Banking Practice & Guiding Laws Thereof on Ncc Bank

INTRODUCTION PART 1. 0 INTRODUCTION PART 1. 1 Origin of the Report This internship report entitled â€Å"Banking Practice & Guiding Laws thereof: NCC Bank Perspective. † has been started at the November 2011 under the instruction of our honorable intern supervisor & instructor Syed Shamsir Hossain. Asst. Vice President & Manager for the partial fulfillment of the requirement. 1. 2. Objectives of the report Main objective of the report is to analyze the â€Å"Banking Practice & Guiding Laws of NCC Bank Ltd. Moreover, the study also embodied the following specific objectives: 1)To study the existing operations/activities of General Banking Section 2)To study the existing operations/activities of foreign exchange section. 3)To study the existing operations/activities of loans and advance section. 1. 3 Methodology of the Study The methodological section of the study is designed as data collection: Methods of Data Collection The report was fully exploratory in nature. Data have be en collected from both primary and secondary sources.Primary sources of data †¢Face to face conversation with the bank officers & staffs. †¢Informal conversation with the clients Secondary sources of data †¢Different manuals of NCC Bank Limited †¢Different circulars of NCC Bank Limited †¢Annual report of NCC Bank Limited, (2008-09-10) †¢Prospectus of NCC Bank (2010) 1. 4 Limitation of the Report The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh specially NCC Bank. Some constraints are appended bellow: The main constraint of the study is inadequate access to information, which has hampered the scope of analysis required for the study. As it is a new bank it could not start all its operation, it was unable to provide some formatted documents data for the study. ?Every organization has their own secrecy that is not revealed to others. While collecting data i. e. int erviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization. ? Since the bank personals were very busy, they could provide me very little time. Another problem is that creates a lot of confusions regarding verification of data. In some cases more than one person were interviewed to clarify each concept as many of the bankers failed to provide clear-cut idea about the job they perform. AN OVERVIEW OF NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 0 NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 1 Introduction NCC Bank Limited is a new generation bank. It is a scheduled bank under private sector established under ambit of Bank Company Act, 1991 and incorporated as Public Limited company act, 1994 on 17th May 1993.Prior to conversion into a scheduled commercial bank; National Credit Limited (NCL) was incorporated as public limited investment company in Bangladesh on 18th November 1985. It made its journey with a modest beginning on 25th November 1985 at its registered office and first branch at 7-8 Motijheel Commercial Area, Dhaka-1000. The initial Authorized Capital of the company was 30 (Thirty) crore consisting of 30 (Thirty) lac. Ordinary share of Tk. 100/- each. A new opportunity in this field of financial activities was opened for the business.NCL made a careful journey and maintained its successive growth for few years with its qualified professional management under most unpredictable, unregulated, uncertainties and limitations. The emergence of NCC Bank Limited at the Juncture of liberalization of global economic activities, after the URUGUAY round has been an important event in the financial sector of Bangladesh. The experience of the prosperous force and the strategic operational policy is the option of the bank. The company philosophy, â€Å"A Bank with vision† has been precisely the essence of the legend of Bank’s success. . 1. 1 NCC Bank- At Present Like clothes shops, candy shops, bake shops, food shops, NCCBL is not a â€Å"debt shop† the term being used by many to call the present say banks. It is now been called a modern bank that undertakes all its operation at international standard. Having standard its operation as a commercial bank in 1993, recording from some primary difficulties, NCC bank has now emerged as a major player in the financial sector. Listed in both Dhaka and Chittagong bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk. 9 crore. Banks are the pillars of the financial system. Specially, in Bangladesh, the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial system, it is extremely important that the country’s banking systems should be in good health in the interest of investment activities, meeting the needs of all kinds of finance and related matters.Over the years, NCC bank has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in the extending the role of the private sector of the economy. The bank has a strong branch network nation wide with 32 branches. i. 2. 1. 2 Exchange: NCCBL operates foreign exchange business promptly. There 13 branch deals with foreign exchange. 2. 1. 2 Nature of the business Mission of NCC bank We shall be the forefront of national economic development by: ?Anticipating business solutions required by all our customers everywhere and innovative supplying them beyond expectation. Setting industry benchmarks of world class standard delivering customer value through our comprehensive product range, customer service and all our activities building an exciting team-based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of our business, of our customer and of national development. ?Mainta ining the highest ethical standards and a community responsibility worthy of a leading corporate citizen. ?Continuously improving productivity and profitability, and thereby enhancing shareholder value. . 1. 3 Vision To be in the front of national development by providing all the customers inspirational strength, dependable support and the most comprehensive range of business solution through our team of professional that work passionately to be outstanding in everything we do. 2. 1. 4 Goal of the Bank To share a significant portion of the banking sector’s by utilizing available manpower and also state of the art technology for maximizing the shareholders wealth. i. Long Term Goal To maximize the wealth of the shareholders. ii. Short Term GoalTo earn satisfactory rate of return on investment by providing wide range of banking service. 2. 1. 5 Board of Directors At present there are 26 members in the Board of Director. Out of 26 members 23 of them are the sponsor of the shareh older and 3 of them are publicly nominated as the equity participants from capital market have included them. However the members are obliged to maintain annul general meeting and declare the dividend payout schedule on due time. Moreover, the committee selected by shareholders represents individual body that then looks after the periodic issue with the management and tries to solve the problem. . 1. 6 Management of NCC BANK For any financial and non-financial organization, Management is the most valuable and important resources of any kind of organization. And, a well-organize management provides the organization to reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all financial and non-financial resources of an organization. Different aspects of management practice in NCC BANK planning, organizing, staffing, directing & controlling, human resources practices and recruitment finally. 2. 1. Features of NCCBL Bank is an intermediar y institute. Like other commercial bank NCCBL also has some special features. They are as follows: ii. Legal Entity: It is compulsory matter for a bank to achieve legal entity. The stronger legal entity leads to effective banking program. NCCBL has a strong legal entity. iii. Organizational Structure: NCCBL has a well-set organizational structure. Organizational structure is a precondition of effective banking activities. iv. Financial Solvency: Though NCCBL is a new bank, its ratio of liquidity is well and strong.So, the clients get greater confidence in the bank. v. Location of The Bank: Location is very useful for bank. The Head Office and the branches of NCCBL are located in the central point of the capital and the other district towns. vi. Relation with the Central Bank: As the NCCBL is the government-registered bank, so it maintains a friendly behavior with the Bangladesh Bank. vii. Security: the NCCBL is totally a secured bank. The clients of the bank get a heavy security on their deposit. viii. Management of the Bank: The executives and the officers of NCCBL are very experienced.Maximum executives are ex-government bank officers. NCC bank is a progressive commercial bank in privet sector in Bangladesh. It creates a new opportunities for its clients. It gives customized service and harmonious banker-client relationship. It contributes towards formation of national capital, growth of saving and investment in trade, commerce and industrial sectors. It provides different types of commercial banking and services to the customer of all strata in the society with in the stipulation laid down in the Bank Company Act 1991. Rules and regulations ramed by the Bangladesh bank from time to time. 2. 1. 8 Business Operation National Commerce and Credit Bank Limited emerged as bank in the country on 17th May 1993 out of a great turbulent situation encounter by set while National Credit Limited. However the institution survived the ordeals and come out as a full-fledge d commercial bank. The company raised its Authorized Capital to Tk. 750 million as per guidelines set out by the Bangladesh Bank. The paid up capital was fixed at Tk. 480. 48 million as against Tk. 429. 00 million. 2. 1. 9 Trade Finance and Correspondent BanksSuccessful companies today are fully aware that they need to be able to rely on the services of a bank that can handle international trade with a good hand. Ever since its conversion into a full –fledged bank in 1993, NCC bank has been an accomplished â€Å"Trade Finance† bank. With a highly professional team experienced and competent professionals we are able to provide a wide range of services to companies engaged in international trade. NCC Bank has also positioned itself as an established correspondent bank. Through a worldwide network of 260 correspondent banks NCC Bank is present in all key areas of the globe.Our ambit of correspondent includes top ranking international banks with a global reach. 2. 1. 10. B ranches of NCCBL NCCBL has 87 (Eighty Seven) branches all over in Bangladesh. 2. 1. 11. Performance of the Bank The bank may sustain its strong image in the mind of the customers and shareholders as a leading financial institution despite serious competition from both local and foreign banks operating in the country. Sill they are increasing their profit. Its opening profit was Tk. 624. 94 million in 2003, which were Tk. 2371. 68 million after tax in 2010. 2. 1. 12 Authorize CapitalThe authorize capital of the bank is Tk. 10,000. 00 million in the year 2010. 2. 1. 13. Paid-up Capital The bank raises its paid-up capital from Tk. 480. 48 million to Tk. 4501. 25 million for 2002 to 2010. With the increase of paid-up capital the capital based of the bank has become strong. Reserve Fund and Other Reserves The reserve fund of the bank increased of Tk. 5771. 09 million in the year 2010 as against Tk. 4371. 62 million of previous year. 2. 1. 14 Corporate Mission †¢To provide high quali ty financial services in export and import trade. †¢To provide excellent quality Customer service. To maintain Corporate and business ethics. †¢To become a trusted repository of customers' money and their financial advisor. †¢To make our stock superior and rewarding to the customers/share holders. †¢To display team spirit and professionalism. †¢To have a Sound Capital Base. 2. 1. 15 Corporate Culture This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way.They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture we bel ong has not been imposed; it has rather been achieved through our corporate conduct. 2. 1. 16 SWOT Analysis SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat.This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization. Strengths: —NCC BANK Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector. NCC BANK has provided its banking service with a top leadership and management position. — NC C BANK Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. The number of deposits and the loans and advances are also increasing rapidly. — NCC BANK has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees. NCC BANK has the reputation of being the provider of good quality services too its, potential customers. Weaknesses: —The main important thing is that the bank has no clear mission statement and strategic plan. The bank doesn’t have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan. —The bank failed to provide a strong quality-recruitm ent policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days. _The poor service quality has become a major problem for the bank. The quality of the service at NCC BANK is higher than the Dhaka Bank, NCC BANK or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank located here. —Some of the job in NCC BANK has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of NCC BANK that it is having a group of unsatisfied employees. __In terms of promotional sector, NCC BANK has to more emphasize on that. They have to follow aggressive marketing campaign. _The default risks of all term loans have to be minimized in order to sustain in the financial market. Because of default risk the organization may become bankrupt. NCC BANK has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if n ot eliminate. Opportunities: —In order to reduce the business risk, NCC BANK has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector. — The activity in the secondary financial market has direct impact on the primary financial market.Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank. —Opportunity in retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market. — A large number of private banks coming into the market in the recent time.In this competitive environment NCC BANK must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer. —In addition of those things, NCC BANK can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders.And the scheme should be separate according to the professions, such as engineers, lawyers, doctors. Threats: —All sustaining multinational banks and upcoming foreign and private banks pose significant threats to NCC BANK Limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against these local and foreign banks. —Other commercial banks are offering higher salary that may create problem for NCCBL to retain their experienced managers and executives. ? MAJOR PRODUCTS OF NCC BANK LTD. 3. 0 PRODUCTS OF NCC BANKBefore discussion about products of NCC Bank, we have to understand what bank’s products are. Bank is a service oriented industry and deals with various financial products and services for financial gains. Financial products and services products that a bank offers to its customers are mainly classified as under: a)Deposit Products to generate funds. b)Lending products for financial gains c)Money Transmission products d)International business products e)Special fee earning service3s f)social services products Products that are marketing by NCC Bank are as under 3. 1. 1.Deposit Products Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank. Accepting deposits Procedures of collecting deposit procedure are almost same in the entire bank and the b ranches as well. The deposits that are accepted by NCC BANK like other banks may be classified into: †¢Current Deposit †¢Short term deposit †¢Saving Deposit †¢Fixed deposit †¢Special Saving Scheme Deposit (SSS) 3. 1. 2. Lending Products Bank has its own principle about the credit sanctioned or loan to the ustomers, but lending product of a bank or of a branch is equal important to verify the outstanding at the end of any fiscal year. Every bank pays special attention about their lending products, because these products are handed over on a regular basis. †¢Continuous Loan a. Secured Overdraft against Financial Obligation [SOD (FO)] Advances allowed to individual/firms against financial obligation (i. e. lien of FDR/PSP/BSP/Insurance Policy etc. ) and against assignment of works order for execution of contractual works fall under this head. It is a continuous advance facility.By this agreement, the banker allows his customer to overdraft his current acco unt up to his credit limits sanctioned by the bank. The interest is charged on the amount, which he withdraws, not on the sanctioned amount. NCC BANK sanctions SOD against different security. b. Secured Overdraft against Work order/ Real Estate etc [SOD (G)] Advances allowed against assignment of work order or execution of contractual works falls under this head. This advance is generally allowed for a definite period and specific purpose i. e. it is not a continuous credit. It falls under the category â€Å"others†. c. Cash Credit (Hypothecation)Advances allowed to individual /firm for trading as well as wholesale purpose or to industries to meet up the working capital requirements against hypothecation of goods as primary security fall under this type of lending. It is a continuous credit. It is allowed under the category (i) â€Å"Commercial Lending† when the customer is other than a industry and (ii) Working Capital when the customer is an industry. d. Cash Credit (Pledge) Financial accommodations to individual / firm for trading as well as sole-sale purpose or to industries as working capital against pledge of goods as primary security fall under this head on advance.It is also a continuous credit and like the above allowed under the categories (i) â€Å"Commercial Lending† and (ii) â€Å"Working Capital†. e. Export Cash Credit (ECC) Financial accommodation allowed to a party for export of goods falls under this head and is categorized as â€Å"Export Credit,† The advances must be liquidated out of export proceeds within 180 days. †¢Demand Loan Demand Loan: (Forced LIM, BLC, PAD, IBP etc). Overdue period will be accounted from the day following the date of expiry of such loan.? Less than 6 months ? 6 months or more but less than 9 months 9 months or more but less than 12 months ?More than 12 monthsUnclassified Sub-standard Doubtful Bad/loss 1% 20% 50% 100% a. Loan General Short term, Medium term & Long term loans al lowed to individual /firm /industries for a specific purpose but for a definite period and generally repayable by installments fall under this head . this type of lending are mainly allowed to accommodate financing under the category (a) Large & Medium Scale industry and (b) Small & Cottage Industry . Very term financing for (a) Agriculture & (b) Others are also included here . b. Demand Loan Against Ship breakingThis type of loans does not exercise in this branch, but being exercised to another branch that provide advances against ship breaking. c. Payment Against Documents (PAD) Payment made the bank against lodgment of shipping documents of goods imported through L. C. falls under this head. It is an interim advance connected with import and is generally liquidated shortly against payments usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category â€Å"Commercial Lending† . d. Loan agains t Imported Merchandise (LIM)Advances allowed for retirement of shipping documents and release of goods imported through L. C. taking effective control over the goods by pledge in brokerage house under bank's lock & key fall under this type of advance. This is also a temporary advance connected with import which is known as post-import finance and falls under the category â€Å"Commercial Lending. † e, Loan against Trust Receipt (LTR) Advance allowed for retirement of shipping documents and release of goods imported through L. C. without effective control over the goods delivered to the customer falls under this head.The goods are handed over to the importer under trust with the arrangement that sale proceeds should be deposited to liquidate the advances within a given period. This is also a temporary advance connected with import and known as post-import finance and falls under the category â€Å"Commercial Lending†. g. Packing Credit Advance allowed to a party against specific L. C/firm contract for processing/ packing of goods to be exported falls under this head and is categorized as â€Å"Packing Credit. † The advances must be adjusted from proceeds of the relevant exports within 180 days. i. Foreign Documentary Bills Purchased (FDBP)Payment made to a customer through purchase/ negotiation of a foreign documentary bills falls under this head. This temporary advance is adjustable from the proceeds of the shipping/export documents. Its falls under the category â€Å"Export Credit† j. Local Documentary Bills Purchased (LDBP/IDBP) Payment made against documents representing sell of goods to local export oriented industries which are deemed as exports and which are denominated in Local currency/ foreign currency falls under this head. The bill of exchange is held as the primary security. This temporary liability is adjustable from the proceeds of the bills. . Festival Business Loan. This type of loan are generally sanctioned dependin g on the occasion, more than two festival business loans are generally sanctioned in an annum. †¢Term Loan a. Project Loan NCC BANK offers different conventional credit/investment schemes and the Banking products to their customers. So far loans and advances portfolio includes Project Finance in the form of Term Loan, Real Estate Finance, Secured Overdraft against FDR, different security certificates, working capital in the form of Cash Credit Hypothecation, Import Trade Finance in the form of PAD/LIM/TR etc.NCC BANK considers the loans, which are sanctioned for more than one year as term loan. Under this facility, an enterprise is financed from the starting to its finishing, i. e. from installation to its production b. Transportation Loan Considers the loans, which are sanctioned for the purpose of delivering the goods on to its final destination, its generally used in the form of inland exporting or back to back letter of credit. c. House Building Loan Loans allowed to indivi dual/ enterprise construction of house (residential or commercial) fall under this of advance.The amount is repayable by monthly installment within a specified period, advances are known as Loan (HBL GEN). d. Small Business Loan Short term and long term loans allowed to individual/ firms / industries for a specific purpose but a definite period and generally repayable by the installments fall under this head. These types of lending are mainly allowed to accommodate financing under the categories. Small and Cottage Industries, Very often term financing for agriculture and others are also included here. e. Consumer Finance LoanNCCBL keeping in mind the economic development and helping the fixed income group in fulfilling their demand to upgrade the standard of living will continue before consumer finance scheme for: †¢Household appliances, Furniture & Fixture, Air Conditioner, Fax Machine, motor cycle/Car, Cellular phone, and Other equipment f. Lease Finance NCCBL to keep its con tribution to the growth of national GDP, accelerate the total economic development by infusing the fund in productive sector in more efficient and effective way: diversity its portfolio and satisfy the customers need would go for lease finance for: Setting up of small and cottage industries/Projects, BMRE of existing projects †¢Transports (roads/marine), Medical equipment/surgical/clinical/lab equipment/x-ray machine etc, Construction equipment and other fixed assets of other productive and service oriented ventures. g. Personal Loan To meet emergency financial requirement especially for medical treatment/surgical operation, marriage, admission of children/ educational expenses, maternity the loan facility may be extended. 3. 1. 3. Money transmission Product Carrying cash money is troublesome and risky.That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspect s of the Commercial Banks in rendering services to its customers. †¢Payment order/security deposit receipt (PO/SDR): This term will be discussed in the overall activities section under remittance department. †¢Demand Draft (DD): This term will also been discussed in the overall activities section under remittance department. †¢Telegraphic Transfer (TT): This is also a common term that in the remittance section as well. . Travelers Cheque Traveler’s Cheque (TC)Issue of TCTC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand. Buying Of TCIf any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC. 3. 1. 4. International Business Products In banks when we talk of international business products, we refer to the general mechanism by which a bank conve rts currency of one country into that of another.Foreign Exchange Department (FED) is the international department by which a bank or an AD branch transects with other international bank or of a brach. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries by transacting their international business products. So NCC BANK, Principal branch is an authorized dealer. †¢Letter of Credit (L/C) †¢Back to back Letter of credit (BTB L/C) Buying and selling of foreign exchange †¢Foreign demand draft (FDD) Foreign Demand DraftBank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO Account. Bank also makes payment on DD drawn on this ba nk by its foreign correspondence bank through the VOSTRO Account. †¢Foreign telegraphic transfer (FTT) Outward remittance covers sales of foreign currency through issuing foreign T. T. Drafts, Travelers Check etc. as well as sell of foreign exchange underL/C and against import bills retired. 3. 1. 5. Special fee earning products NCC Bank considers the special earning product to the different consumer, as it to play a comprehensive role in financing the bank product. Among those following are some issues relate to special fee earning product: †¢Bank guarantee †¢Foreign bank Guarantee (F. B/G) †¢Underwriting †¢Brokerage House and locker Service †¢Issuances of Sanchaya Patra, Wages Earners Development Bond, National Investment Bond, Prize Bond are some special earning fee product of NCC bank. 3. 1. 6. Social Service ProductsNCC Bank Considers several service products by looking at the social point of view, At this competitive edge, banking might have reach ed to preserve its market share and to penetrate new market share through diversification of its product range. Following are the services that are designed to provide for society: †¢Sale of Lottery Tickets for collection of fund for social establishment †¢Collection of Zakat Fund †¢Collection of Haj Deposit 3. 2 CREDIT POLICY & CREDIT OPERATION OF NCCBL Credit policy is a guideline of a financial institution to determine- †¢Who shall get credit (eligibility to get loan) How much to lend (Amount of lending) †¢Why to lend (Purpose of lending) †¢Where to finance (Portfolio Management depending upon profitability and requirement for participation on socio –economic benefits) Credit division of a bank especially acts as a key financial machine to haunt for earning revenue of a bank to achie3ve its ultimate goal for profut maximization with minimal risk maintaining balanced portfolio management. 3. 3 WHERE TO FINANCE (FINANCING ACTIVITIES OF NCC BANK) Financial activities of a bank depend upon its portfolio management of its funds through deposit.Our lending policy would be within the broad policy frame work envisaged above. Bank’s lending activities may be classified into the following broad segments. 1. Trade and Commerce 2. Industries 3. Lease Financing 4. Consumer Financing 5. Real Estate & Civil Construction 6. Agro based 7. Small Business Loans 8. Personal Loans 3. 4 Security Policies The term loans, if any extended by the bank shall gave to be secured by first charge mortgage on the fixed asset coverage leaving a margin of at leas 25% depending upon the viability of the project.Consideration in this regard will vest purely on viability criteria irrespective of bank client-relationship. The determinants in this respect are debt service coverage, debt-equity ratio, and fixed coverage to term loan with a margin of 25-30% minimum. The working capital may be additionally covered by 1st charge mortgage of the fixed asset or by sharing first mortgage ranking PARIPASU with the financial institutions providing term loan. Decision is this regard shall be at the sole discretion of the bank. GENERAL BANKING OF NCC BANK LTD. 4. 0 FUNCTIONS OF NCC BANK LIMITED 4. 1 GENERAL BANKINGGeneral banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. In NCC BANK LTD Principal Branch, the following departments are under general banking section: A)Account opening section B)Deposit Section C)Cash Section B)Remittance section C)Clearing section D)Accounts section 4. 1. 1 A) ACCOUNT OPENING SECTIONAccount opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationshi p. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account. A customer can open different types of accounts through this department. Such as: 1. Current Deposit. 2. Savings account. 3. Short notice deposit (SND) >Types of Accounts with Terms and Conditions Current Deposit Current account is purely a demand deposit account.There is no restriction on withdrawing money from the account. It is basically justified when funds are to be collected and money is to be paid at frequent interval. Some important points have been discussed in the project part. Savings Bank Account This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Some Important Points have been discussed in project part. SND (Short Notice Deposit) Acco unt Normally various big companies, organizations, Government Departments keep money in STD account.Frequent withdrawal is discouraged and requires prior notice. The deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. Interest is calculated based on daily minimum product and paid two times in a year. Interest rate is 6. 00%. Table-01 > Account Opening procedure Step 1The account should be properly introduced by Any one of the following: ? An existing Current Account holder of the Bank. ?Officials of the Bank not below the rank of an Assistant officer. ?A respectable person of the locality well known to the Manager/Sub-Manager of he Branch concerned. Step 2Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened Step 3? The form is filled up by the applicant himself / herself ? Two copies of passport size photographs from individual are taken, in case of firms photographs of all partners are taken ? Applicants must submit required documents ?Application must sign specimen signature sheet and give mandate ? Introducer’s signature and accounts number – verified by legal officer Step 4Authorized Officer accepts the applicationStep 5Minimum balance is deposited – only cash is accepted Step 6Account is opened and a Cheques book and pay-in-slip book is given >Documents required for opening account ? Individual / Joint Account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Identity (copy of passport). 4. Joint Declaration Form (For joint a/c only). 5. Employee’s Certificate (in case of service holder). ? Partnership account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3.Partnership letter duly signed by all partners (Sign should be similar as stated in Partnership Deed). 4. Partnership Deed duly certified by Notary public. 5. Registration (If any). 6. Updated Trade license. ? Proprietorship account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Valid copy of Trade License. 4. Rubber stamp. 5. TIN number certificate. 6. Identity (Copy of passport). 7. Permission letter from DC/ Magistrate (in case of newspaper) ? Limited company 1. Introduction of the account. 2.Two photographs of the signatories duly attested by the Introducer. 3. Valid copy of Trade License. 4. Board resolution of opening A/C duly certified by the Chairman/Managing Director. 5. Certificate of Incorporation. 6. Certificate of Commencement (In case of Public limited company). 7. Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director. 8. List of directors along with designation & specimen signature. 9. Latest certified copy of Form – xii (to be cert ified by register of joint stock companies) (In case of Directorship change). 0. Rubber Stamp (Seal with designation of each person) 11. Certificate of registration (In case of Insurance Company – Obtained from department of Insurance from the Peoples Republic of BD). ? Club / societies account 1. Introduction of the account. 2. Two photographs of the Signatories duly attested by the introducer. 3. Board Resolution for Opening A/C duly certified by President/ Secretary. 4. List of Existing Managing Committee. 5. Registration (if any). 6. Rubber Stamp. 7. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). >Closing of an accountThe closing of an account may happen, ?If the customer is desirous to close the account, ?If the NCC BANK finds that the account is inoperative for a long duration. ?If the court of NCC BANK issues garnishee order. A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to d raw the final check for the amount standing to the credit of his/her account less the amount of closing an other incidental charge and surrender the unused check leaves. The account should be debited for the account closing charge etc. nd the authorized officer of the bank should destroy unused check. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing of an account is Tk. 50. 4. 1. 2 B) LOCAL REMITTANCE Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers. Types of remittance: ?Between banks and non banks customer Between banks in the same country ?Between banks in the different centers. ?Between banks and central bank in the same country ?Between central bank of different customers. The main instruments used by the NCC BANK of remittance of funds are ?Payment order (PO) ?Demand Draft (DD) ?Telegraphic Transfer (TT) So the basic three types of local remittances are discussed below: Table- 02 PointsPay OrderDemand DraftTT ExplanationPay Order gives the payee the right to claim payment from the issuing bankDemand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand.Issuing branch requests another branch to pay specified money to the specific payee on demand by Telegraph /Telephone Payment fromPayment from issuing branch onlyPayment from ordered branch Payment from ordered branch Generally used to Remit fund Within the clearinghouse area of issuing branch. Outside the clearinghouse area of issuing branch. Payee can also be the purchaser. Anywhere in the country Payment Process of the paying bankPayment is made through clearing 1. Confirm that the DD is not forged one. 2. Confirm with sent advice 3. Check the ‘Test Code’ 4. Make payment1.Confirm issuing branch 2. Confirm Payee A/C 3. Confirm amount 4. Make payment 5. Receive advice Charge Only commissionCommission + telex chargeCommission + Telephone Term Deposit Receipt The Local Remittance section of NCC BANK Motijheel Branch also issues TDR. They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of interest on such deposits. †¢Term Deposits: These rates are not negotiable.In this table we can find out the percentage that is given by the bank for specific period of time to the customer. 4. 1. 3 CLEARING SECTION The amount of Cheques, Pay Order (P. O), and Demand Draft (D. D) Collection from other banks on behalf of its customer is a basic function of a Clearing Department. †¢Clearing: Clearing is a sys tem by which a bank can collect customers fund from one bank to another through clearing house. †¢Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver Cheques with another banks. Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this function. †¢Member of Clearing House: NCC BANK limited is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. †¢Types of ClearingA)Outward Clearing: When the Branches of a Bank receive cheques from its customers drawn on the other Banks within the local clearing zone for collection through Clearing House, it is Outward Clearing. B)Inward Clearing: When the Ba nks receive cheque drawn on them from other Banks in the Clearing House, it is Inward Clearing. †¢Who will deposit cheque for Clearing: Only the regular customers i. e. who have Savings, Current, STD & Loan Account in the bank can deposit cheque for collection of fund through clearing house. †¢Responsibility of the concerned officer for the Clearing Cheque and being work with department, following are the issues )Crossing of the cheque. 2)(Computer) posting of the cheque. 3)Clearing seal & proper endorsement of the cheque. 4)Separation of cheque from deposit slip. 5)Sorting of cheque 1st bank wise and then on branch wise. 6)Computer print 1st branch wise & then bank wise. 7)Preparation of 1st Clearing House computer validation sheet. 8)Examine computer validation sheet with the deposit slip to justify the computer posting 9) Copy of computer posting in the floppy disk. †¢Bills Collection: In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned.Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of their customer. Types of Bills for Collection i. Outward Bills for Collection (OBC). ii. Inward Bills for Collection (IBC). What is OBC? OBC means Outward Bills for Collection . OBC exists with different branches of different banks outside the local clearinghouse. Normally two types of OBC: 1)OBC with different branches of other banks 2)OBC with different branches of the same bank Procedure of OBC: 1)Entry in the OBC register. 2)Put OBC number in the cheque. ) â€Å"Crossing seal† on the left corner of the cheque & â€Å"payees account† will be credited on realization â€Å"seal† on the back of the cheque with signature of the concerned officer. 4)Dispatch the OBC cheque with forwarding. 5)Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the cheque in the OBC file. Inward bills for collection (IBC) When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill. Procedure of IBC 1.IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register . The IBC number should put on the forwarding of the OBC with date. 2. Deposit of OBC amount: OBC cheque amount is put into the â€Å"sundry deposit-sundry Creditors account†, prepare debit & credit voucher of it. If the OBC cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount. 3. If the OBC cheque is dishonored, the concerned branch is informed about it. 4. Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch according to their information. . 1. 4 D) ACCOUNTS SECTION Accounts Department is called as the n erve Centre of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. . Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery.This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department. Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements. Workings of this department: †¢Packing of the correct vouchers according to the debit voucher and the credit voucher †¢ Recording the transactions in the cashbook. Recording the transactions in general and subsidiary ledger †¢Preparing the daily position of the branch comprising of deposit and cash †¢Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately †¢Making payment of all the expenses of the branch †¢Recording inters branch fund transfer and providing accounting treatment in this regard. †¢Preparing the monthly salary statements for the employees †¢Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R. R) †¢Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S. L. R) †¢Make charges for different types of duties †¢Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit. †¢Checking of Transaction List †¢Recording of the vouchers in the Voucher Register 4. 2 E. FOREIGN EXCHANGE Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s currency.In banks when we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries. So NCC BANK, Principal branch is an authorized dealer. There are three kinds of foreign exchange transaction:A)Import B)Export C)Remittance. 4. 2. 1 A) IMPORT To import, a person should be competent to be an importerâ€℠¢. According to Import and Export Control Act, 1950, the Office of Chief Controller of Import and Export provides the registration (IRC) to the importer. In an international business environment, buyers and sellers are generally unknown to each other. So seller of goods always seeks security for the payment of his exported goods. Bank gives export guarantee that it will pay for the goods on behalf of the buyer if the buyer does not pay. This guarantee is called Letter of Credit.Thus the contract between importer and exporter is given a legal shape by the banker by ‘Letter of Credit’. 4. 2. 1. 1>Letter of Credit †¢ Definition A letter of credit is a letter issued by a bank (know as the opening or the issuing bank) at the instance of its customer (known as the opener) addressed to a person (beneficiary) undertaking that the bills drawn by the beneficiary will be duly honored by it (opening bank) provided certain conditions mentioned in the letter gave been complied w ith. Table- 03 ImporterWho applies for L/C Issuing BankIt is the bank which opens/issues a L/C on behalf of the importer.Confirming Bank It is the bank, which adds its confirmation to the credit and it, is done at the request of issuing bank. Confirming bank may or may not be advising bank. Advising or Notifying Bank It is the bank through which the L/C is advised to the exporters. This bank is actually situated in exporter’s country. It may also assume the role of confirming and / or negotiating bank depending upon the condition of the credit. Negotiating Bank It is the bank, which negotiates the bill and pays the amount of the beneficiary. The advising bank and the negotiating bank may or may not be the same.Sometimes it can also be confirming bank. Accepting BankIt is the bank on which the bill will be drawn (as per condition of the credit). Usually it is the issuing bank. Reimbursing BankIt is the bank, which would reimburse the negotiating bank after getting payment â₠¬â€œ instructions from issuing bank. 4. 2. 1. 3 †¢ Steps for import L/C Operation – 8 steps operation Step 1 – Registration with CCI&E †¢For engaging in international trade, every trader must be first registered with the Chief Controller of Import and Export. †¢By paying specified registration fees to the CCI&E. he trader will get IRC/ERC (Import/Export Registration Certificate), to open L/C with bank, this IRC is must. Step 2 – Determination terms of credit †¢The terms of the letter of credit are depending upon the contract between the importer and exporter. The terms of the credit specify the amount of credit, name and address of the beneficiary and opener, tenor of the bill of exchange, period and mode of shipment and of destination, nature of credit, expiry date, name and number of sets of shipping documents etc. Step 3 – Proposal for Opening of L/C To have an import LC limit an importer submits an application to department to NCC BANK.The proposal contains the following particulars: †¢Full particulars of the bank account †¢Nature of business †¢Required amount of limit †¢Payment terms and conditions †¢Goods to be imported †¢Offered security †¢Repayment schedule Step 4 – Application by importer to the banker to open letter of credit †¢For opening L/C, the importer is required to fill up a prescribed application form provided by the banker along with the following documents: Table- 04 1. L/C Application form 7. Authority to debit account 2. Filled up LCA form 8. Filled up amendment request Form 3. Demand Promissory Note 9. IMP form 4. ro-forma invoice 10. Insurance cover note and money receipt. 5. Tax Identification number 11. Membership certificate 6. Import registration certificate 12. Rate fluctuation undertaking Step 5 – Opening of L/C by the bank for the opener: †¢Taking filled up application form from the importer. †¢Collects credit report of exporter from exporter’s country through his foreign correspondence there. †¢Opening bank then issues credit by air mail/TELEX/SWIFT followed by L/C advice as asked by the opener through his foreign correspondent or branch as the case may be, at the place of beneficiary.The advising bank advises the L/C to the beneficiary on his own form where it is addressed to him or merely hand over the original L/C to the beneficiary if it is so addressed. Step 6 – Shipment of goods and lodgment of documents by exporter: †¢Then exporter ships the goods to the destination of the importer country. †¢Sends the documents to the L/C opening bank through his negotiating bank. Generally the following documents are sent to the Opening Banker with L/C: Table- 05 1. Bill of Exchange 6. Packing List 2. Bill of Lading 7. Advice Details of Shipment 3. Commercial Invoice 8. Pre-shipment Inspection Certificate . Certificate of Origin 9. Vessel Particular 5. A certificate stating t hat each packet contains the description of goods over the packet. 10. Shipment Certificate Step 7 – Lodgment of Documents by the opening Bank from the negotiating bank: After receiving the documents, the opening banker scrutinizes the documents. If any discrepancy found, it informs the importer. If importer accepts the fault, then opening bankers call importer retiring the document. At this time many thing can happen. These are indicated in the following: †¢Discrepancy found but the importer accepts – no problem occurs in lodgment. Discrepancy found and importer not agreed to accept – In this case, importer protest and send back all the documents to the exporter and request his to make in the specified manner. Here banker is not bound to pay because the documents send by exporter is not in accordance with the terms of L/C. †¢Documents are OK but importer is willing to retire the documents – In this case bank is obligated to pay the price of exp orted goods. Since importer did not pay for bill of exchange, this payment by bank is one kind of credit to the importer and this credit in banking is known as PAD. Everything is O. K. but importer fails to clear goods from the port and request bank to clear – In this case banks clear the goods and takes delivery of the same by paying customs duty and sales tax etc. So, this expenditure is debited to the importer’s account and in banking it is called LIM. Step 8 – Retirement The importer receives the intimation and gives necessary instruction to the bank for retirement of the import bills or for the disposal of the shipping document to clear the imported goods from the customs authority.The importer may instruct the bank to retire the documents by debiting his account with the bank or may ask for LTR (Loan against Trust Receipt). 4. 2. 1. 4 †¢ Accounting Procedure in case of L/C Opening When the officer thinks fit the application to open a L/C, giving the f ollowing entries- creates the following charges- Table- 06 ParticularsDebit/ CreditCharges in Taka Customer’s A/CDebit L/C Margin A/CCredit Commission A/C on L/CCredit50% VATCredit15% on commission SWIFT ChargeCredit3000/= DatamaxCredit1000/= StampCredit150/= PostageCredit300/= DHL/CourierCredit1500 4. 2. 1. †¢ Amendment of L/C After opening of L/C some time’s alteration to the original terms and conditions become necessary. These amendments involve changes in a. Unit price b. Extension of validity o the L/C c. Documentary requirements etc. Such amendments can be affected only if all the concerned parties agree i. e. the beneficiary, the importer, the issuing bank and the advising bank. For any amendment the importer must request the issuing bank in writing duly supported by revised indent/ Proforma invoice. The issuing bank then advises the required amendment to the advising bank.L/C amendment commission including postage is charged to the clients A/C. 4. 2. 1. 6 >Loan against Trust Receipts (LTR) †¢ Advance against a Trust Receipt obtained from the Customers are allowed to only first class tested parties when the documents covering an import shipment or other goods pledged to the Bank as security are given without payment. However, for such advances prior permission/sanction from Head Office must be obtained. †¢ The customer holds the goods or their sale-proceeds in trust for the Bank, till such time, the loan allowed against the Trust Receipts is fully paid off. The Trust Receipt is a document that creates the Banker’s lien on the goods and practically amounts to hypothecation of the proceeds of sale in discharge of the lien. 4. 2. 1. 7>Loan Against Imported Merchandise (LIM) Advance (Loan) against the security of merchandise imported through the Bank may be allowed either on pledge or hypothecation of goods, retaining margin prescribed on their Landed Cost, depending on their categories and Credit Restriction imposed by the Bangladesh Bank. Bank shall also obtain a letter of undertaking and indemnity from the parties, before getting the goods cleared through LIM Account. 4. 2. 1. >Payment Procedure of Import Documents This is the most sensitive task of the Import Department. The officials have to be very much careful while making payment. This task constitutes the following: †¢ Date of Payment Usually payment is made within seven days after the documents have been received. If the payment is become deferred, the negotiating bank may claim interest for making delay. †¢ Preparing Sale Memo A sale memo is made at B. C rate to the customer. As the T. T & O. D rate is paid to the ID, the difference between these two rates is exchange trading. Finally, an Inter Branch Exchange Trading Credit Advice is sent to ID. Requisition for the Foreign Currency For arranging necessary fund for payment, a requisition is sent to the International Department. †¢ Transmission of Message Message is transmi tted to the correspondent bank ensuring that payment is being made. 4. 3. 2 B) EXPORT 4. 3. 2. 1>Understanding The goods and services sold by Bangladesh to foreign households, businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods.The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERC). The ERC is required to be renewed every year. The ERC number is to be incorporated on EXP forms and other documents connected with exports. 4. 3. 2. 2 The formalities and procedure of Export L/C 1. Obtaining exports LC: To get export LC for m exporter issued by the importer. . Submission of export documents: Exporter has to submit all necessary documents to the collecting bank after shipping of goods 3. Checking of export documents: After getting the documents banker used to check the documents as per LC terms 4. Negotiation of export documents: If the bank accepts the document and pays the value draft to the exporter and forward the document to issuing bank that is called a negotiating bank. If the bank does buy the LC then the bank normally acts as collecting bank. 5. Realization of proceeds: This is the period when the issuing bank has realized the payment. 6.Reporting to the Bangladesh bank: As per instruction by Bangladesh bank the bank has to report to respective department of Bangladesh bank by mentioning latest payment. 7. Issue to proceeds realization certificate (PRC): Bank has to issue proceed realization certificate of export LC to the supplier / exporter for getting cash assistance 4. 3. 2. 4>Back-To-Back L/C It is simply issued to the clients against an import L/C. Back-to-Back mechanism involves two separate L/C. One is master Export L/C and another is Back-to-Back L/C. On the strength of Master Export L/C bank issues bank to Back L/C.Back-to-Back L/C is commonly known as Buying L/C. On the contrary, Master Export L/C is known as Selling L/C. †¢ 4. 3. 2. 5 Features of Back to Back L/C †¢An Import L/C to procure goods /raw materials for further processing. †¢It is opened based on Export L/C. †¢It is a kind of Export Finance. †¢Export L/C is at Sight but back to Back L/C is at Usance. †¢No margin is required to open Back to back L/C †¢Application is registered with CCI&E †¢Applicant has bonded warehouse license. †¢L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C. †¢Usance period will be up to 180 days. The import L/C is opened for 75% of the value of Export L/C. †¢Here L/C issued agains t the lien of export L/C. †¢Arrangements are such that export L/C matures first then out of this export profit, import L/C is paid out. †¢ 3. 3. 2. 6 Documents Required for Opening a Back-to-back L/C In NCC BANK Principal Branch, following papers/ documents are required for opening a back-to-back L/C- 1. Master L/C 2. Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC) 3. L/C Application and LCAF duly filled in and signed 4. Proforma Invoice or Indent 5.Insurance Cover Note with money receipt 6. IMP Form duly signed In addition to the above documents, the followings are also required to export oriented garment industries while requesting for opening a back-to-back L/C – 1. Textile Permission 2. Valid Bonded Warehouse License 3. Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items. †¢ Payment of back to back l/c: In case back to back as 60-90-120-180 days of maturity perio d, deferred payment is made. Payment is given after realizing export proceeds from the L/C issuing bank. 4. 3. 2. >Negotiation of Export Documents Negotiation stands for payment of value to the exporter against the documents stipulated in the LC. If documents are in order, NCC BANK purchases (negotiates) the same on the basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP). If the bank is not satisfied with the documents submitted to NCC BANK gives the exporter reasonable time to remove the discrepancies or sends the documents to L/C opening bank for collection. This is known as Foreign Documentary Bill for Collection (FDBC) entered into the Foreign bill Purchased (F.B. P) register. The documents are sent to the L/C opening †¢ Presentation of export documents for negotiation/Purchase: After shipment, exporter submits the following documents to NCC BANK for negotiation. †¢Bill of exchange †¢Bill of Lading †¢Invoice †¢Insurance Policy/Certificate †¢Certificate of Origin †¢Inspection Certificate †¢Consular Invoice †¢Packing List

Area 51 Abstract

Area 51 is a very mysterious and unknown area that no one knows about. People talk about UFO, aliens, future war machines and other mystical things lurking around in area 51. My fascination with mystical creatures and flying objects really sparks my curiosity about this area resulting in me researching about area 51. Growing up all you here about area 51 is that it’s very secretive to the point the government blocks all the entrances to the area and no photos could be taken neither around it nor above it from the sky. Even our own military jets could not fly over area 51. In my research, I will be trying to understand why the government had denied its existence till the 1950’s. What really goes on in area 51? Are there really different life forms inside this area? How do one work at area 51 and how would there life change if they did. I would one day like to work for the government and work for area 51 if possible A lot of my research is done on the Internet. Area51zone. com was a website I used. The road to area 51 (http://www. latimes. com/entertainment/la-mag-april052009-backstory,0,5104077. story) was an article I read to. http://www. fas. org/irp/overhead/groom. htm also showed an image of area 51 and details. I went to the Orange County Public Library across the street from Garden Grove high school and checked out a book called Top Secret Tourism by Harry Helms.

Biology lesson 4 Exam Essay Example for Free (#4)

Biology lesson 4 Exam Essay Question 1 2 points Save Plant seed coats, mycorrhizae, and cuticles are examples of ways plants have adapted to life on land. evolutionary adaptations to limit water absorption. mechanisms to enhance carbon dioxide release. both b and c. (page 502) Question 2 2 points Save The advantages of vascular tissue over nonvascular tissue are evident in whether organisms have alternation of generations. an organism’s size and complexity. (page 504) the number of individual offspring produced by each organism. all of the above. Question 3 2 points Save The typical vascular plant sporophyte  includes the developing embryo. has roots, shoots, and meristems. has specialized tissues that develop into conducting vessels. both b and c. (page 507) Question 4 2 points Save Fruits and vegetables provide ____________ and are important sources of _____________ . nutrients; carbohydrates dietary fiber; protein protein; vitamins and minerals dietary fiber; vitamins and minerals (page 516) Question 5 2 points Save More than 70 percent of the world’s cultivated farmland is used for growing _________ rich in ____________. fruits; carbohydrates and fiber roots; starch  grains; carbohydrates and fiber (page 518) legumes; Protein Question 6 2 points Save Several nonfood uses of plants include paper, synthetic clothing, and building material. medicines, rayon, and lumber. (pages 520-523) ceramics, cabinets, and rope. violins, ivory, and rubber. Question 7 2 points Save Salicin, derived from the bark of willow trees, is the starting compound used to make paper. clothes. rubber. aspirin. (page 522) Question 8 2 points Save Medicinal uses of plants include all of the following EXCEPT cancer treatment. treatment of cardiac disorders. decongestant. Albinism treatment. (page 521) Question 9 2 points Save Two plants that are used to make BOTH paper and cloth are bamboo and flax. flax and cotton. (page 522) sisal and bamboo. rice and cotton. Question 10 2 points Save Refer to the illustration below – it shows the stem of a coleus plant. The tissue labeled A, which gives support to the vascular structures in the plant stem, is called vascular tissue. dermal tissue. epidermis. ground tissue. (pages 552-553) Question 11 2 points Save Protection, water and mineral absorption, and gas exchange are all functions of dermal tissue. (page 553)  vascular bundles. mesophyll cells. heartwood. Question 12 2 points Save The â€Å"plumbing system† that transports water and nutrients throughout a plant is called epidermis. vascular tissue. (page 554) pith. transpiration. Question 13 2 points Save The movement of water through a plant is caused, in part, by the attraction of water molecules for each other. osmosis. transpiration. (page 560) all of the above. Question 14 2 points Save The stomata are responsible for translocation. leaf growth. regulating water loss. (page 560) the transport of minerals. Question 15 2 points Save. The guard cells that surround a stoma have no walls. swell with water, causing the stoma to open. (page 561) shrivel up when opening the stoma. are responsible for translocation. Question 16 2 points Save Seed germination in a bean sprout uses a hooked shoot to protect the sprout tip from damage. (page 572) occurs after the seed coat has been damaged. is aided by a protective sheath which covers the shoot tip. only occurs after the soil has warmed to 17oC. Question 17 2 points Save Corn plants are perennial plants, storing nutrients in their roots for the next year. Must have their seeds exposed to fire before they germinate. have secondary growth that makes the stems resistant to damage. have sheaths that cover the growing shoot during germination. (page 572) Question 18 2 points Save Growth by cell division that makes both ends of a plant longer but not wider is called secondary growth. annual ring growth. vascular growth. primary growth. (page 574) Question 19 2 points Save The secondary xylem and phloem form from cork cambium. vascular cambium. apical meristems. bark. (page 574) Question 20 2 points Save. One difference between a gastrovascular cavity and a one-way digestive system is the presence or absence of cell specialization. (page 605) digestive enzymes. digestion within body cells. a moist membrane for nutrient diffusion. Question 21 2 points Save In an open circulatory system, water is drawn into the mantle cavity to provide oxygen to body tissues. lungs branch into small tubules to provide oxygen to tissues. wastes are eliminated directly to the environment from tissues. body tissues are bathed directly in fluid containing oxygen. (page 606) Question 22 2 points Save. The system that does not allow for direct contact between oxygen-carrying cells and tissues is called a one-way digestive system. the excretory system. a closed circulatory system. (page 606) an open respiratory system. Question 23 7 points Save Match the animal systems in Column I with their functions in Column II. digestive – E. break down food excretory – B. removal of waste products skeletal – C. body support and movement circulatory – D. transport nutrients and oxygen nervous – A. coordinate body activities respiratory – F. perform cellular metabolism reproductive – G. carry on the species. Biology lesson 4 Exam. (2017, May 23).

Of the People - History of the United States Assignment

Of the People - History of the United States - Assignment Example Of the People: the history of the United States describes the events of the colonial era and shades understanding of various events that culminated in the colonial era into the independence of US. It notably covers the American Revolution History among other aspects of the colonial dispensation during the reign of the British Empire. American Revolution was a consequence of a misunderstanding between the Parliament and the British legislature. These two bodies defined the war-line due to their contrasting ideology concerning taxation of the people. It was the right of the public to elect their representatives in the parliament. However, the Parliament main role was to pass bills that favored the colonialists. Britain was still in control of the parliament implying that there was no real representation of people and especially no control over the taxation control. The few elites in the parliament like George Washington disputed the ideology leading to the long-term conflict between th e parliament and colonialists. The crumble of the French Empire prior to the revolution started from within. The French holding the North American for a long time were initially engaged in war by King George. Though he never won, the war created multiple cracks in the empire that resulted to its eventual crumble. The crumble came because of massive expenditure, especially during the war. The economic destabilization eventually led to the collapse of the empire that created an opportunity to the British.

Business Strategy Report Essay Example | Topics and Well Written Essays - 2000 words - 1

Business Strategy Report - Essay Example A certain portion of their consumers are supporting the traditional marketing approach and fixed product line of the organisation. On the contrary, a range of consumers are opposing the old-fashioned marketing strategies of the organisation (Greggs Plc., 2013). The further analysis of the study will illustrate the impact of competitive environment on the growth of the organisation. It will also suggest necessary recommendation to the organisation to sustain their competitive position. Over the period of time, Greggs Plc. has encountered an increased competition in the market. Various governmental regulations are also creating a number of obstacles in the sustainability of their business venture. The analysis of external environment of the UK pie shop industry will highlight different issues that the organisation is facing. This analysis will assist the organisation to determine the current issues and obstacle in the different market environment. It will also allow them to analyse their current market position to design new competitive strategies (Nestle, 2013). The government regulations regarding the production and sales of snacks and high calorie food items are changing rapidly. The European Union government has tightened the food hygiene legislation which has affected all the businesses that are indulged in regular production, packaging and supply of food items. The Pasty Tax can also be considered as one of the major reason to worry. This system has created concern within the pie industry as it entitle the consumers to avoid the value added tax for cold and previously cooked snacks products (Darkow, Foerster and von der Gracht, 2015). The new regulations regarding the food value and hygiene parameters of the products have directed the management of Greggs Plc to reform their production and food supply procedure. The introduction of Pasty Tax has influenced the organisation to

Sayyid Qutbs Milestones Assignment Example | Topics and Well Written Essays - 500 words

Sayyid Qutbs Milestones - Assignment Example The story unfolds that faith and beliefs in adult peoples minds are predetermined while a child poises questions to these faith and beliefs. The story has two principal characters; a six-year-old boy and a man by the name Shaykh Naqib. Naqib is an adult with bizarre demeanor who walks around naked, pour dust and mud over his naked body, run through streets screaming in a shrill and terrifying voice. The adults of the village describe Naqib’s behavior as an approach to reach the sainthood after taking a particular medicine. The protagonist, then a six-year-old boy who also once took the same foul-smelling, foul-testing bitter medicine fails to understand why the same medicine turned Naqib into a fearsome wandering devil. The adult believes Naqib is favored by God because only those who are favored by the God can have the special medicine. It cleans soul, purifies spirit, and the human becomes a Magzub. Thus, Naqib is a Magzub. In Arabic, Magzub represents an individual who lives in a divine attraction. A Magzub does not adhere to social norms. Thus by walking naked and performing other bizarre things, Naqib never v iolated social norms. Naqib is a saint in adults’ minds, but for children he is a devil who can reach them with his terrible stick from any distance; then burn their backs, and break their ribs. The author in this story uses perception conflict of the same fact or phenomenon by two different generations; adults perceive through wisdom, children through instinct. Furthermore, the author in this regard does not provide an answer as to who is right and who is wrong. He leaves it under reader’s judgment; how to find the truth – through wisdom or instinct? The culmination of the story is dramatic, even revolutionary to a certain extent. Protagonist becomes sick; another woman recommends his mother to send him for a night to the Magzub.

Adminstrative Ethics Paper Essay Example | Topics and Well Written Essays - 1250 words

Adminstrative Ethics Paper - Essay Example Organizational and institutional standards are maximizing familiar location when people speak about their present health management systems. Organizational financing materials, employer employee relations and structural designs are all mentioned as areas where moral obstacles and value fights are coming high. The high tensions built by dissimilarities in organizational, personal, and expertise merits. Executives/Administrators have become demoralized with institutions that do not embody qualities stable with those by which they expect to live. As claimed by Badaraco and Webb (1995) study, most of the young administrators complained being asked to do things they particularly trust were undesired and sometimes not allowed. Well-intentioned administrators were revealed to rely on a blend of corporate credos, declaration of their own certitudes, ethics hotlines, training schedules, and ombudsmen to create to ethical levels for their companies. As an outcome of inconsistent institutional moral levels, confusing patterns arise composing the recognition of a cynical perspective of institutional or business standards by young le aders. The researchers study mentioned the importance of values tutelage and a higher knowledge of ethical resolution-making for administrators. Administrative healthcare setting, ensure an unceasing presence of moral issues embedded in each day’s performances. The administrator of the health management has authorities to self, to the business, to the client fulfilled by the group, and also to the workers who give services at the company. With the data systems development, one ethical bother that frequently presents itself to the executive is information confidentiality. Confidential data is facts that are personal, secret and very much privileged. Administrator’s private information in the health care setting goes to the extent of patient medical data to broader information operations that direct

Scar by Amy Tan Essay Example | Topics and Well Written Essays - 750 words

Scar by Amy Tan - Essay Example The author emphasizes this when she states â€Å"In those days a ghost was anything we were forbidden to talk about† (Tan 291).This is clearly illustrated in the case of An-mei’s mother, who is disowned by her family for running off to be a concubine and refusing dowry from An-mei’s father. An-mei grows up hearing her grandmother constantly talking ill of her mother and she perceives her to be a â€Å"thoughtless woman who laughed and shook her head, who dipped her chopsticks many times to eat another piece of sweet fruit, happy to be free of Popo, her unhappy husband on the wall, and her two disobedient children (Tan 292 ).† Tan’s short narrative â€Å"Scar† builds on the themes of unconditional love and respect, by using symbolism and figurative language, among other literary elements. As a child, An-mei’s mother comes to visit and a commotion arises. A giant pot of boiling broth spills and burns the little girl’s chin and neck. The boiling soup is symbolic of the family’s raging anger towards An-mei’s mother for becoming a concubine and dishonoring them. The burn results in a physical scar, hence the title of the short story. However, the term scar is also symbolic since it signifies the emotional harm suffered by the little girl, as well as, the bad memories of her mother instilled in her by the grandmother. The prevalent theme in the short story is that of unconditional love. For instance, in the course of the story An-mei’s grandmother becomes seriously sick and her young girl’s mother comes back. In spite of everything that she had been told by her grandmother and the constant absence of her mother, she grows to love her. This is evident when she says â€Å"I came to love this mother as well, not because she came to m e and begged me to forgive her† (Tan 294). An-mei recognizes the fact that her mother is not to blame entirely for her absence. She also realizes that her mother never stopped loving her even after being expelled from the community. Tan illustrates this illustration when An-mei says when â€Å"Here is how I came to love my mother, how I saw her in my own true nature, what was beneath my skin, inside my bones† (Tan 294). The narrative also elaborates on the theme of respect. This is attributable to the fact that people should respect their elders regardless of the situations they are in. This is shown by An-mei‘s depiction of respect towards her mother when she sacrifices herself to Popo even after disownment. An-mei‘s mom also shows respect to Popo by looking after her even through the last living moments of her life. Respect was an issue that affected many people in China and despite the fact that An-mei did not really know her mother; she respected her and valued her actions towards her grandmother. The author’s narrative skills once more unfold yet another theme of traditions and identity. This is clearly depicted in honoring of Popo by following the ancient and acceptable way. This is done in an effort to save Popo from dying and An-mei's mother shows the respect of traditions and identity by making a sacrifice. Despite the fact that there is no good form of communication between Popo and An-mei's mother, she does not abandon her. In contrary, she cuts off part of her flesh in attempt to enrich Popo’s soup so as to heal her (Tan 295). This theme is further elaborated when An-mei realize the real meaning of the sacrifice that is conducted by the mother. In order to fully determine one's identity and heritage, one should symbolically peel off their

Epidemiology Essay Example | Topics and Well Written Essays - 2250 words

Epidemiology - Essay Example In contrast, absolute measures, computed as a difference rather than a ratio, produce estimates with quite different interpretations. a) The type of misclassification portrayed in this case study is non- differential and random. The same misclassification occurs in the same proportion in each group. The percentage unto which the cases were underestimated is the same percentage, which the controls were over estimated. These leads to an underestimation of the true association hence the true association cannot be established. A relative risk ratio of more than one indicates that the occurrence of the event at hand is more likely to the experimental group than the control group. This misclassification reduced the relative risk ratio hence reducing the likelihood of the event occurring to the experimental group. This means underestimating the true association. b. Outcome variables of a study are measurements of population’s current status which might include mean, mode and median of continuous counts of measurements for example radio frequency exposure in megahertz, age, duration of exposure of radiation in hours and type of phone used. c. Study factors (exposures): cellular phone calls radio frequency measure by the kind of phone used, the duration of use and the ear use to receive the call. The second factor is brain tumor measured by anatomical area of the tumor. 2. a. The participation rate in this study is the percentage of the total number targeted that participated in the study =2899/3234*100=89.64%. The high participation rate is one of the characteristic of a good epidemiologic study. This implies that the results of the study are highly representative of the actual population. b. Response rate in survey research refers to the ratio of number of people who answered the survey divided by the number of people in the sample. It is usually expressed in the form of a

Debut Albums and Dear Friends Essay Example for Free

Debut Albums and Dear Friends Essay Honorable Chief Guest of the day, distinguished guests for the occasion, teachers, parents and all my dear friends, this day 15th August of every year is a golden day engraved in the history of the world. We got freedom on this date and it is a day worth a celebration. When we celebrate it hoisting the flag, playing our National Anthem with enthusiasm, distributing sweets, we need to sail back into the past to remember and pay homage to the builders of our nation. My dear friends, we were the privileged lot to have been born in free India. We were able to breathe the fresh free air since our birth. If at all we want to know the pangs of agony of being slaves under a foreign rule, we must ask our elders born before 1947. It was indeed a Himalayan task for every Indian those days to fight against those powerful giants – the British rulers. We must not allow those hard times and struggles fade away from our memories. Hence it is befitting for us to celebrate such National festivals and recall those heroic deeds of our National heroes. We remember them today. Right from Mahatma Gandhi to the local patriotic leaders we owe our gratitude. When we regard those martyrs who laid their precious lives for our sake, we must not ignore the common people who sacrificed their lot for the good cause. There were farmers, land lords, businessmen, teachers, writers, poets and students who helped the land achieve the long cherished freedom.

The Greatest Wealth Is Health

The Greatest Wealth Is Health The greatest wealth is Health. The public nowadays are more concern about their health because health can be consider as an asset for a person. A good health is foundation of better future for a person or a family. In present modern era of technology, public are more educated and knowledgeable. With the easily accessibility of information from the internet, it also helps the public to gain the extra knowledge easily. Thus, there are more aware on their personal health status compare to those days. 14th of November is the World Diabetic day that celebrates worldwide. In authors working hospital there is a plan to organize health screening for community. The purpose of organizing this Diabetic awareness campaign is to highlight the importance of education to protect future health of community and prevent the serious health consequences due to diabetes. Diabetes is a chronic disease that emerging global epidemic. The rapid increase in people with diabetes is due to increasing overeating, obesity, and physically inactivity. Diabetes can be due to the pancreas does not producing enough insulin, or the inability to use the insulin that is produced by pancreas effectively and this leads to high concentration of glucose in the blood. There are three type of diabetes. Type 1 diabetes is due to lack of insulin production and type 2 diabetes is due to body unable to produce insulin that needed effectively. Third, gestational diabetes is due to hyperglycemia that is first recognized during pregnancy in a pregnant mother who never had diabetic before. Type 2 diabetes is most common on and usually affects adults. There is a report from WHO (2006), said that type 2 diabetes in children is very rare previously, but it have increased worldwide recently for the newly diagnose cases in children and adolescents. People may live with diabetes for yea rs but diabetes is a metabolic disease that affects the multiple organs such as cardiovascular, kidney, retina and nerve damage. According to World Health Organization (WHO) 2012 statistic reported one in six adults is obese, one in ten for diabetic and one in three has high blood pressure. It was stated in New Straits Times (30 April 2012), Malaysia has one of the worlds highest number of diabetes cases among its population with 2.6 million registered patients. Lack of awareness about diabetes can lead to complication such as blindness, amputation, and kidney failure. The author as a team leader of this Diabetes Awareness campaign is responsible to identify team members to participate in the activities. As when we share a common direction or sense of community, we can get there more quickly and easily as everyone had take part and share the burden and not one-man show to complete everything. As a very familial quote that we always heard The whole is greater than sum of parts. So, effective building is very important to make this Diabetic Awareness campaign work successfully. 2. The Key Component of Effective Team Building Team building is a philosophy of job design in which employees are viewed as a team member instead of as individual worker. It is also means that the selection of a group of peoples with the mix skills that had similar interest to work together for a common objectives. Working together without bringing the personal feeling or interest into the teams, it helps to build synergy between its members. As a result, the work, at hand, gets efficiently done. A team cannot perform well when there are team members who do not focus or are serious about their responsibility of their duty, so the key component of effective team building is very important to achieve the goals and objectives that had been set. According to Rahim, Lim, Madya (2011), with the active participation of each of its member, the objectives of the group are accomplishes by the name of the great team. Besides that, the trust and support one another and respect one anothers individual from a team member also is important. Th ere are six key components of effective teams. a. Clearly state team purpose Team purpose, goals and target is very important information for the team members. Because the team members need to know what is their accomplishment in a team. The purpose, goal and target of a team can defined as the essence of the team also. The team purpose needs to include measurable goals, and the operating guideline. When the team members know the purpose, goal and target of the team clearly, it helps team member have a mindset to accomplish their task. Besides that, it also helps the team member to create a dynamic plan to fill the gaps to achieve the purpose, goal and targets of the team. According to Rhodes (2006), when the team members has a clear understanding on the team purpose and the role they play will achieve a better results. And the team highly focus team is a team which have a clear purpose, vision and clear ways of working. b. Team composition Team composition is a group of people that who will ultimate and be responsible for implementing a project. And it also involved in designing and monitoring it. Having the right team members is an essential component of all team building. Another key principle is having team members that have different skills, knowledge and experiences. Because it will generally leads to more creative and flexible in the project. Besides that, the team members can combined and share their individual knowledge on the specific issues that are needed in the project to complete the task. The purpose is to make use of the existing skills and experience to ensure the project moves forward with the best available knowledge. Every team member needs to be selected because of what it is that they are able to bring to the team. Thus, team members should be chosen based on what it is the need from them and their skills. Favoritism is not encouraged. c. Effective communication Communication is the exchange of ideas and information from one person to another that involve a speaker and a listener. It involved a sender transmitting an idea, information, or feeling to a receiver. Communication can be verbal and non-verbal and written. Verbal communication is like words, speech, chatting and so on. Nonverbal communication is like body posture, eye contact, facial expression, appearances and so on. All the team members are from different families and brought up differently. The team members have different cultures. Misunderstanding may occur. So, an effective communication is needed to reduce the misunderstanding among the team members. Another communication is written communication, is like newsletters, status reports, meetings, emails, letter, memo, forum and any other collaboration tools. This can be using to communicate among the team members and update the latest information especially if the interval between the next meeting and the present meeting too lon g. An effective and consistent communication is the most important trait of a successful team. Communication need to be clear while communicating to make sure a clear directive to team members. None of the other traits can occur without communication as information cannot be cascaded to and from the team leader and the team members. Thus, communication is very important to form an effective team. d. Active participation In an ineffective group, we will see some members do not perform fully up to expectations; some are too self-centered; some are too sensitive and temperamental; some are burned out; and some are just cannot get along with others. So, the team leader hold an important role to ensure all the team members participate and contribute to the team in achieving the goal and objective of the team. Brainstorming is usually used for solving the problem. Brainstorming is best when people feel free to present their ideas without the fear of the brunt of organizational politics or being judged, and also when there are no inhibitions. Brainstorming can be one of the most creative methods of solving any problem as it will make people think out of the box. According to a study Psychological Effects of Brainstorming by Pronin, Jacobs Wegner (2008),Velagapudi (2012) , the effects of thought speed on mood are partially rooted in the subjective experience of thought speed. This will results in joy-enhan cing effects of fast thinking. This will create a positive or conducive of environment for team members also. e. Active plan Active plan is one of the effective key components in effective team. The active plan is made and agreed upon by the team members. Hence, the team members have the same goal and same direction to accomplish the task. Besides that, it also includes feedback from the team members especially when making the team decisions. f. Ongoing assessment and evaluation This is a process that will be consistently running to assess the progress of the team. And this is to make sure the progress still within the direction of the goal. Besides that, the excellent staff will be awarded such as put in the credit in the appraisal. Certificate or souvenir can be given as a token of appreciation at the end of the project. While there is the failure during the ongoing progress, special coaching will be given to guide and to overcome the weakness. 3. The Author utilized the key components of effective team building for the Diabetic Awareness Campaign as below: a. Clear state team purpose A clear team purpose and goal need to be developed as this can work wonders for organization development. Goals and plans provide a sense of direction that focus on the specific target and direct the team members towards important outcomes. Besides that, the goal that set need to be specific, measurable, achievable, realistic, and time bound. For example, the specific goal is organize a Diabetic awareness campaign to create the awareness for the community on the diabetic health care to the hospital area. The goal is measurable as it will be held on 17th of November this year in author working hospital main lobby and the estimated participants will be 200 persons from 9a.m until 12 midday. The goal is achievable as the author and other team members will print notices and send to the residents who stay nearby to inform them about this activity. The goal is realistic as the team members have various skills and knowledge to accomplish the objective. The author and other team members will book and check all instruments a day before the exact day. b. Team composition It is important to determine the team member in the team. The selection is according to the team projects and not nepotism. Because it involves how the team members work to achieve the team goal with using their knowledge and their skills. For example, in this Diabetic Awareness campaign, author require the health educator, diabetic nurse for giving the health education, dietitian for diet advice, physiotherapist teaching the exercise, 8 staff nurses for checking the blood glucose and blood pressure. And 4 assistance nurses are needed for the taking participants abdominal girth, weight and height of the participants, 4 ward aides to usher and to register the participants. And author has 4 team members to standby and to take over the staffs when they need to have a short rest while the campaign is on. c. Effective communication Communication can be considered as a most important factor in successful teamwork. Without communication, nothing can be done. Besides that, thrust is develops through frequent and meaningful interaction and communication. According to Henmen (2011), healthy teamwork depends on the ability of the participants to give accurate feedback to each other, even when the feedback is negative. The negative feedback is like when a team member suggests buying the extra glucometer for the poor family, although the idea is good but due to the budget constraint, this will be a negative feedback. There are five tips to make the effective communication. First, during the communication, the languages that uses need to be clear and concise. Second, the information to be delivered need to be complete. To avoid missing important information all the information can be written down on the paper. Third, the communication needs to be in conversational tone because it invites interaction and if in confrontat ion tone, it invites argument. Forth, to make sure the voice and the words is clear so that messages can pass correctly. Fifth, always considerate of other team members feeling and pinpoint the issues and not the person. d. Active participation Encouraging the team members to be active in participation in discussion or brain storming is one of the team leaders tasks. As a team leader, author gives encouragement and motivation in participation of the team members. Recognition will be given to those who had outstanding performance on the task assigned. For example, give a word of well done and give recognition in front all the team members. And also will give recognition for those who have consistency on their task and have the responsibilities and commitment on the task given. Author also will give recognition for the team member who works hard to increase their performance and demonstrate progress. Because as a human being, people feel pride in their works and also care about what the superiors and peers think of their accomplishments. Author also will respects and empower the team member on their task. When the team member is empowered, they feel the ownership of the assigned task and will try their best to perform well. B esides that, it creates a greater sense of responsibility among team members. And the team members will feel enthusiastic in performing the task too. Next, is to trust the team members ability on handling the task that had assigned to them. Thrust is the strong force that binds the atoms of the team. (Preston,2005). e. Active plan During the meeting, open discussion in English or Bahasa Malaysia will be used to prevent misunderstanding. The team goal identified in the earlier part will be the priority. For example, the discussion on the goal or problems can include brainstorming for solution. The team members will understand each individual task. During discussion, the team member can have better coordination of individual skills and able to share their responsibilities also. Follow up session will be made for those who fail or have problem Sometimes, there will have some disagreement in the team because not all peoples have the same ideas and thinking. At this time, looking at the priority of the tasks and the consensus among the team member is important in making the decision of a task. Open debate will be using to rule out the pros and cons of the related issue. Besides that, democratic leadership will be used. Decision must be agreeable by the majority. As a team leader, the author will schedule meetings when everyone will attend. Besides that, author also will plan the dates of meetings and team member will be informed. The meetings will be held once a week. This is to reduce the risk of the team member not able to attend meetings. The attendance of team members is important especially while making the team decision. A mechanism also will develop to inform the meeting minutes and decisions especially for those team member that are unable to attend such as email, hard copy and so on. This is to make sure every team members has the chance in the consensus of making the decision for the team. f. Ongoing assessment and evaluation The works of the team member need to be assessed. This is to ensure team members are in the right track, not slow in progress and not meeting difficulties. The team members are also advised to give feedback on the task or difficulties they have met. Besides that, gathering the feedback is also important because the feedback may help to improve the job. If there is a failure, an audit team needs to come in to do the assessment to rule the failure. At the end of the campaign, the entire team member will need to do an evaluation for program. Author will take this opportunity to acknowledge the team member that had done well on their work. And also will discuss on the skills that could be improved. Besides that, to assess on the job satisfaction on the team members to make a plan that author could be improve in effective team building. 4. Conclusion As a conclusion, in high-performance team, the team members are co-operatives rather than competitive. The team member are supporting one another and work towards with hand in hand to reach the common goal rather than being divisive. Thus, the six key components are very essential to form effective teams and get the outcome as plan. (2802 words)