBL Rs. 15,000/- and to pay Rs. 30,000/- to MCB so difference is Rs. 15,000/- debit. GRAND TOTAL: + 35,000, – 45,000, -15,000 = -25,000 i. e. Rs. 25,000/- debit. Hence MCB A/c with State Bank of Pakistan will be debited with Rs. 25,000/- and the contra will be other banks accounts respectively. This is called as â€Å"Debit and Credit Rule†. The amounts and number of instruments received are entered in the House Book from the main schedules of the respective banks. The State Bank of Pakistan maintains two major books for clearing house purpose :- HOUSE REGISTER. This book contains the information about the amounts and number of cheques received and delivered by each bank is noted down. Its columns are just like our clearing house-page. HOUSE BALANCE BOOK: This book contains the amount and number of cheques received and delivered by each bank as well as the amounts which are to be received and paid to respective banks through their accounts by State Bank of Pakistan is written down. This book has the following columns:- |Initials |To Pay Amount |No. f Cheques Received/Delivered |Name of Bank|Received Amount |To Received Amount|Initials | Both sides of this book are balanced. Vouchers are prepared from the slips received from the respective banks and the amounts are compared with this balance book. Summary of Clearing House Working: The working of clearing house may be summarized as under:- ? The instruments are delivered to the respective banks. ? The instruments drawn on our Bank are received from other banks. ? The amount and number of instruments received are entered in the House Book from the main schedules of respective banks. The amount of instruments delivered, received and the difference is written on a Figure slip provided in the clearinghouse and the slip is returned to the supervisor. ? The instruments are arranged branch-wise. ? Schedules are detached and kept safely. OUTWARD CLEARING AT THE BRANCH: The following points are to be taken into consideration white an instrument is accepted at the counter to be presented in Outward Clearing: ? The name of the branch appears on its face where it is drawn on. ? It should not be stale or post dated or without date. ? Amount in words and figures does not differ. Signature of the drawer appears on the face of instrument. ? Instrument is not mutilated. ? There should be no material alteration if so, it should be properly authenticated. ? If order instrument, suitably endo rsed and the last endorsee's account being credited. ? Endorsement is in accordance with the crossings if any. ? The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil. ? The title of account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque). If an instrument is in order then our bank's special crossing stamp is affixed across the face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on paying-in-slip and half on counterfoil). The instrument is suitably discharged, where a bearer cheque does not require any discharge and also an instrument in favor of a bank need not be discharged. The instrument along with paying-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken:- ? The particulars of the instruments and the pay-in-slips or credit vouchers are entered in the Outward Clearing Register. Serial number is given to each voucher. ? The register is balanced, the credit vouchers are separated from the instruments and are released to respective departments against acknowledgement in the register. ? The instruments are arranged bank-wise. ? The schedules are prepared in triplicate, two copies of which are attached with the relevant instruments and the third i s kept as office copy. ? The house page is prepared from schedules in triplicate. ? The Officer Incharge with branch stamp signs the schedules and house pages. ? The grand total of the house page is taken and agreed with that of the outward clearing register. The instruments along with duplicate schedules and house-page are sent to the Main Office. ? However the amount is kept in float till final status of various instruments is known from respective paying banks in second dealing. The entry of the instruments returned unpaid is made in Cheques Returned Register. If the instrument is not to be presented again in clearing then a covering memo is prepared. The covering memo along with returned instrument and objection memo is sent to the customer who deposited the same in his account. INWARD CLEARING OF THE BRANCH: The particulars of the instruments are compared with the list. The instruments are detached and sorted out department-wise. ? The entry is made in the Inward Clearing Regis ter (Serial Number, instrument number, Account number and amount of instrument is written). ? The instruments are sent to the respective departments against acknowledgement in the Inward Clearing Register. ? The instruments are scrutinized in each respect before honoring the same. OUTWARD CHEQUES RETURNED UNPAID: These are the cheques returned unpaid by us presented to us in Inward Clearing due to some objections. INWARD CHEQUES RETURNED UNPAID: These are the cheques returned unpaid to us, which were lodged by us in Outward Clearing. RETURN OF CHEQUES AFTER CLEARING HOUSE: Suppose all cheques received in the inward clearing are passed and later on it is found that a cheque should have been returned. In such cases, we contact the collecting branch and request them not to make payment against the proceeds of the cheque which was not returned unpaid by us in due time. The cheque with objection memo along with a covering letter is sent to the collecting branch, making request to issue a payment order in our favor. To balance the cash-cum-day book we may debit Suspense A/c Sundry Debtors with the approval of the manager. When the payment order is received, it is lodged in clearing and the Suspense A/c -Sundry Debtor is adjusted accordingly. SPECIAL CLEARING: In addition to the normal clearing function at Clearing House it is mutually agreed to hold an extra clearing at the Clearing House on a particular day and time, which is known, as â€Å"Special Clearing†. It is arranged due to rush of work arising out of say, m