Camel Rating Of Brac Bank

Camels rating system is a common phenomenon for all banking system all over the world. It is used in all over the country in the world. It is mainly used to measure a ranking position of a bank on the basis of few criteria. Camels rating system is an international bank-rating system where bank supervisory authorities rate institutions according to six factors. The six factors are represented by the acronym CAMELS. The six factors examined are as follows: C Capital adequacy A Asset quality M Management quality E Earnings L Liquidity S Sensitivity to Market Risk Bank supervisory authorities assign a score on a scale of one (best) to five (worst) for each factor to each bank. If a bank has an average score less than two it is considered to be a highquality institution, while banks with scores greater than three are considered to be less-thansatisfactory establishments. The system helps the supervisory authority identify banks that are in need of attention. Origin of Camels Rating System: There were many banks rating system available in the world. However, Camels rating system is the most successful bank rating system in the world. The ‘Uniform Financial Institutions Rating System (UFIRS)’ was created in 1979 by the bank regulatory agencies. Under the original UFIRS a bank was assigned ratings based on performance in five areas: the adequacy of Capital, the quality of Assets, the capability of Management, the quality and level of Earnings and the adequacy of Liquidity. Bank supervisors assigned a 1 through 5 rating for each of these components and a composite rating for the bank. This 1 through 5 composite rating was known primarily by the short form CAMEL. A bank received the CAMEL rate 1 or 2 for their sound or good performance in every respect of criteria. The bank which exhibited unsafe and unsound practices or conditions, critically deficient performance received the CAMEL rate 5 and that bank was of the greatest supervisory concern. While the CAMEL rating normally bore close relation to the five component ratings, it was not the result of averaging those five grades. Supervisors consider each institution’s specific 3 situation when weighing component ratings and review all relevant factors when assigning ratings to a certain extent. The process and component and composite system exist similar for all banking companies. In 1996, the UFIRS was revised and CAMEL became CAMELS with the addition of a component grade for the Sensitivity of the bank to market risk. Sensitivity is the degree to which changes in market prices such as interest rates adversely affect a financial institution. The communication policy for bank ratings was also changed at end of 1996. Starting in 1997, the supervisors were to report the component rating to the bank. Prior to that, supervisors only reported the numeric composite rating to the bank. Six Factors of Camels Ratings System: Capital Adequacy Capital adequacy focuses on the total position of bank capital. It assures the depositors that they are protected from the potential shocks of losses that a bank incurs. Financial managers maintain company’s adequate level of capitalization by following it. It is the key parameter of maintaining adequate levels of capitalization. Asset quality determines the robustness of financial institutions against loss of value in the assets. All commercial banks show the concentration of loans and advances in total assets. The high concentration of loans and advances indicates vulnerability of assets to credit risk, especially since the portion of non-performing assets is significant. Management quality of any financial institution is evaluated in terms of Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Sensitivity to market risk. Moreover, it is also depended on compliance with set norm, planning ability; react to changing situation, technical competence, leadership and administrative quality. A Sound management is the most important pre-requisite for the strength and growth of any financial institution. Earning and profitability is the prime sources of increasing capital of any financial institution. Strong earnings and profitability profile of a bank reflect its ability to support present and future operations. Increased earning ensure adequate capital and adequate capital can absorb all loses and give shareholder adequate dividends. An adequate liquidity position refers to a situation, where an institution can obtain sufficient funds, either by increasing liabilities or by converting its assets quickly at a reasonable cost. 4 It access in terms of asset and liability management. Liquidity indicators measured as percentage of demand and time liabilities (excluding interbank items) of the banks. It means that the percentage of demand and time liabilities gets a bank as per its liquid assets. The sensitivity to market risk is evaluated from changes in market prices, notably interest rates; exchange rates, commodity prices, and equity prices adversely affect a bank’s earnings and capital. Process of Camels Reporting: The reporting process of CAMELS rating is given below: Figure : Reporting Process of CAMELS rating Process: 1. Data collection of reschedule status of overdue loans from CRM, Retail, SME and Ops. 2. Data collection of lending rates and deposit rates from Treasury. Data collection of average borrowed amount and rate of interest expenses from Treasury. 4. Data collection of maturity wise investments from Treasury. 5. Collect information of training programs arranged by the Bank’s training institute from Human Resources Division. 6. Collection of other required reports and statements from other divisions. 7. Preparation of CAMELS report as per guideline of BB Core Risk Management Guidelines. 8. Meeting arranged with MANCOM. 5 Camels Rating System of Bangladesh: All over the world, CAMELS rating is a common figure to all banking industry. Like all other countries, it is also used in Bangladesh. In Bangladesh, the five components of CAMEL have been used for evaluating the five crucial dimensions of a bank’s operations that reflect in a complete institution’s financial condition, compliance with banking regulations and statutes and overall operating soundness since the early nineties. In 2006, Bangladesh Bank has upgraded the CAMEL into CAMELS. ‘Sensitivity to market risk’ or ‘S’ is the new rating component which is included in CAMEL and make it into CAMELS. The new rating component makes the system more effective and efficient. The new system needs bank’s regular condition and performance according to predetermined stress testing on asset and liability and foreign exchange exposures, procedures, rules and criteria and on the basis of the results obtained through risk-based audits under core risk management guidelines. A bank’s single CAMELS rating has come from off-site monitoring, which uses monthly financial statement information, and an on-site examination, from which bank supervisors gather further â€Å"private information† not reflected in the financial reports. The development of credit points examination result is ranging from 0 to 100. The six key performance dimensions – capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk – are to be evaluated on a scale of 1 to 5 in ascending order. Following is a description of the graduations of rating: Rating 1 indicates strong performance: BEST rating. Rating 2 reflects satisfactory performance. Rating 3 represents performance that is flawed to some degree. Rating 4 refers to marginal performance and is significantly below average and Rating 5 is considered unsatisfactory: WORST rating. Table : Composite CAMELS and their Interpretation Rating Composite range Description Rating Analysis interpretation 1 1 to 1. 4 Strong Sound in every respect, no supervisory responses required. 2 1. 5 to 2. 4 Satisfactory Fundamentally sound with modest correctable weakness, supervisory response limited. Combination of weaknesses if not redirected will become severe. 3 2. 5 to 3. 4 Fair Watch category. Requires more than normal supervision. Immoderate weakness unless properly addressed could impair future 4 3. 5 to 4. 4 Marginal viability of the bank. Needs close supervision. High risk of failure in the near term. Under constant supervision/cease 5 4. 5 to 5 Unsatisfactory and desist order. Capital adequacy: Capital adequacy focuses on the total position of bank capital. It focuses on the risk weighted assets which proposed to protect from the potential shocks of losses that a bank might incur. It is assessed according to: the volume of risk assets, the volume of marginal and inferior assets, bank growth experience, plans, and prospects; and the strength of management in relation to all the above factors. The major financial risk like credit risk, interest rate risk and risk involved in off-balance sheet operations are absorbed by it. The CAMELS components are also required for Basel Committee of Bangladesh Bank. As regards the capital adequacy, they grouped the factors like a) size of the bank, b) volume of inferior quality assets, c) bank’s growth experience, plans and prospects, d) quality of capital, e) retained earnings, f) access to capital markets, and g) non-ledger assets and sound values not shown on books (real property at nominal values, charge-offs with firm recovery values, tax adjustments). Capital to Risk-Weighted Assets ratio (CRWA) is the most widely used indicator for capital adequacy ratio. According to Bangladesh Bank, a bank has to maintain a minimum capital adequacy ratio (CAR) of not less than 10 percent of their risk weighted assets (RWA, with at least 5 percent in core capital) or Taka 2 billion, whichever is higher. Basel II Basel II is a capital adequacy management framework for banks. Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision; adopted by Bangladesh Bank. The main objectives of Basel II are as follows: Promote safety and soundness in the financial systems Constitute a more comprehensive and more sensitive approach to addressing risks Better alignment of regulatory capital to underlying risk Encourages banks to improve risk management These guidelines are structured on following three aspects: a) Minimum capital requirements to be maintained by a bank against credit, market, and operational risks. b) Process for assessing the overall capital adequacy aligned with risk profile of a bank as well as capital growth plan. c) Framework of public disclosure on the position of a banks risk profiles, capital adequacy, and risk management system.

Three Network Topologies Essay Example | Topics and Well Written Essays - 500 words

Three Network Topologies - Essay Example Here the first topology we use for our company is BUS: The bus topology is frequently referred to as a "linear bus" for the reason that the computers are linked in a straight line. This is the easiest and mainly common technique of networking computer. By this our company’s whole computer is connected to main server so that whole data can be seen on main server.1 Next the second topology we use is STAR: In the star topology, wire sections from every computer are linked to a centralized part that is called a hub. Signals are broadcasted from the transmitting PC throughout the hub to all PCs on the network. This topology invented in the early on days of computing while computers were linked to a centralized mainframe workstation. This topology we use for the connecting the whole organization to our main server. So that any message from any PC can be deliverer to each PC on the network.2 The 3rd topology we use for our company is RING: The ring topology attaches computers on a sole circle of wire. Dissimilar the bus topology, there are no ended ends. The signals tour about the circle in one way and go by from side to side every computer, which be able to take action as a repeater to increase the signal and drive it on to the subsequently computer. The breakdown of one computer can have a crash on the whole network. This topology we use for our company to only in case of transmitting any information that we want to reach on every PC. By this information or any error report can be circulated to whole network.3 Here I will present the performance, reliability, cost and effectiveness criteria of our company for the selection of topology. We avoid using the mesh topology because it is more costly and we have lot of workstation so that we can not afford a very complex net of wires, so these only three topologies that are BUS, RING, and STAR are used by us in our company. The cost of these three for implementing point of view is less than the mesh topology.

CHICANO 310 - Summary In Your Own Words Essay Example | Topics and Well Written Essays - 250 words

CHICANO 310 - Summary In Your Own Words - Essay Example Tata Dios is a reflection of a dying person’s last wishes. The persona insists â€Å"Father God is calling me† (Caldwell p109) and needs a white dress in readiness for the heavenly journey. She has already resigned to her fate since â€Å"the doctor has far to walk† (Caldwell p109) - nothing can be done to reverse her failing health. Further, Linda Ronstadt has also used specific imagery to depict the persona’s resignation to her imminent death. â€Å"White dress† symbolizes both happiness and sadness: happiness because it reminds her of her wedding day, sadness because it is the heavenly garment of the saints, a status achieved only through death. The message in the song; therefore, revolves around the inevitability of death. In conclusion, Tata Dios is a typical Mexican song. Ity follows the Mexican traditional mariachi style which features string instrunments. The string instrunments in Tata Dios are represented by violins and the spanish guitor. Other accompaniments include flutes and trumpets. In addition, the strumming of the guitor is similar to other Mexican

Human development Essay Example | Topics and Well Written Essays - 750 words - 3

Human development - Essay Example As stated Metelev et al (2015), the focus of human development is on improving the lives of people rather than improving the economy and assuming that economic growth will automatically lead to wellbeing of the people. Human development is therefore an alternative approach that is based on social justice as an approach to determining human progress. Capabilities are central to understanding of the concept of human development. Capabilities refers to what people can do and what they can become hence are the equipment that individual has to pursue life. According to Burman (2012), access to knowledge, quality healthcare and quality standard of living are regarded as the basic capabilities that one need to be successful in life. Other capabilities that may influence individual’s wellbeing include; ability to participate in decisions that affects one’s life, freedom from violence, have fun and have control of person’s living environment. For instance providing high quality education for a girl would ensure he acquire the necessary skills to succeed in jobs, however, if that girl is denied job opportunity then her education will not be useful. Another scenario is when such girl is not provided with quality education that matches the labour market then her education will not be useful. Metelev et al (2015) outlin es three foundations for human development, access to resources and knowledge and: healthy, creative and long life. According to Bilbao-Ubillos (2013), the basic foundations mentioned above then open up other opportunities that creates favourable conditions for human development and includes: human rights and security, environmental sustainability, gender equality and participation in community and political life. Human development is also fundamental about choices because as opportunities increases, it creates various alternatives for people to choose from. According to

Books vs Films: Comparison

Books vs Films: Comparison Nowadays, most of people in the United State of America either read a book or watch a movie at their free time, for entertainment purposes. Printed books and movies have some similarities and differences. Some people argue that books are better than movies and visa versa. However, this is a controversial issue that has been discussed a lot recently. In this article, I will compare and contrast movies and printed books. I will be discussing five main points: imagination, time consumption, entertainment value, ideas and media. I chose this topic because there has been a lot of controversy regarding movies and books. Imagination plays a very important role when we speak of books and movies. Reading allows us to imagine the situation, environment, characters and their personality. Basically, movies are made from our imagination. Studies show that reading does improve a persons creativity due to imagination: because you are using your brain while reading, your concentration and focus levels improve. On the other hand, movies leave viewers with little imagination, but they focus on visual effects. Researchers from Lancaster University propose that watching fantasy movies may help enrich the creativity in children. A point that is worth noting is time consumption. A lot of people argue about this topic. Reading a book from cover to cover takes a lot of time; of course it depends on the book, the writing style and the wording. Many people enjoy reading books for leisure purposes. Veronis Suhler Stevenson (VSS), an American research company, made a survey, where it showed the estimated time spent on reading books (in a year) in the United States of America from 2002 to 2012 for those who are 18 years old and older. As you can see in the graph below, the average time spent is around 110 hours a year.    However, movies takes at most 4 hours of your time, such as the movie Lord of the Rings 3, but the average length of a movie is between 1.5 to 2 hours. A lot of people would rather watch a movie than read a book, claiming that it is not worth spending effort and time as you can watch the movie without requiring much effort from your side. Furthermore, Entertainment Value is a part of a programme whose goal is to entertain or attract the audiences attention. Books do that by enticing the reader by specific details that engage you. Some people find books more entertaining due to this reason.   Several people who both read books and watch movies claim that they were disappointed after seeing the movie as they had a higher expectations set up when they previously read the book . On the contrary, the movie experience is better shared with friends because movies are less imaginative, so it is easier to discuss the topic with your friends. A final point to share is that even though books and movies are different entities, they have some similarities. For instance: the ideas of both topics share the same main idea. Also, both books and movies are considered as sources of media, as they are both sources of knowledge and are used for entertainment purposes. However, they differ in some points. For example: Books, as we all know, tend toward focusing on details while movies cut out the over detailed parts so that the viewer doesnt feel bored while watching the movie. In addition, movies are considered as visual media while books is a typographic media. In conclusion, we cant conclude which media is better because this all depends on the individuals choice, personality and even age. Older people read books more than they watch movie, while the youth would rather watch a movie at their recreation time. Movies and Books have different ways presenting the story. However, they provide some similar prospects such as main ideas. Work Cited TIME SPENT READING BOOKS IN THE U.S. FROM 2002 TO 2012. Veronis Suhler Stevenson, n.d. Web. 6 Apr 2013. . 5 Top Tips For Why Reading Is Important! . N.p.. Web. 6 Apr 2013. . Study suggests watching fantasy movies may help enhance creativity in children. N.p., 21 Mar 2012. Web. 6 Apr 2013. . Special Economic Zones (SEZ): Features and Benefits Special Economic Zones (SEZ): Features and Benefits A Special Economic Zone (SEZ) is a geographically bound zone where the economic laws in matters related to export and import are more broadminded and liberal as compared to rest parts of the country. SEZs are projected as duty free area for the purpose of trade, operations, duty and tariffs. SEZ units are self-contained and integrated having their own infrastructure and support services. Within SEZs, a units may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc. The recent rush to set-up SEZs could fuel the economic growth and provide the cost advantage to industry in the rapidly changing global market. SEZs, being islands of opportunity, are offering business opportunity across the sectors. FDI in SEZs is set to rise rapidly once the development completes. Attractiveness of these SEZs would depend on products that have low import tariff and high volume products that have a domestic and international market. Like anywhere else in the world, the three pillars of the SEZ Act are fiscal incentives, regulatory freedom, and world-class infrastructure. History Yester years EPZs (Exporting Processing Zones) are todays SEZs. The world first known instance of SEZ have been found in an industrial park set up in Puerto Rico in 1947. In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen. Special Economic Zone (SEZs) Scheme in India was conceived by the Commerce and Industries Minister Murasoli Maran during a visit to special Economic Zones in China in 1999. The scheme was announced at the time of annual review of EXIM Policy effective from 1.4.2000. The basic idea behind establishing these zones is to reserve areas where export production could take place free from all rules and regulations governing imports and exports and to give them operational flexibility. The policy provides for setting up of SEZs in the public, private, joint sector or by State Governments. It was also envisaged that some of the existing Export Processing Zones would be converted into Special Economic Zones. Accordingly, the government has converted Export Processing Zones located at Kandla and Surat, Cochin, Santa Cruz, Falta, Madras, Vishakapatnam and Noida into Special Economic Zones. Special Economic Zones in India were established in an attempt to accelerate foreign investment and endorse exports from India and recognizing the need of a global platform to expose the domestic firms and producers to the competitive world market. The announcement of formulating a Special Economic Zones policy in India was made by the government in April 2000 and was anticipated to be an overseas province for trade purposes, commercial operations, duties and taxes. SEZs when equipped are anticipated to provide premiere infrastructure services and sustenance services, besides permitting for the tariff free import of merchandize and raw materials. Furthermore, attractive financial subsidiaries and trouble-free custom tariffs, banking and other methods are provided in such business zones. Establishing SEZs is also recognized as communications development methods. Full law and rules effected Feb 2006 Special Economic zones Act may 2005 New Policy in April 2000 Export Processing Zone(EPZ policy 1965 1st EPZ was set up in Kandla (Gujrat)) In 1990s as a part reforms powers delegated to zone authoritiesChronology of SEZ framework Objectives Generation of additional economic activity Promotion of exports of goods and services Promotion of investment from domestic and foreign sources Creation of employment Development of Infrastructural facilities. Simplified procedure for development, operation and maintaining of the special Economic Zones and for setting up units and conducting business Single window clearance for setting up of a SEZ and an unit in SEZ Single window clearance on matters relating to Central as well as State Governments. Easy and Simplifeid compliance procedures and documentations with strss on self certification. Some of the salient features of Indian Special Economic Zones: Establishment of SEZ-Indian SEZs are developed by government, private and joint sector, unlike its international counterparts where zones are chiefly maintained by their respective governments. This provides equal prospects to both Indian and global players. Government has allocated a least favorable area of 1,000 hectares for greenfield SEZs. Although, there are no limitation in context of favorable area in constructing sector specific SEZs. Foreign Direct Investment (FDI) 100% of Foreign Direct Investment is allowed for all endowments in Special Economic Zones, apart from activities cataloged under the unconstructive record like, Arms and ammunition and other items of defence Narcotic and Psychotropic substance Hazardous Chemicals Distillation and Brewing of alcoholic drinks Cigarettes and Tabacco. SEZ divisions are obligatory to be encouraging net foreign exchange yielders and are not entitle to any least amount of value addition guidelines or export responsibilities. Commodity surge from Domestic Tariff Area (DTA) into a SEZ is recognized as exports and commodity surge into DTA from SEZ are recognized as imports. Formats for SEZs in India Types of SEZ Sector Specific SEZ-units may be set up for  manufacture of one or more goods in a sector  rendering of one or more services in a sector Multi-product SEZ-units may be set up for manufacture of two or more goods in a sector or goods falling in two or more sectors trading and warehousing rendering of two or more services in a sector or services falling in two or more  sectors. Other SEZs SEZ in a port or airport SEZ for Free Trade and Warehousing Indian Special Economic Zones Organizational Set-up SEZs are controlled by a three tier Organizational Set-up described as under: Supreme controlling body in the Department is known as The Board of Approval At district level, The Unit Approval Committee tackles with SEZs development and other associated issues Every district is led by a Development Commissioner, who also controls the Unit Approval Committee. SEZ Institutional Framework Overview Indian Special Economic Zones Benefits Besides offering high end infrastructure and availability to a large skilled workforce, SEZ also offers attractive incentives and advantages to firms and developers. Benefits of Indian Special Economic Zones: Full Income tax exemption for a period of 5 years and an extra 50% tax relief for additional two years. Manufacturing industry is allowed an FDI influx of 100% via automatic channels excluding few industries. Services to establish off-shore banking divisions in SEZs Service Tax and Central Sales Tax exemption External commercial lending of upto US$500 million is allowed for SEZ divisions in a year sans any maturity limitations via certified banking networks. No import authorization obligations. Services to sustain foreign exchange proof of payments of upto 100% in Exchange Earners Foreign Currency Account. SEZ franchisees are allowed 100% FDI in offering customary telephone facilities in the areas. No limitation of foreign endowments for small scale industry reticent products. Tax relief from sectoral authorization obligations for goods reticent for SSI industry Tax relief from custom tariff on import of merchandize, raw products, spare parts etc Tax relief from Central Excise tariff on acquirement of merchandize, raw products, spare parts etc from the local market No regular assessments by Customs for export and import freight. Capacity to comprehend and repatriate export advances within a year. Revenues permitted to be repatriated sans any dividend assessment needs Authorization for Employment prospects on behalf of local exporters for direct export. Authorization for off-shoring of local and global players. This service is accessible to jewelry sector also. Major SEZ Benefits Benefits The SEZ Act also provides a number of incentives to units proposed to be set up in SEZs. SEZ units may be set up for carrying on manufacturing, trading or service activity. A unit set up in SEZ has the following facilities and incentives: 1) Land Grabbing at very low prices. 2) If SEZ built on agricultural land the farmers will loose their livelihood as they are not skilled laborers it would to tough to relocate them to other jobs. Already Farmers are having very bad days in India, one of the leading agriculture countries. 3) Since the companies that operate under SEZ enjoy a lot of tax holidays it would create a burden on the finance ministry as tax collected would be less. 4) Huge downward impact on Tax: GDP ratio the common man have to pay the price of it. 5) 15 year corporate tax holiday on export profit 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment. 6) Allowed to carry forward losses. 7) No licence required for import. 8) Duty free import/domestic procurement of goods for setting up of the SEZ units. 9) Goods imported/procured locally are duty free and could be utilised over the approval period of 5 years. 10) Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc. 11) Exemption from Central Excise duty on the procurement of capital goods, raw materials, consumable spares, etc. from the domestic market. 12) Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations. 11) Exemption from payment of Service Tax. 12) The sale of goods or merchandise that is manufactured outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports. 13) The SEZ unit is permitted to realise and repatriate to India the full export value of goods or software within a period of twelve months from the date of export. 14) Write-off of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization. 15) No routine examination by Customs officials of export and import cargo. 16) Setting up Off-shore Banking Units (OBU) allowed in SEZs. 17) OBUs allowed 100% income tax exemption on profit earned for three years and 18) 50 % for next two years. 19) Exemption from requirement of domicile in India for 12 months prior to appointment as Director. 20) Since SEZ units are considered as public utility services, no strikes would be allowed in  such companies without giving the employer 6 weeks prior notice in addition to the other  conditions mentioned in the Industrial Disputes Act, 1947. 21) The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots. 22) External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions. 23) Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration Conclusion The SEZs could drastically improve the economic activity in the country, make the countrys export competitive and globally noticeable, be net foreign exchange earner and provide immense employment opportunity. But this should not be done at the cost of bringing down the agricultural activities, Land grabbing and real estate mafia should be properly regulated so that the common man is not the net sufferer to get the net foreign exchange earner up and running. As compared to china where majority of the SEZs were setup by the government, similar should be adopted in India, if not fully it should be a public-private partnership and regulatory bodies should be properly managed to weed out fallacies. To be economically viable SEZs should be approved over a particular land area (greater than 1000 acres) for rapid economic growth in the area and for it to be profitable and self sustainable. Relaxed Tax norms, Labor laws and DTA regulations will surely attract foreign investment and major ind ustries to setup industries in the SEZs making it profitable and meeting its desired results!

Review of an Ecological Science Research Article from a Primary Scientific Source :: essays research papers

Powell, K., 2005. Fish farming, Eat your Veg, Nature, 426, 378-379.   Ã‚  Ã‚  Ã‚  Ã‚  The article that I chose to review discussed the possibility of maintaining and sustaining aquaculture by changing the diets of the farmed fish. The idea of carnivorous fish turning into vegetarians would help for future sustentation of aquaculture. There were pros and cons to either side of vegetarianism and the maintaining of carnivores. There are issues that would require research and analysis to which the author points out to the reader.   Ã‚  Ã‚  Ã‚  Ã‚  Aquaculture has increased by 5% over the past 10 years. The wild stock of fish that is caught to feed the fish farms has numbered 11 million tons, which is 12 % of the total fish hauled from the sea each year. Carp and tilapia are the most farmed fish in the industry that already are consisting of a vegetarian type diet. Salmon and trout are the next largest farmed fish. The difference is that the salmon and trout are carnivores. The author reports that the carnivorous fish are more expensive to cultivate and more resources are needed to maintain these types of farmed fish.   Ã‚  Ã‚  Ã‚  Ã‚  Most farmed fish are fed on a diet that consists greatly of fish oil and fishmeal. Fishmeal is made from a protein rich powder of ground up cheap fish as a source of nutrients and proteins. The problem with using these within the farm diet is that the demand for the fish oil will overpower the supply as aquaculture expands and booms. The author states that the â€Å"demand will outstrip supply of oil by 2010.† (Powell).   Ã‚  Ã‚  Ã‚  Ã‚  Feed companies which supply the fish farms with fishmeal and fish oil as a staple to the diet of the carnivorous fish will seek different sources of protein. This protein could possibly come from larger fish such as mackerel, herring, and blue whiting. If this happens it would put more pressure on the natural stock already being harvested for other purposes. Some companies are traveling to the Antarctic to collect krill, which has repercussions for the bottom of the food chain in that the ocean itself is a primordial web of life.   Ã‚  Ã‚  Ã‚  Ã‚  The author boosts that the fish will be able to eat Soya beans, corn, rapeseed, sunflower seeds, flaxseeds, and wheat gluten if converted to a vegetarian diet. The author also reports that some salmon farms already use these foods as staples in their fish farm diets.

Case Study Report: Odi

Case Study Report: Optical Distortion, Inc. (A) For the three types of chicken farms, the appealing and unappealing characteristics of using ODI contact lens are presented as below. When it comes to appealing characteristics, the three types of chicken farms are the same: less cannibalism, less feed cost, and less the temporary weight loss and the retardation of egg production. From the perspective of cannibalism, which is originally 25% showed in experience, flock mortality is reduced to an average of 4. 5% when ODI lens are used .On the contrary, the debeaking makes the mortality for cannibalism from 25% to only 9% , which is higher than contact lenses used. In other words, farmers can save more 4. 5% (9% minus 4. 5%) chickens in their farm. On the other words, farmers can save $2. 40(price of per hen)*4. 5%*the number of chickens in the farm. From the perspective of less feed cost, the debeaking chicken only can eat the feed in the trough at least 3/8† deep, while the ODI le ns used chicken only can eat the feed in the trough below 3/8†deep.At $158 per ton for chicken feed, this would represent considerable annual savings, especially for large farms. From the perspective of less the temporary weight loss and the retardation of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs. When it comes to unappealing characteristics, the details are as below. Farm Types| Unappealing Characteristics|Small Farms| Labor cost| Lens cost| The number of birds are too small to use the new technology| Medium Farms| Yearly cash flow is only $375,000| The melting point of the hydrophilic polymer is very close to the sterilization temperature| Not reused and the lens cost| Large Farms| Not reused| Lens cost| The melting point of the hydrophilic polymer is very close to the sterilization temperature| As regards geographic areas, ODI should focus its efforts on California. Given the density of large farms n California (flock size of 50,000 or greater), it seems prudent not only to perform the initial product introduction there but to focus the entire first year of business in this single West Coast state. The first year’s planned production volume is approximately 20 million, essentially the same as California’s chicken population. Success in this region could later force farms in other states to implement the lens simply as a means of staying competitive. As regards target segment, it would seem that the focus should be initially on farms with a flock size of 50,000 and over, which means the large farms.Since this would limit the overhead (fixed costs) needed to service these accounts (fewer sales and technical experts required). Also, by focusing on large farms, the sales team could interface with the farms directly, and there would be no need for a â€Å"middle man† to be involved in product distribution. Avoiding this intermediary would help keep costs down. For ODI, pricing con siderations for a pair of lenses are as below. Item| Fixed Cost| Advertising in Trade Publications| $100,000| Headquarters Expenses| $184,000(for volume of 20 million pair)| Regional Office and Warehouse| $196,000|Costs of Molds| $12,000 x 3 = $36,000 (3 molds are needed to produce 21,600,000 pair annually)| Licensing Agreement with New World Plastics| $25,000 (per year, must be paid for first and second year of production)| Item| Variable Cost| per pair of lenses| $0. 032| ODI Cost(per year): TC=FC+MC TOTAL COST=[($100,000 + $184,000 + $196,000 + $36,000 + $25,000)/(50% of 475600000)]+0. 032=$0. 055 (5. 5 cent) per pair Farmers Saving when using ODI lens(per year): Item| Saving| Less Mortality| $2. 40*(9%-4. 5%)=0. 108| Less retardation of egg production| 0. 3/12=0. 044| Less feed cost| (0. 2446-0. 2368)*3/8*($158/2000)*365=0. 084| TOTAL SAVING=$0. 108+$0. 044+$0. 084=$0. 236(23. 6cent) The minimum price that ODI considered is 8 cent per pair, so the price stage is from 8 cent to 2 3. 6 cent, and the ODI should adopt the price policy on entry which is set the price near 23. 6 cent per pair. For the realistic goal for ODI by 1978 is the 50 percent penetration of such farms, when means ODI wants to reach the 50 percent of 470. 8 million pairs, that is, 235. 4 million pairs of lens be sold and used in the farms. Case Study Report: Odi Case Study Report: Optical Distortion, Inc. (A) For the three types of chicken farms, the appealing and unappealing characteristics of using ODI contact lens are presented as below. When it comes to appealing characteristics, the three types of chicken farms are the same: less cannibalism, less feed cost, and less the temporary weight loss and the retardation of egg production. From the perspective of cannibalism, which is originally 25% showed in experience, flock mortality is reduced to an average of 4. 5% when ODI lens are used .On the contrary, the debeaking makes the mortality for cannibalism from 25% to only 9% , which is higher than contact lenses used. In other words, farmers can save more 4. 5% (9% minus 4. 5%) chickens in their farm. On the other words, farmers can save $2. 40(price of per hen)*4. 5%*the number of chickens in the farm. From the perspective of less feed cost, the debeaking chicken only can eat the feed in the trough at least 3/8† deep, while the ODI le ns used chicken only can eat the feed in the trough below 3/8†deep.At $158 per ton for chicken feed, this would represent considerable annual savings, especially for large farms. From the perspective of less the temporary weight loss and the retardation of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs. When it comes to unappealing characteristics, the details are as below. Farm Types| Unappealing Characteristics|Small Farms| Labor cost| Lens cost| The number of birds are too small to use the new technology| Medium Farms| Yearly cash flow is only $375,000| The melting point of the hydrophilic polymer is very close to the sterilization temperature| Not reused and the lens cost| Large Farms| Not reused| Lens cost| The melting point of the hydrophilic polymer is very close to the sterilization temperature| As regards geographic areas, ODI should focus its efforts on California. Given the density of large farms n California (flock size of 50,000 or greater), it seems prudent not only to perform the initial product introduction there but to focus the entire first year of business in this single West Coast state. The first year’s planned production volume is approximately 20 million, essentially the same as California’s chicken population. Success in this region could later force farms in other states to implement the lens simply as a means of staying competitive. As regards target segment, it would seem that the focus should be initially on farms with a flock size of 50,000 and over, which means the large farms.Since this would limit the overhead (fixed costs) needed to service these accounts (fewer sales and technical experts required). Also, by focusing on large farms, the sales team could interface with the farms directly, and there would be no need for a â€Å"middle man† to be involved in product distribution. Avoiding this intermediary would help keep costs down. For ODI, pricing con siderations for a pair of lenses are as below. Item| Fixed Cost| Advertising in Trade Publications| $100,000| Headquarters Expenses| $184,000(for volume of 20 million pair)| Regional Office and Warehouse| $196,000|Costs of Molds| $12,000 x 3 = $36,000 (3 molds are needed to produce 21,600,000 pair annually)| Licensing Agreement with New World Plastics| $25,000 (per year, must be paid for first and second year of production)| Item| Variable Cost| per pair of lenses| $0. 032| ODI Cost(per year): TC=FC+MC TOTAL COST=[($100,000 + $184,000 + $196,000 + $36,000 + $25,000)/(50% of 475600000)]+0. 032=$0. 055 (5. 5 cent) per pair Farmers Saving when using ODI lens(per year): Item| Saving| Less Mortality| $2. 40*(9%-4. 5%)=0. 108| Less retardation of egg production| 0. 3/12=0. 044| Less feed cost| (0. 2446-0. 2368)*3/8*($158/2000)*365=0. 084| TOTAL SAVING=$0. 108+$0. 044+$0. 084=$0. 236(23. 6cent) The minimum price that ODI considered is 8 cent per pair, so the price stage is from 8 cent to 2 3. 6 cent, and the ODI should adopt the price policy on entry which is set the price near 23. 6 cent per pair. For the realistic goal for ODI by 1978 is the 50 percent penetration of such farms, when means ODI wants to reach the 50 percent of 470. 8 million pairs, that is, 235. 4 million pairs of lens be sold and used in the farms.