Extensive Reading for Efl Learners: a Library Research Essay

Abstract Most of EFL learners do not like reading and they rarely read. It is because some factors such as difficult reading material, uninteresting material and low motivation to read. However, reading skill is important skill to improve learners’ ability in learning a language. From reading, the learners will get much exposure to the language. Therefore, the teachers should introduce a good reading approach for the learners to help them in reading. Extensive reading is one approach which gives the learners an opportunity to get contact with the target language. Extensive reading will motivate learners to read and also learn English. Therefore, it will also enhance the learners’ vocabulary and improve the learners’ language proficiency. Keywords: EFL, Extensive reading, learner. Introduction Reading is one of basic skills which is learnt in English as Foreign Language (EFL) besides listening, writing and speaking. Reading will influence learners’ success in the learning process. Without having a good reading ability, learners will have problems in getting any information from reading sources such as book, newspaper, or journal. As stated by Richard Anderson and the Commission on Reading â€Å"reading as the process of constructing meaning from written texts†. Reading is one way to get information from the source that was written. However, reading is not an easy skill to be learnt. There are some factors that influence the result of the reading activity such as the type of reading, environment, and reading material. In most EFL classes, the focus of the reading skill is on the study of vocabulary and grammar, which is known as intensive reading. That kind of language lesson is not reading at all (Alderson and Urquhart, 1984; Robb and Susser, 1989 in Sheu, 20 03). Moreover, the reading itself should be more than studying the vocabulary and the grammar. The most important of reading is to understand the information in the text, in the other words the focus of the reading is in the reading comprehension. It makes the learners have little time for reading practice in their learning process. As the result, they are maintaining their ability which can help them to read extensively and understand the content of the text latter. Some researchers have introduced some approaches which can help the learners to develop their reading comprehension. One of the approaches is extensive reading. Extensive reading is contrasted with the intensive reading which is slow reading and careful reading which will take much time. According to Sheu (2003) â€Å"an extensive reading (ER) approach appears to be most appropriate option for improving learners’ language proficiency and reading ability†. This kind of reading approach can help the learners to maintain their reading skill and reading ability, because they do not need to know the meaning of every word in the text. It concerns more in the context meaning which help the learners to reduce the time spent for reading. This article will show some reasons why the teacher should use extensive reading (ER) in teaching EFL. Definition of Extensive reading Extensive reading is an approach to language learning, including foreign language learning, by the means of a large amount of reading. The learners’ view and review of unknown words in specific context will allow them to infer the word’s meaning, and thus to learn unknown words (Wikipedia.org). Extensive reading is a kind of reading that ask the learners to read large amount of books which are relative easy and understandable for the learners. It also means reading for pleasure, because the learner read what they want to read or their favourite books. The aim of this approach is to develop the learners’ reading interest and to give them more opportunities to get a large contact with the foreign language in order to master it. Extensive reading will help the learners to understand the meaning of a text or to get the information in the text as quickly as possible. Moreover, reading is one way to get a large contact with the foreign language. However, the learners have limited time in the class to get large amount of reading practice. Therefore, they need to have their own reading practice outside the class. The reading source should be understandable and also should fit with their current level of language comprehension. Therefore, in this approach, the learners are given a freedom to choose and read their favourite books or anything that they want to read. As stated by Nancy (2000) by reading many books that fit in with their language level and also understandable for them, there will be some changes occur in the learner, such as: a.Learners become able to visually and mentally process written English in a smoother, more natural way, rather than in a halting process of translating. Because the readers progress smoothly and comprehendingly through short and easy books, they are able to understand the overall flow of stories and organization of nonfiction texts. b.The foundation of English vocabulary and grammar become better established and remembered by being processed in the mind dozens or hundreds of times in natural, comprehensible contexts. c.Many of the variations of high frequency vocabulary and grammar elements that are too numerous to learn explicitly, can be learned incidentally by reading texts composed exclusively of this high frequency lexical and grammatical core. d.Learners feel satisfied and enjoy a sense of accomplishment from reading many books on their own. This increases their confidence and autonomy. e.Learners who have experienced successful English reading on their own are more appropriate to develop a reading habit. They are more likely to read outside of their courses and after their formal education ends. The characteristics of Extensive Reading 1.Reading Material In this reading approach, the teacher need to provide the learners with large amount of books which are appropriate with the language level of the learners and also the books which the students may interested in. It will be better if the books are kept in the classroom because it will give the learners an opportunity to read in their leisure time and also give them the opportunity to borrow the book. It will also help the teacher to direct the learners to read. 2.Students choice In extensive reading approach, the learners are given freedom to choose the books that they want to read based on their interest. If the learners find difficulties in reading that books, they can return the book and choose other books. 3.Reading for pleasure and information Usually learners do not like to read. They feel frustrated to understand the reading text which is too far from their language level, because they are asked to understand the whole words in that text. It will make them do not want to try to read. In the extensive reading, the learners are asked to understand the text without forcing them to understand every single word in the text. This approach will maintain the learners’ interest in reading. 4.Extensive reading out of class In extensive reading, the teacher can persuade the learners to read a lot even outside the classroom. As stated before, when the books are kept in the classroom, it will encourage the learners to borrow books and take it home, it will help to maintain learners’ reading ability. 5.Language level The level of vocabulary and grammar in the books that the learners read should not pose difficulty. It is because the purpose of the extensive reading approach is motivating the learner to read and also encouraging the learner’s reading fluency. However, the books should not too easy, because it will lead the learners’ feeling that they get nothing from reading that kind of books. 6.Use of dictionary Reading becomes a boring activity for the learners because they need to stop their reading to look up every word that they do not understand in the dictionary. Therefore, the use of the dictionary in this kind of reading should be avoided when their reading flow. They can write or take note for some difficult words and can look them up after they have finished their reading. 7.The teacher role in Extensive Reading In the extensive reading, the teachers’ roles are to encourage, to motivate, and to help the learners with their reading. The teachers can involve their individual counseling in the learning process. This situation gives the teachers an opportunity to ask learners’ reading experiences and also ask learners’ problems in reading during or after class time by checking and commenting on written summaries that learners do of their reading (Susser and Robb, 1989). By making summaries, the learners are given opportunities to demonstrate what they get from reading and allow the teacher to check their understanding to the texts or books that they have read. The teachers’ role is also as a model for the learners. When the teachers are also seen to be a reader by the learners, it will encourage them to read. The teachers can talk in class about the books that they have been read. If the teachers are knowledgeable about the books in the class library and having them r ead, they can give recommendations to learners about what to read. The teachers can also read aloud to the learners, as a way of introducing students to different genres or individual books. Benefits of using Extensive reading technique for EFL students Many researchers have been held some research to know the benefit of using Extensive reading technique (ER) and also to demonstrate the effectiveness of ER to support the development of language acquisition for the learners. First, extensive reading can improve learners’ motivation in learning English. One characteristic of extensive reading is that the learners can choose books or articles in which they are interested because learners have their right to choose books or articles that they like to read. According to some result of experiment by Shang, Briody and Lin (2006), the learners prefer reading articles or books which they are interested in, rather than reading textbooks. Therefore, learners have more motivation to read English materials. Second, extensive reading can enhance learners’ vocabulary. In the process of extensive reading, the learners can read some words which show up frequently in the articles or books. When the learners read more and more, they will become familiar with the words that they usually read. They can understand those words and memorize them easier. In addition, learners have greater motivation to learn some special or interesting words through reading. Consequently, extensive reading can enhance learners’ vocabulary, these findings fit into the literature (Lai, 1993). Third, extensive reading can improve learners’ reading comprehension. Learners can comprehend more extensive vocabularies, build their reading ability, and access to background information through extensive reading. When learners read more, their vocabularies could be developed. Once the learners’ ability in vocabulary has been developed, it will be easier for them to get and understand the main idea from articles and other texts. Fourth, extensive reading can improve learners’ overall language proficiency. It does not only improve their reading skills but also improve learners’ skills in listening and also speaking as reported by Cho and Krashen (1994). Writing skill is also impacted by reading extensively as reported by Elley and Mangubhi, (1981) and Janopoulos, (1986). The most important thing is that extensive reading will make the learners become better readers. Research in languages learning shows that learners learn to read by reading. It means that the more they read, the better reader they become. Conclusion Extensive reading is an approach which give the learners high amount of reading chance. It is a good technique which can give the learners high contact with the target language which can help them to master the language. There are some benefits of using extensive reading for EFL learner such as: improving learners’ motivation in learning English, enhancing learners’ vocabulary, improving reading comprehension, and also improving language proficiency (speaking, listening, writing and reading skill). References Alyousef, Hesham Suleiman. (2005). Teaching reading comprehension to ESL/EFL learners. Retrieved from www.readingmatrix.com/articles/†¦/article.pdf. Bell, Timothy. (1998). Extensive reading: why? and how?. Retrieved from http://iteslj.org/articles/bell-reading.html Hafiz, F.M., &Tudor, I (1989). Extensive reading and the development of language skills. English language teaching Journal, 43, (pp 4-13) Lan, Yu-Ju., Sung, You-Ting., & Chang, Kuo-En (2006) Collaborative early reading EFL reading among distributed learners: a simulation pilot study. The JALT CALL Journal, 2006, vol.2, No.2, pp3-18. Maley, Alan. (2009). Extensive reading: why it is good for our students†¦ and for us. Retrieved from http://www.teachingenglish.org.uk/articles/extensive-reading-why-it-good-our-studentss†¦-us Mason, B., & Krashen, S. D. (1997). Extensive reading in English as a foreign language. System, 25, 91-102. Retrieved from http://www.benikomason.net/†¦/extensive_reading2.pdf Richard, R.D. The benefits of extensive reading (ER). Retrieved from www.oup-bookworms.com/†¦reading/er_article. Shang, Hui-Fang., Briody, Paul., Lin, Chia-Yun. (2006) The effect of extensive reading strategies on

Angel Broking Ltd.

ORGANISATION STUDY ON Angel Broking Ltd. Sigra, Varanasi, Uttar Pradesh By Ashish Om (PB1104) & Jeswin George (PA1114) Group No. 53 Submitted to: UNIVERSITY OF MYSORE II SEMESTER INTERNSHIP – ORGANIZATIONAL STUDY BATCH OF 2011 – 2013 Through Contents Company Letter3 CERTIFICATE FROM THE GUIDE5 CERTIFICATE FROM THE GUIDE6 ACKNOWLEDGEMENTS8 Chapter 19 Industry Profile9 CHAPTER 213 COMPANY PROFILE13 Business Branches of Angel Broking16 Angel Group Consists of:16 Our Vision20 Our Motto20 Our CRM Policy: Customer is King20 Business Philosophy @ Angel Broking20Quality Assurance Policy @ Angel Broking20 CHAPTER 321 ORGANISATIONAL HEIRARCHY21 CHAPTER 425 STUDY OF FUNCTIONAL DEPARTMENTS25 4. 1 HUMAN RESOURCE DEPARTMENT26 4. 2 IT and Media29 4. 3 Marketing Department30 4. 4 Finance Department31 CHAPTER 544 SWOT ANALYSIS44 CHAPTER 647 CONCLUSION & SUGGESTIONS47 CHAPTER 753 BIBLIOGRAPHY53 Company Letter Company Letter CERTIFICATE FROM THE GUIDE This is to certify that this Internsh ip Report on Organizational Study at Angel Broking Limited is a bonafide study of Ashish Om, carried out under my guidance and supervision. PLACE: BANGALORE DATE:Prof. Y.Poornima CERTIFICATE FROM THE GUIDE This is to certify that this Internship Report on Organizational Study at Angel Broking Limited is a bonafide study of Jeswin George, carried out under my guidance and supervision. PLACE: BANGALORE DATE:Prof. Y. Poornima DECLARATION We hereby declare that this Internship Report on Organizational Study at ANGEL BROKING LIMITED submitted in partial fulfilment of the requirement for II Semester MBA Degree examinations 2012 of University of Mysore through Ramaiah Institute of Management Studies is our original work and not submitted to any other university.This work has been done under the supervision of Dr Y. Poornima in Ramaiah Institute of Management Studies, Bangalore. Place: Bangalore Date: Ashish Om (11MB50 ) Jeswin George (11MB5071) ACKNOWLEDGEMENTS First of all, we would like to thank the Almighty God for blessing us with the strength, aptitude and patience for successfully completing my internship and this report. I would like to thank my Faculty Guide, Prof. Y. Poornima for giving me the opportunity to work with her during my period of internship.I have been able to compile and complete this report in a comprehensive manner due to the guidance, support and counselling that she has provided me with during this period. I have tried my best to implement her constructive suggestions while doing my report. I would also like to take this opportunity to thank the management of Angel Broking. Ltd for providing the support to do this Internship. My sincere gratitude goes to Mr. G. N. Chowdry: Manager and Consultant Mines, Mr. Haroon Ahmed: In charge Mines, Mr. Arshad Ahmad: Deputy Chief Chemist, Mr.Farooq Ahmed: Electric Engineer and to Mr. Shakeel Ahmed: In Charge Cement Mill for giving me time from their busy schedule, providing me with information that was r equired to complete the report, and for guiding me properly throughout the period of my internship. I would also like to thank all the employees of Saifco Cements Pvt. Ltd. who have supported me and co-operated with me during my internship period. Finally my sincere thanks go to each and everyone who has helped and supported me significantly in different stages during the period of my internship. Chapter 1 Industry ProfileTo understand the equity market and maintain and cope up with the growing competition from the various online trading providers, Broking Company needs to find potential customer and also target the new investors. The project is being done to train the people about the whole procedure essential to open an online trading account couple with demat account. The project will help in exploring the area where there is the feasibility of acquiring more new investors. It would also help in knowing the various competitors of the industry and exploring the areas through which competitive advantage could be obtained. . 1 What is a Stock Market? A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36. 6  trillion at the beginning of October 2008. The total world derivatives market has been estimated at about $791  trillion face or nominal value, 11 times the size of the entire world economy.The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives ‘cancel' each other out (i. e. , a derivative ‘bet' on an event occurring is offset by a comparable derivat ive ‘bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The largest stock market in the United States, by market capitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsche Borse (Frankfurt Stock Exchange).In Africa, examples include Nigerian Stock Exchange, JSE Limited, etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there a re such exchanges as the BM&F Bovespa and the BMV. Market participants include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares.Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors. 1. 2 What is Stock Broking? The process of investing in the share market, either individually or through a broker is known as stock broking, in simple terms. This is primarily done by opening a Demat account. If done through a broker, he opens an account, helping you to operate through online stock broking facility. Going ahead the broker suggests investment ideas and strategies suiting individual requirements and based on his objective of investment.Tenure of investment, the selected financial instruments and their respective companies, the schemes, the risk taking ability, the sum available for investment, all are considered while forming investment choices. After the amount is invested, the broker tracks and monitors the investments, changes or reinvests depending on the performance and generates reports for them. This entire process is known as stock broking. To understand the equity market and maintain and cope up with the growing competition from the various online trading providers, Broking company needs to find potential customer and also target the new investors.The project is being done to train the people about the whole procedure essential to open an online trading account couple with demat account. The project will help in exploring the area where there is the feasibility of acquiring more new investors. It would also help in knowing the various competitors of the industry and exploring the areas through which competitive advantage could be obtained. 1. 2 Who is a Stock Broker A stockbroker is a regulated professional i ndividual, usually associated with a brokerage firm or broker-dealer, who buys and sells shares and other ecurities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. Stockbrokers are known by numerous professional designations, depending on the license they hold, the type of securities they sell, or the services they provide. In the United States, a stockbroker must pass both the Series 7 and Series 63 exams in order to be licensed. In most English speaking venues, the two word term stock broker, like stock brokerage, normally applies to the brokerage firm, rather than to the individual. CHAPTER 2COMPANY PROFILE 2. 1 Angel Broking Limited Date of Establishment: 1987 Market Cap: Rs. 725 crore (January 27, 2006) Address: G-1, Akruti Trade Center, Road No -7, MIDC, Andheri (E), Mumbai – 400093 Branches: Andhra Pradesh, Gujarat, New Delhi, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Tamil Na du, Uttar Pradesh and West Bengal Angel Broking provides retail related services encompassing Ebroking, Investment Advisory, Portfolio Management Services, Wealth Management Services and Commodities Trading. It is a member of Bombay Stock Exchange and National Stock Exchange.It is also a registered depository participant with CDSL. The company has a relaxed work atmosphere which thrives upon human values, co-operation, trust and respect. It ensures career growth to its employees with ample introduction to business practices. It has employee friendly HR policies which gives security and fair promotions. 2. 2 Insight into Angel Broking Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai.The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corp orate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department.Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its endeavour to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as ch anel partners for the company.The company presently has a total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buy-outs of smaller regional outfits and appointment of sub-brokers and franchisees. Moreover Angel has been tapping and including high net-worth and self-employed individuals it its vast array of clients.Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover Angel has been one among the pioneers to introduce the latest technological innovations and integrate it effici ently within its business. Angel Broking's tryst with excellence in customer relations began in 1987. It has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India.With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX ; MCX. Angel is also registered as a Depository Participant with CDSL. Business Branches of Angel Broking * Equity Trading * Commodities * Portfolio Management Services * Mutual Funds * Life Insurance * IPO * Depository Services * Investment AdvisoryAngel Group Consists of: * Angel Broking Ltd. * Angel Commodities Broking Ltd. * Angel Securities Ltd. 2. 3 The Management @ Angel Broking Mr. Dinesh Thakkar –  Founder Chairman ; Managing Director The Angel Group of Companies was b rought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the opportunity offered by the stock market to serve individual investors. Thus India’s first retail-focused stock-broking house was established in 1987.Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies. Mr. Lalit Thakkar –  Director – Research Mr. Lalit Thakkar is the motivating force behind Angel’s highly acclaimed Research team. He’s been a part of the senior management team since the Angel Group’s inception.His technical and fundamental outlook has provided impetus to Angel’s marke t research team. Research-based ; personalized advisory services are Angel’s forte, and Mr. Lalit Thakkar has undoubtedly been the brain behind it. When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His hands-on experience and fundamental knowledge of the market can predict the market trend early. His views on the market trend are often quoted in the print and electronic media Mr. Amit Majumdar –  Chief Strategy Officer A chartered Accountant by qualification, Mr.Amit Majumdar is a key member of Angel’s strategic decision-making process. He has been with the group since August 2004. He has handled several functions of the group like finance and operations, to name a few. He has rich experience in finance, investment banking, treasury, consultancy and advisory services. Mr. Majumdar has led many successful initiatives for the group. Before joining the Angel Group, Mr. Majumdar has been associated with Rabo India Finance, Ambit Corporate Finance and Ernst ; Young. Mr. Sachin Joshi –  Executive Director ; CFO Mr.Sachin R Joshi brings with him over 19 years of experience handling strategic positions in Business Operations ; Finance. He also has hands-on experience in Resource Raising, Strategic Planning, Business Restructuring, Public Listing (Local/ International), etc A Chartered ; a Cost Accountant by qualification, Sachin is also a post graduate in Law and has completed a one year Certificate Program (BLP II) from IIM (Kolkatta). He has been associated with reputed firms such as Navneet Group of Companies, Lupin Laboratories Ltd and Infrastructure Leasing ; Financial Services Ltd. (IL;FS).His last assignment which spanned over 11 years was with IL;FS Invest smart Group where he worked in various capacities such as Chief Financial Officer, Executive Director- Finance ; Operations and Chief Operating Officer Mr. Vinay Agrawal –  Executive Director – Equity Broking Mr. Vinay Agrawal leads th e Equity Broking business at Angel, which comprises Business Development, Operations, Product Development and E-broking initiative. He is actively involved in exploring new ways to adopt technology for business enhancement.A Chartered Accountant by qualification, Mr. Agrawal began his career with the Angel Group as Finance and Operations Consultant, and since then he’s quickly climbed up the corporate ladder. Mr. Nikhil Daxini –  Executive Director – Sales and Marketing With an MBA in finance, Mr. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel. His area of focus is Business Development, Risk Management and Operations. Mr. Daxini has immense experience in the marketing of financial products and services. He has been associated with HDFC Bank Ltd. n the past. Mr. Mudit Kulshreshtha –   Executive Director – Business Intelligence ; Analytics Mr. Mudit Kulshreshtha heads the adva nce analytics and strategic business intelligence division at Angel. With a Bachelor’s degree in Engineering and PhD in Economics, Mr. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. He has been associated with reputed consulting firms like Deloitte Consulting India, Ernst and Young, Arthur Andersen and WNS Global. He has advised several big clients in the U. S. and U. K.He is also a known speaker at public seminars and conferences organised by CII, NASSCOM, Indian School of Business and IIT. Mr. Santanu Syam –   Executive Director – Operations Mr. Syam brings with him over 18 years of experience in the field of Transaction Banking, Wholesale Banking, Treasury Banking, Consumer Banking and CBS. He started his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Head Banking. Mr. Syam followed up his Engineering degree with an MBA. He has also attended Banking ; Technology seminars organised by SCB Singapore, BSE India ; Euro Finance. ———————————————— ————————————————- 2. 4 KEY DEVELOPMENTS FOR ANGEL BROKING LTD. Angel Broking Ltd. to Invest INR 300 Million in Financial Year 2010 Angel Broking Ltd. Announced that it is planning to invest around INR 300 million this financial year for expanding its branch network. The company is looking to invest around INR 250-300 million in this financial year for expanding its network by 50 branches. The investment is in line with expansion strategy which sees huge potential in the long term.Under its expansion plans, the company would focus on few areas in the northern and southern regions including Punjab, Haryana, New Delhi, Tamil Nadu and Karnataka. The firm is also eying to tap semi-urban pockets which have huge investment potential. Angel Broking In Talks To Raise Funds Angel Broking Ltd. plans to finalize INR 2 billion – INR 2. 5 billion fund raising plans between December 2009 and March 2010. Dinesh Thakkar, Angel Broking’s CMD said, â€Å"We are got active interest from the US and UK-based institutions. We are open to diluting a significant stake. He did not reveal the valuations, because discussions were still in a preliminary stage. Angel Broking Ltd. Announces Executive Appointments Angel Broking Ltd. announced four key-appointments for its domestic operations. Hitungshu Debnath has been appointed as the head of its distribution ; wealth management services while Mudit Kulshreshtha will take over as the head of strategic business intelligence and advanced analytics initiatives. The company has also named Adil Kasad as the Chief Financial Officer (CFO) and Santanu Syam as head of retail operations across all busin ess verticals. 2. Angel Broking Credentials Our Vision To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. Our Motto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients. Our CRM Policy: Customer is King â€Å"A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business.He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so. † – Mahatma Gandhi Business Philosophy @ Angel Broking Ethical practices ; transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management Quality Assurance Polic y @ Angel Broking We are committed to providing world-class products and services which exceed the expectations of our customers, achieved by teamwork and a process of continuous improvement.CHAPTER 3 ORGANISATIONAL HEIRARCHY 3. 1 ORGANISATIONAL CHART 3. 2 Product Profile A product profile is an outline of the description of a product. The amount of detail contained in it varies with the style of the information sheet. It is not a specification sheet. It is a general description of the various products and services offered by a particular company or firm. This one is rather detailed, but note the difference between this and the Specifications detail. The following products are offered by Angel Broking in the process of its functioning: * Equity Trading Commodity Trading * Mutual funds promotion * Depository services * Margin Financing * NRI-Desk Management proximity to stock exchanges and banks. Equity Trading: For the first time Angel Broking investing commodity the power to be ass ociated with the elite dealing rooms and freedom to execute trade on their own. That is one may trade from their branches or trade own over the net and with that expertise and assistance. Depository Services: Angel Broking is among the few major Depository Participants holding securities worth more than Rs. 6000 crore under its management .RSL provides depository services investors as a depository participant with NSDL and CDSL. 16 Commodity Trading: Commodities are a word originated from the French word ‘commodity’ means  benefit profit. Angel commodities Limited is a member of both the exchange (MCX ; NCDEX)that allows trading in all the commodities traded at both the exchange . At  present, trading in commodities is restricted to futures contracts only. Benefits of Commodity Trading: To investors: Investors always look for alternative investments avenues where they can diversify their funds to achieve their financial goals.In financial market, commodities have ra pidly emerged as a major investment tool as they help in diversifying investments and to hedge against inflation, greatest threat to any investor. MUTUAL FUNDS SERVICES: Angel Broking is also promoting mutual funds of all companies. CORPORATE ADVISORY GROUP: Corporate advisory group provides various solutions to corporate banks and financial institutions son the management of debit, equity and investments. The service extends from advising client to earn maximum profit by investing through selected papers like MF/PMF etc.PORTFOLIO MANAGEMENT SYSTEM: Portfolio management services manage client’s wealth more efficiently reduces risk by diversifying across assets, sectors and funds, and maximizing returns at managed levels of risk . This service could also be called as â€Å"transparent collective investments†. INVESTMENT BROKING DIVISION: Angel Broking provides innovative, integrated and best – fit solutions to their  corporate customers, it is continuous endeav our to provide value enhancement through diverse financial solution on an on-going basis, through products like corporate debt , private equity , IPO, ECB, FCCB, GDR/ADR etc.CHAPTER 4 STUDY OF FUNCTIONAL DEPARTMENTS ————————————————- 4. 1 HUMAN RESOURCE DEPARTMENT Work Culture At Angel, exploring of new paths to provide the best value to all our internal and external customers is carried out. Angel Broking considers people as their biggest asset and believes in creating long term relationships by nurturing talent from within. A fast-growing, forward-looking organization like Angel, demands HR to be a key responsibility area of our core management team.The HR team constantly explores ways to enhance and augment the knowledge base and productivity of all Angels by providing various learning and development Programs. The three tier Leadership Development program helps all sta r performers to grow and develop their managerial skills to become effective mentors for their teams and thereby take on the next level of responsibility effectively. Angel’s is a winning team of highly determined, motivated, and adaptable people, all working diligently to take Angel's exciting success story forward.HR Philosophy At Angel, People come first. Along with the customers, the employees are equally vital to the organization. The Business of HR is to foster an entrepreneurial spirit – whereby Angels can operate with ownership as an entrepreneur (profit center) within the confines of their job role and earn over and above their fixed salaries. Angel believes in inculcating a sense of responsibility and ownership in all Angels which brings out the entrepreneurial zeal to explore potential within as well as beyond job boundaries.Our HR Philosophy is to engage employees at professional, emotional and material levels: * We aim to create an environment conducive to both personal and professional development of the employees, leading to a productive and happy work force * Angel believes that people impact business and therefore each and every Angel is a key resource and a valuable asset * Our business philosophy of being transparent in all our dealings with our customers, is equally applicable in dealings with employees * We encourage initiative, provide professional freedom and empower Angels based on trust Employee EngagementTeam HR at Angel works effectively to create a work environment and performance culture that fosters team spirit and enhances employee productivity through motivation and positive ambition. * Our HR team is continually working to rationalize and restructure measures to ensure better employee relationship management, employee communications and relations, recruitment and training need analysis; program design and implementation, performance evaluation and other work-life initiatives. Performance Management Core essence of Performance Management SystemsThe core essence of PMS is to build and strengthen the team member’s ‘Connect’ with Angel Broking through: * Enrolling the team member to Angel’s vision * Meaningful engagement * Meaningful dialogue * Openness to give and receive feedback * Compliment achievements * Focus on the team member’s growth to enhance performance| | The whole focus of PMS is to look for goodness in a person. The onus is on the managers to look for that goodness, identify strengths and try to create a role around strengths rather than getting bogged down with weaknesses.The Performance Management System at Angel has reduced manual intervention to a minimal level. The fully integrated online system uses sophisticated tools such as national and regional stack ranking, performance bands and rank based recommendations. All this is supported through one-on-one interactive feedback & coaching session with team. Performance credits are received for ex ceeding expected targets and there are equal opportunities for all employees to earn rewards with no upper limits. Performance credit structures have been worked out differently for various categories of employees.Career Why you should anyone work with Angel Broking? * Fast paced, enriching career with exposure to best business practices * Fair compensation & opportunities for growth / promotion based on merit * Vibrant work culture and opportunities for training, recreation and social interaction * Progressive HR policies with an open door approach and proactive processes to maintain high morale * Security of employment, subject to minimum acceptable performance Leadership Academy Learning is a continuous process at Angel Broking.We identify the strengths of employees and design training programs to build their strong points and overcome their shortcomings. We prepare our employees for future positions with training and by encouraging the learning process. This helps them to move t owards their career objectives efficiently. We also employ various people development initiatives like E-learning opportunities for functional & behavioural skills through video conferences and through our employee portal. Our E Wise – Be wise Program provides every Angel with 24Ãâ€"7 access to all relevant information about Angel.This encourages employees at all levels to upgrade their knowledge constantly and apply their learning’s in the day to day work to achieve high productivity and customer satisfaction levels. 4. 2 IT and Media The rapid innovation in the field of information and communication technology has posed serious challenges for the stock broking industry in India. The use and application of information technology in wide variety of insurer’s operations has now become strategic in the sense that it has direct impact on the productivity of resources, and a sweeping impact on reducing the case of various activities.With the arrival of private brok ers, the competition has become more intense and an important role is being played by the stock broking sector. Angel Broking has been maintaining a proper Management Information System for the proper recording of the information of all types available to them. This helps them to assess the information and analyse it for any kind of priority requirements. For any technology related problems that needs to be fixed, Angel Broking takes a time span which is dependent on the severity of the problem. It takes around a day or a week’s time to get the technology fixed if it is a small problem.Employees at the IT department get it resolved at the earliest and avoid turbulence which enhances a smooth flow of activities in the organization. At Angel Broking, the impact of Information Technology can be seen in the other departments also: Marketing department: In this department IT has facilitated the marketing executives to up sale the business and meet the business delegates with new t echnology and features of the their business. Finance Department: Angel Broking uses computerized accounting system which has reinforced the department to work with accuracy and reliability. Human resource department:The human resource department at Angel Broking also uses information technology to maintain databases of information regarding the employees working in the organization and their details. Since Angel Broking is basically a stock broking firm, they mostly concentrate on Press releases, Events and very few TV commercial Ads. 4. 3 Marketing Department The meaning of marketing has changed with the passage of time. In the modern times, the concept of marketing has been changed entirely due to cutthroat competition. Markets are no longer local but they have become national as well as international in character.In the past marketing was often referred as selling but now it has been realized that marketing is different from selling. Marketing department takes care of the market ing of all the products of the company. It helps in the increase of the business. It plays the major role in making the people aware of their product. It concentrates on making the strategies of how to increase the sales of the products. How they can segment the market to tap out its maximum potential profits. It also works on sales promotion to increase the sales of company. According to J. F.Pyle, â€Å"Marketing is that phase of business activity through which human wants are satisfied by exchange of goods and services†. Also marketing is the process of discovering and translating consumer wants into products and services specifications. Marketing differs in between products and service based organizations. As in manufacturing firms there is a product but in service-based organization the marketing has to be done of an intangible thing. In the Marketing department, we were given the opportunity to learn new things by observing and interacting with the Marketing team of   the company.I was involved with creating Product Invoice, recording and tracking the sales call from the distribution channel, analysing some sales figures of the company, and taking feedback and complaints from the customers via telephone and e-mail while working in the Customer Service Department. 4. 4 Finance Department This department keeps the proper track record of all the transactions taking place. It maintains the record of all the broking being carried out in our office. Ratio analysis of financial statements It is a systematic use of ratios to interpret/ assess the performance and status of the firm. A ratio expresses a mathematical relation between two quantities. * Ratios are tools providing us which clues and symptoms of underlying conditions. Ratios can help us to identify areas requiring further investigation. * The usefulness of ratio depends on the quality of the numbers in their calculation. That is our ability to draw useful insights and make valid intercompany co mparisons is enhanced by our skill in adjusting reported numbers prior to inclusion in these analyses. * Ratios are interpretable only in comparison with 1) Prior ratios 2) Predetermined standards. 3) Ratios of competitors.Ratio analysis of a firm’s financial statements is of interest to shareholders, creditors, and the firm’s management. Stockholders are interested in the firm’s current and future level of risk and return, which directly affect the stock price. The firm’s creditors are primarily interested in the short-term liquidity of the company and in its ability to make interest and principal payments. Internal management is concerned with all aspects of the firm’s financial performance. Therefore, they attempt to produce financial ratios that will be considered favorable to both owners and creditors.Additionally, management uses ratios to monitor the firm’s performance from period to period. Unexpected changes or variances are identif ied to isolate developing problem areas. IMPORTANCE OF RATIO ANALYSIS Ratio analysis does two things, immediately. The first thing is it allows the company to compare itself with other like companies. If management feels things aren't going well, they can help pinpoint the problem through comparing their ratios with other companies. They may have several ratios that are comparable, but a couple which are way off. That might be where the problem is.Also, ratio analysis may help by comparing your company with prior periods. If a particular ratio is declining when it would be better if it were staying the same or increasing, then again looking at the ratios are important to find out where the problem lies. Ratios are important to spot trends easily. Types of ratios: Ratios can be classified into six broad groups: 1. Liquidity ratios 2. Capital structure/ leverage ratios 3. Profitability ratios 4. Activity/ efficiency ratios 5. Integrated analysis of ratios 6. Growth ratios. 1. Liquidit y Ratios: It is the ability of a firm to satisfy its short- term obligations as they become due.The importance of adequate liquidity in the sense of the ability of a firm to meet current / short –term obligations when they become due for payment can hardly be overstressed. a) Current Ratio: Current Ratio is the ratio between Current Assets and Current Liabilities. It calculated by dividing Current Assets by Current Liabilities. Current assets include all assets, which can convert easily into near money within a year. Current assets include cash in hand, cash at bank, debtors, stock, and money at short or call notice etc. Current liabilities are the sum of all hort-term payables within a year, which include Sundry Creditors, Bills payable, Bank overdraft, Expenses outstanding etc. the current ratio of a firm measures its short term solvency that is, its ability to meet short-term obligations. As a measure of short-term current financial liquidity, it indicates the amount of cu rrent assets available for each amount of current liability. Formula for finding current ratio is given below. Current Ratio = Current Assets/Current Liabilities Current Ratio = Current Assets/Current Liabilities Significance of the ratio Current ratio provides a margin of safety to the creditors.In a sound business, a current ratio of 2:1 is considered an ideal one. Current ratio indicates firm’s ability to pay its current liabilities, i. e. day-to-day financial obligation. Current ratio is an index of the firm’s financial stability i. e. , an index of technical solvency and an index of the strength of working capital, which means excess of current assets over current liabilities. Higher ratio more than 2:1 indicates sound solvency position. Lower ratio less then 2:1 indicates inadequate working capital. b) Quick ratio: Quick ratio is also known as liquid ratio or Acid test ratio.Quick ratio shows the liquidity of the business. Quick ratio is the ratio between quick a ssets and quick liabilities. The term quick asset refers to current assets, which can be converted into, cash immediately or at a short notice without diminution of value. Quick assets comprise of all current assets minus stock and pre paid expenses. The formula to find quick ratio is as follows. Quick Assets = Current assets – (Stock + Prepaid expenses) Quick Assets = Current assets – (Stock + Prepaid expenses) Quick liabilities comprises of all current liabilities minus Bank over draft.Quick Ratio = Quick assets / Quick Liabilities Quick Ratio = Quick assets / Quick Liabilities The formula is shown below: Quick Ratio = Quick assets/Current Liabilities Quick Ratio = Quick assets/Current Liabilities Significance of the ratio It is the true test of business solvency. Generally an acid test ratio of 1:1 considered as satisfactory, by that a firm can easily meet all current claims. Higher ratio more than 1:1 indicates sound and good financial position. If the ratio is les s then 1:1, that is, liquid assets are less than current liabilities, the financial position of the concern shall be deemed to be unsound.This ratio gives a picture of firm’s ability to meet its short-term debts out of short-term assets. If less the quick ratio, higher the incidence of inventory in inflating the current ratio and higher is quick ratio, the incidence of inventory in inflating the current ratio is less. c) Net working capital: Working capital is the lifeblood of the business. Working capital refers to that part of the firm’s capital, which is used for financing short term or current assets, such as, cash, marketable securities, debtors, inventories, bills receivables etc. n a narrow sense, the term working capital refers to the net working capital. Net working capital is the excess of current assets over current liabilities. Net working capital = Current assets – Current liabilities Net working capital = Current assets – Current liabilities d) Turnover ratios: It measures the speed with which various accounts /assets are converted into sales or cash. It is concerned with measuring the efficiency in asset management. These ratios are also called efficiency ratios or asset utilization ratios. The liquidity ratios mentioned above are related to the liquidity of a firm as a whole.Another way of examining the liquidity is to determine how quickly certain current assets are converted into cash. The ratios to measure these are referred to as turnover ratio. The three relevant turnover ratios are, 1. Inventory turnover ratio: This ratio is also known as stock velocity. This ratio calculated to consider the adequacy of the quantum of capital and its justification for investing in inventory. A firm must have reasonable stock in comparison to sales. It is the ratio of cost of sales and average inventory. This ratio helps the finance manager to evaluate inventory policy.This ratio reveals the number of times finished Inventory tu rnover Ratio = Cost of sales/Average inventory Inventory turnover Ratio = Cost of sales/Average inventory 2. Debtors’ turnover ratio: Debtor’s turnover ratio is also called ‘Debtors velocity’ or ‘Receivables turnover’. A firm sells goods on credit and basis. When the firm extends its customers, book debts are created in the firms account. Debtors are expected to convert into cash over a short period, so it included in current assets. Debtors include the amount of bills receivables and book debts at the end of accounting period.It is a test to understand the reasonable quantitative relationship between outstanding receivables and sales. Financial analysts employ two ratios to judge the quality or liquidity of the Debtors turnover and Average collection period. Debtor’s turnover is found by dividing total sales by sundry debtors. Formula to find debtors turnover ratio is given below Debtors turnover = Total sales/Sundry debtors Debtors tu rnover = Total sales/Sundry debtors 3. Creditors’ turnover ratio: It is a ratio between net credit purchases and the average amount of creditors outstanding during the year.It is calculated as follows: Creditors turnover ratio= net credit purchases / average creditors Creditors turnover ratio= net credit purchases / average creditors Net credit purchases= gross credit purchases – returns to suppliers Net credit purchases= gross credit purchases – returns to suppliers Average creditors= average of creditors (including bills payable) outstanding at the beginning and at the end of the year Average creditors= average of creditors (including bills payable) outstanding at the beginning and at the end of the yearA low turnover ratio reflects liberal credit terms granted by suppliers, while a high ratio shows that accounts are to be settled rapidly. The creditor’s turnover ratio is an important tool of analysis as a firm can reduce its requirement of current asse ts by relying on supplier’s credit. The extent to which trade creditors are willing to wait for payment can be approximated by the creditor’s turnover ratio. Defensive – Interval Ratios: It is the ratio between quick assets and projected daily cash requirement. Defensive – interval ratios = Liquid assets /projected daily cash requirementDefensive – interval ratios = Liquid assets /projected daily cash requirement Projected daily cash requirement=projected cash operating expenditure/number of days in a year Projected daily cash requirement=projected cash operating expenditure/number of days in a year Cash Flow From Operations Ratio: Cash flow from operations ratio= Cash flow from operations/ current liabilities Cash flow from operations ratio= Cash flow from operations/ current liabilities This ratio measures liquidity of a firm by comparing actual cash flows from operations with current liability. It is calculated as per equationBeing a cash measur e, the ratio does not encounter the problems of actual convertibility of current assets and the need for maintaining minimum levels of these assets. In general, the higher the ratio, the better is a firm from the point of view of liquidity. 2. CAPITAL STRUCTURE /LEVERAGE RATIOS: The long term lenders/creditors would judge the soundness of a firm on the basis of the long term financial strength measured in terms of its ability to pay the interest regularly as well as repay the installment of the principal on due dates or in one lump sum at the time of maturity.The long term solvency of a firm can be examined by using leverage or capital structure ratios. It may be defined as financial ratios which throw light on the long term solvency of a firm as reflected in its ability to assure the long term lenders with regard to (1) Periodic payment of interest during the period of the loan and (2) Repayment of principal on maturity or in predetermined installments at due dates Ratios based on relationship between borrowed funds and owner’ capital: A. Debt –equity ratio:The financing of total assets of a business concern is done by owner’s equity as well as outsider’s debts. The relationship between borrowed funds and owner’s capital is a popular measure of long-term financial solvency of a firm. The relationship is shown by the debt equity ratio. This ratio indicates the relative proportions of debts and equity in financing the assets of a firm the formula we use is Total long-term debts by Shareholders fund. Total long-term debts include mortgage loans, long term loans; debentures etc. hare holders fund includes Preference share holders, Equity share holders, capital reserve, revenue reserve etc. Debt equity ratio = Total long term funds/Share holders fund Debt equity ratio = Total long term funds/Share holders fund Significance of the ratio: Acceptable norm for this ratio is considered to be 2:1. A higher debt-equity ratio is allowed in the case of capital-intensive industries, a norm of 4:1 is used for fertilizer and cement units and a norm of 6:1 is used for shipping units. A high ratio shows that the claims of creditors are greater han that of owners. A very high ratio is unfavourable from the firm’s point of view. A high debt company, also known as highly leveraged or geared, is able to borrow funds on very restrictive terms and conditions. A low debt-equity ratio implies greater claim of owners then creditors. From the point of view of creditors, it represents a satisfactory capital structure of the business since a high proportion of equity provides a larger margin of safety for them. This ratio shows the extent to which debt financing is used in the business. Debt –assets ratio:Another approach to calculating the debt to capital ratio is to relate the total debt to the total assets of the firm. The total debt of the firm comprises long- term debt plus current liabilities. The total assets co nsist of permanent capital plus current liabilities. Thus, Debt to total assets/capital ratio= total debt/ total assets Debt to total assets/capital ratio= total debt/ total assets c) Equity assets ratio: Still another variant of the debt/equity ratio is to relate the owner’s/proprietor’s funds with total assets. This is called the proprietary ratio.The ratio indicates the proportion of total assets financed by owners. Symbolically, it is equal to: Proprietary ratio = Proprietor’s funds / total assets x 100 Proprietary ratio = Proprietor’s funds / total assets x 100 Proprietary Fund to Fixed Assets Proprietary ratio relates shareholders’ funds to total assets. It is a variant of debt equity ratio. This ratio shows long term or future of the business. It calculated by dividing shareholders funds by the total assets. Proprietary ratio = shareholders funds/ Fixed assets Proprietary ratio = shareholders funds/ Fixed assets Preference share capital and equity share capital plus all reserves and surplus items are called shareholders fund. Total assets include all assets including goodwill. Significance of the ratio: The acceptable norm for the ratio is 1: 3. The ratio shows the general strength of the company. It is very important to creditors as it helps to find out the proportion of shareholders funds in the total assets used in the business. Higher ratio indicates a secured position to creditors and a low ratio indicates greater risk to creditors. Proprietary ratio is also analysis in the following manner Ratio of current assets to proprietor’s funds:It shows the relationship between current assets and Shareholders funds. The purpose of this ratio is to calculate the percentage of shareholders funds invested in current assets. It found by dividing current assets by proprietors funds. Significance of the ratio This ratio can be expressed in percentage or as a proportion. Different industries are using different norms and h ence the ratio should be carefully used. c) Coverage ratios: It measures the firm’s ability to pay certain fixed charges. These ratios are computed from information available in the profit and loss account.For a normal firm, in the ordinary course of business, the claims of creditors are not met out of the sale proceeds of the permanent assets of the firm. The obligations of a firm are normally met out of the earning or operating profits. 1. Interest coverage ratio: It measures the firm’s ability to make contractual interest payments. Interest coverage = EBIT / interest Interest coverage = EBIT / interest It is also known as ‘time-interest- earned ratio’. This ratio measures the debt servicing capacity of a firm insofar as fixed interest on long term loan is concerned.It is determined by dividing the operating profits or earnings before interest and taxes by the fixed interest charges on loans. 2. Dividend coverage ratio: It measures the ability of a firm to pay dividend on preference shares which carry a stated rate of return. This ratio is the ratio of net profits after taxes and the amount of preference dividend. Thus, Dividend coverage ratio = EAT/ PREFERENCE DIVIDEND Dividend coverage ratio = EAT/ PREFERENCE DIVIDEND 3. Total fixed charges coverage ratio: It measures the firm’s ability to meet all fixed payment obligations.The total coverage ratio has a wider scope and takes into account all the committed fixed obligations of a firm, that is, 1) Interest on loan 2) Preference dividend 3) Lease payments 4) Repayment of principal Symbolically, Total fixed charges coverage ratio = EBIT + Lease payment/ interest + lease payment + (preference dividend + installment of principal) / (1-t) Total fixed charges coverage ratio = EBIT + Lease payment/ interest + lease payment + (preference dividend + installment of principal) / (1-t) . Cash flow coverage ratio: Total cash flow coverage = EBIT+ lease payments + depreciation + non-cash expenses / lease payment + interest + (principal repayment)/(1-t) + (preference dividend)/ (1-t) Total cash flow coverage = EBIT+ lease payments + depreciation + non-cash expenses / lease payment + interest + (principal repayment)/(1-t) + (preference dividend)/ (1-t) The overall ability of a firm to service outside liabilities is truly reflected in the total cash flow coverage ratio: the higher the coverage, the better is the ability 5. Debt services coverage ratio:Debt service capability is the ability of a firm to make the contractual payments required on a scheduled basis over the life of the debt. It is considered a more comprehensive and apt measure to compute debt service capacity of a business firm. It provides the value in terms of the number of times the total debt service obligations consisting of interest and repayment of principal in installments are covered by the total operating funds available after the payment of taxes: Earnings after taxes, EAT + interest + depreci ation + other non – cash expenditure like amortization. 3.Profitability ratios: The profitability of a firm can be measured by its profitability ratio. Apart from the creditors, both short-term and long terms, also interested in the financial soundness of a firm are the owners and the management or the company itself. The management of the firm is naturally eager to measure its operating efficiency. Similarly the owners invest their funds in the expectation of reasonable returns. The operating efficiency of a firm and its ability to ensure adequate returns to its shareholders/ owners depends ultimately on the profits earned by it. a) Gross Profit Ratio:Gross profit is the result of the relationship between prices, sales volume and costs. It measures the percentage of each sales rupee remaining after the firm has paid for its goods. A change in the gross margin can be brought about by changes in any of these factors. The gross margin represents the limit beyond which fall in s ales prices are outside the tolerance limit. Further, the gross profit ratio/ margin can also be used in determining the extent of loss caused by theft, spoilage, damage, and so on in the case of these firms which follow the policy of fixed gross profit margin in pricing their products.A high ratio of gross profit to sales is a sign of good management as it implies that the cost of production of the firm is relatively low. It may also be indicative of a higher sales price without a corresponding increase in the cost of goods sold. It is also likely that cost of sales might have declined without a corresponding decline in sales price. A relatively low gross margin is definitely a danger signal, warranting and careful and detailed analysis of the factors responsible for it. Gross profit ratio= gross profit x 100 Sales Gross profit ratio= gross profit x 100Sales Net profit ratio: It measures the percentage of each sales rupee remaining after all costs and expenses including interest an d taxes have been deducted. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover from revenues of the period, the cost of merchandise or services, the expenses of operating the business (including depreciation) and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk.The ratios of net profit (after interest and taxes) to sales essentially express the cost price effectiveness of the operation. A high net profit margin would ensures adequate return to the owners as well as enable a firm to withstand adverse economic conditions when selling price is declining, cost of production is rising and demand for the product is falling. A low net profit margin has the opposite implications. Net profit ratio = Net profit x 100 Sales Net profit ratio = Net profit x 100 Sales a. Return on capital employed: The ROCE is the second type of ROI.Here the profits are related to the total capital employed. The term capital employed refers to long- term funds supplied by the lenders and owners of the firm. It can be computed in two ways. First, it is equal to non –current liabilities (long term liabilities) plus owners’ equity. Return on capital employed= Net profit x100 Capital employed Return on capital employed= Net profit x100 Capital employed SUMMARY OF FINDINGSRatio analysis is an important tool for financial statement analysis. Here we studied various ratios relating to measurement of the financial performance such as current ratio, quick ratio, debt equity ratio, proprietary ratio, gross profit ratio etc. In the previous chapter we made a detailed analysis of the Angel Broking Limited from 2005 to 2009. The major findings are given below * The study shows there is a continuous changes in the current ratio and also it is not satisfactory when compare to actual standard of 2:1. * Current ratio in the year 2005, it is showing 1. 5% and later on it went on increasing way i. e. in 2006 – 1. 44%, 2007 – 1. 36, 2008-1. 37%. * Current ratio in past three years it was getting to meet the standard, but in the year of 2009 again it went down to 1. 07%. * The quick ratio for this company is same as mentioned in the above table. Because as there is no inventory and prepaid expenses to deduct in this company as it is insurance company we cannot find inventory. * The study shows that the net working capital in the company is Rs. 52,669,000 in 2005, Rs. 1,182,432,000 in 2006, in 2007 – Rs. ,420,039,000, in 2008 – Rs. 2,324,559,000 and in 2009 again it decreased to Rs. 614,591,000. * The study shows that the debt equity ratio is satisfactory from the creditors point of view that is in the year 2005 the percentage of ratio is 2. 65%, in 2006 – 3. 73%, in the year 2007 – 5. 50%, in 2008- 6. 33% and in 2009 it is 5. 29%. * The study shows that the propri etary ratio to fixed assets is 2005- 4. 37%, 2006- 10. 53%, 2007- 11. 36%, 2008- 9. 96%, 2009- 12. 73%. * The study shows that the proprietary ratio to current ratio is in 2005-2. 79%, 2006- 1. 64%, 2007- 1. 5%, 2008- 1. 55%, 2009- 1. 91%. * The study shows that gross profit ratio of the company was went on decreasing but it is recovering from more loss to less loss and the percentage of ratio is, in the year 2005 is -0. 13%, in 2006 it is -0. 08%, in 2007 it is -0. 04%, in 2008 it is -0. 05%, in 2009 it is -0. 09% * The study shows that the net loss was went on decreasing from the year 2005 to 2008. But in the year 2009 it has incurred more loss than 2006, 2007, and 2008 but less than 2005 (i. e. 2005 = -0. 27, 2006= -. 20, 2007= -. 16, 2008= -0. 14, 2009= -0. 2) * The study shows that the return on capital employed is not good because every year it is earning negative returns and also the percentage of negative returns went on increasing way (i. e. 2005= -58. 80%, 2006= -49. 99%, 2007= -52. 88%, 2008= -51. 90%, 2009= -64. 62%. CHAPTER 5 SWOT ANALYSIS 5. 1 Strengths * It is a pioneer in online trading with a turn over of Rs. 220. 5 billion and Over 6810 sub-Brokers ; Business Associates. * Angel Broking provides multi-channel access to all its customers through a strong online presence with www. angelbroking. om,144 share shops in all over India and a call-center based Dial-n-Trade facility. Nation-wide network of 21 Regional Hubs Presence in 124 cities. * Above 6th lakh client in all over India * 100+ member research ; advisory team comprises of experienced fundamental and technical analyst, sector specialist, derivative strategists. * Angel Broking has dedicated research teams for fundamental and technical research, which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%. Angel Broking Ltd. Announced that it is planning to invest around INR 300 million this financial y ear for expanding its branch network. The company is looking to invest around INR 250-300 million in this financial year for expanding its network by 50 branches. * The company has been increasing at a compounded growth rate of 100% every year. 5. 2 Weakness * Localized presence due to insufficient investments for countrywide expansion. * Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc). Lesser emphasis on customer retention. * Focuses more on HNIs than retail investors which results in meager market-share as compared to close competitors. * Not listed in stock exchange. 5. 3 Opportunities * With the booming capital market it can successfully launch new services and raise its client’s base. * It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc. * As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market. Abolition of long-term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors. * Angel Stock Broking Ltd. plans to finalize INR 2 billion – INR 2. 5 billion fund raising plans between December 2009 and March 2010. Dinesh Thakkar, Angel Broking’s CMD said, â€Å"We are got active interest from the US and UK-based institutions. We are open to diluting a significant stake. † * Increasing usage of Internet through broadband connectivity may boost a whole new breed of investors for trading in securities. . 4 Threats * Aggressive promotional strategies by close competitors may hamper Angel Broking’s acceptance by new clients. * Lack of sufficient branch-offices for speedy delivery of services. * More and more players are venturing into this domain, which can further reduce the earnings of Angel Stock Broking Ltd. CHAPTER 6 CONCL USION ; SUGGESTIONS 6. 1 Conclusion On the basis of the study it is found that Angel Broking Ltd. is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.Angel Broking Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPO’s are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while it’s going to be biggest market in India.From the above survey and observation it is found that most of the people who are trading in share market belongs to the employee group, next comes the business men and other class of income people. As the share market value goes on increasing day by day the investor who wants to invest in shares also increasing. But investing in shares is as risky as earning yield. Trading in online trading firm is easy as it all delivered with internet and within a few minutes the customer can buy and sell shares which save time as well as reduction of paper work.Hence trading in share market is increasing day by day and investors are ready to invest their investment in share market only. I got the knowledge about the customer’s needs and their references for having a particular product. The need of customers differs from person to person, area, locality and occupation. Customer always wants more service by paying less. They expect all the information such less rates, less brokerages, highly returns and better service level without delay. W

Buddhist Cultures (Development and Adaption) Essay

Buddhist Cultures (Development and Adaption) - Essay Example ly matters, study, physical exercises, cultivation of wisdom and the negation of suffering by understanding the true meaning of our natural phenomena. The main goal of Buddhism was to achieve Nirvana, which was through the negation of rebirths and end the human suffering which was bourn by the human soul. While Buddhism is quite popular amongst people in the Asian countries, it has branches across the globe. It is also believed that Buddhism has over 500 million followers across the world. (Hinnells, 2003, pp. 498-504) Thervada is a Sanskrit word which means â€Å"the teaching of the elders.† Founded in India, it is the oldest surviving Buddhist school. It is a closely guarded Buddhist school which is supposed to be the closest to the original teachings of Buddhism and is the main religion of Sri Lanka. It is also prevalent in South East Asia, wherein countries such as Laos, Cambodia, Burma and Thailand have been following its practices for centuries. Thervada is also prevalent in China wherein it is practiced by the minorities such as the Tai and Shan ethnic groups. Likewise, it is also prevalent in Vietnam wherein the Khmer Krom, vouch for its purity and authenticity. The Baruas, Chakma and Magh communities of Bangladesh are also known to be its staunch followers. Thervada is now slowly spreading to other parts of the globe with Malaysia, Indonesia, Singapore and Australia being the latest inclusions. (Hinnells, 2003, pp. 498-504) The Thervada school of Buddhism believes in the continuous analytical process of life. It is therefore not merely composed of mere rituals and customs. It believes in the Four Noble Truths, which are also known as the Four Sublime Truths. In simple words, they foretell the problem, its origin, the solution and the pathway to solution. (Hinnells, 2003, pp. 498-504) Dukkha Samudaya-this refers to the cause of suffering and can be categorized into three kinds of cravings. The first is craving for pleasurable sense objects, the second

The Gospel Message Coursework Example | Topics and Well Written Essays - 250 words

The Gospel Message - Coursework Example Although they know that the things they are doing are wrong, they choose to satisfy their desires and this makes them reject the gospel. One emotional reason why people reject the gospel is being unworthy of God’s love because they have sinned too much and should not be forgiven. Some are just too proud to acknowledge their sins and humble before God. Others have been hurt so deeply they would not like to forgive and so they reject the gospel because they know they that if they turn their hearts to God, they must forgive. People argue that the gospel does not answer all life’s questions the way science does. Some question the validity of the stories in the Bible. Others question God’s attributes. For instance they ask, â€Å"If God is good, why is there hell?† or â€Å"If God is almighty, why is there chaos and hardship?† Christians should have a good grasp of the gospel so that they will be able to point out the specific verses that answer specific arguments. In addition, they should be sure of their convictions so that they can use their own personal experiences or encounter with God to convince others like Paul

Managing people in the work environment Essay Example | Topics and Well Written Essays - 750 words

Managing people in the work environment - Essay Example Organisational researches reflect that employees would be most open to learning during the initial stages of their job. Since induction would produce valuable impacts on the work area, managers must design a well structured induction program. This paper will analyse various contributions that induction makes to tourism, events, or consumer-focused organisations in UK. Benefits of induction to tourism Tourism as a fast growing industry has become the major source of revenue for many developing countries. There are two trends emerging in tourism recently; people visiting hill stations, seashores and historical places of domestic land; and people travel abroad to enjoy the beauty of foreign destinations. The tourism policy focuses on the supply of adequate facilities to accommodate and entertain the visitors. It is obvious that an individual would not get a good touring experience unless he/she is provided with the service of an efficient tourist guide. In other words, employees working in the tourism sector must be skilled and efficient in order to give a memorable touring experience to clients. By considering the emerging scope of tourism sector, more and more employees are recruited presently. At this juncture, a well designed induction program would promote effective communication between the manager and employees since the very beginning. It is important for employees in the tourism sector to be aware of the mental perceptions of the customers as they are to deal with people from different regions and cultures. According to Kusluvan (2003, p. 79), a good induction programme may largely increase the scope of tourism sector which in turn would serve the economic interests of the nation as a whole. Similarly, the induction may also help the industry to meet the increasing employee requirements. To illustrate, since induction programme assists employees to quickly assimilate with the organisation, they become able to bear organisational responsibilities within a shorter period of time. As a result, organisations’ employee training and development processes become comparatively cost effective. Benefits of induction to consumer-focused organisations in UK It has been identified that the concept of induction offers far reaching benefits to consumer-focused organisations in UK. A consumer focused organisation provides exceptional services to its customers and it is often recognized as an entity that incorporates customer-focused behaviors into its daily operations. ‘First Direct’ is an example of customer-focused organisation in UK, which provides flexible services to its customers. Any organisation can turn into a customer-focused organisation by restructuring its policies and practices. Since the organisations in UK have access to a large group of potential consumers, they can make considerable changes in profitability by applying effective strategies that may improve overall organisational performance. As everyone knows, the quality of worksite environment plays a vital role in determining the efficacy of organisational performance. In order to improve the quality of the workplace atmosphere, it is necessary to meet the employees’ worksite interests effectively. A well planned induction program would not only meet this objective but also add to organisational value. It is important to make a new employee feel at home as the first step in the process of integrating him/her into the workplace. Obviously, a new staff would

HISTORY OF TECHNOLOGY & ENVIRONMENTAL IMPACTS Essay

HISTORY OF TECHNOLOGY & ENVIRONMENTAL IMPACTS - Essay Example If a new technology was introduced, it was known all over the world. Each technology had a great impact on the society. The development in the engineering field has taken over the world. It has lead to a drastic improvement on the functioning of the world. Engineering was used in almost all the fields, which reduced the burden of humans. One by one technology developed which helped in the easy way of achieving things. Technologies were introduced for agriculture, cultivation and other areas. Before many years, people were struggling to do a specific task, as everything had to be done by them without machines. For their livelihood, they had to go in search of food and shelter. They had to keep changing the places they lived, due to the seasonal and climatic changes. They did not have any method to cook their food, which made them to eat it raw. This urged them to create some tools that can be used in their daily life. Then came the time when they required storing facilities. Tools for storing water and food were invented. As people started inventing these systems, they passed it to the people in other parts. (Samari 2005). This in turn lead to the improvement in the people’s living. The development in technologies mostly took place in countries like India, countries in the Middle East and Europe. Some of these inventions and developments seemed to be difficult for the people in the countries to implement in their daily life. After some time people started recognizing the importance of these technologies and most of the countries began to use them. There has been a tremendous improvement in the field of science that taught the importance of the world and the environment. Many new inventions and discoveries were proposed and it was a great boon to the people. Education and its facilities were improved by the use of technologies. Industrial revolution resulted in the development and establishments of

Electronic patient records (EPR) Essay Example | Topics and Well Written Essays - 2500 words

Electronic patient records (EPR) - Essay Example It presents novel techniques of storing, controlling and conversing medical information of all kinds; those are more influential and flexible than paper base recording methods. It is the strategy of governments that seems to support a national healthcare infrastructure with a longitudinal patient record comprising a patients whole medical history from the birth to the death. At the same time, these advances increase a number of moral concerns. EPR may easily build a doctor-patient rapport through use of computerised notes, which the doctor and patient share. On the other hand, EPRs can damage the relationship and weaken faith. For instance, in the some developed countries there are medical data clearinghouses that trade medical patient information to insurance companies, police departments, employers, drug companies, and so on. As a result, patients are becoming unwilling to tell their doctors all about their medical conditions and the origin of them. Because of this doctor-patient r apport gets damaged and most crucially threatens to damage quality of care. Obviously, there is an anxiety and trade-off amid the need-to-know and the right to confidentiality that must be dealt with. Breach of medical confidentiality may seem to be easy for the reason that the competence of computerised systems. The harm to the patient whose confidentiality is dishonoured may be proportionately bigger as the quantity of information held within the EPR. But the merits comparing to the demerits are greater. The intention of this article is to trace the history of the efforts made by a Western industrialised nation to implement EPR, (b) to identify the benefits and issues arising, and (c) to reflect on the extent to which such an initiative is transferable to a developing country (Rogerson, 2000). The development in medical science is in step with the growth in various other fields, mainly the

Reflective Paper Essay Example | Topics and Well Written Essays - 1500 words

Reflective Paper - Essay Example s unit, for sure, every company will not work on its optimum for the reason that HRM operates to an aim of improving the effectiveness of the company through its main resource, its people (Gospel, 2009). In order to meet the company’s goals and objectives, the human resource management takes into account a lot of domains. Above all, it should strategically plan on how all these will be met. In this strategic planning, first, the human resource needs must be taken into consideration. There are different views on the strategic aspects of human resource management. Various existing literatures have their own perspective of HRM. Likewise, many definitions of strategic human resource management exist. In 2001, Kazmi and Ahmad discussed the different approaches to strategic human resource management. According to them, definitions of strategic HRM vary depending on the particular approach. The strategic approaches to HRM are strategy-focused, decision-focused, content-focused and implementation focused. Specifically, the strategy-focused approach as considered by Beer, Spector, Lawrence, Mills and Walton (1984) claims that human resource management is strategic by its very nature. This approach greatly believes that all elements that make HRM are connected strategically. For Devanna, Fombrun and Tichy (1981), the decision-focused approach, on the one hand, are based on three decision –making levels such as operational, managerial and strategic. While for the c ontent-focused approach, Torrington and Hall (1995) stated that the strategic human resource management occurs only when there is a match between the elements of HRM and the strategy of the organization. Lastly, implementation-focused approach of strategic human resource management is when each system of HRM facilitates in the designing business strategies and of course, its implementation (Miles and Snow, 1984). However, my real learning of HRM has emerged through my personal experience as a nurse employee.

The MP3 Player Industry Essay Example | Topics and Well Written Essays - 2500 words

The MP3 Player Industry - Essay Example Second, the industry has been dominated by Apple because the company garners from 65 to 80 percent of the market share. Third, technological leadership appears to be a major determinant of who leads in the industry. Marino pointed out that â€Å"MP3 player manufacturers were continuously working to develop players that were physically smaller, with larger storage capacity, a longer batter life, and a simpler user interface† (p. 2). Fourth, electronic devices have been converging. As pointed out by Marino, â€Å" combinations of cameras, MP3s, personal digital assistants (PDAs), and even cell phones were becoming abundantly popular† (p. 3). This means that even the MP3 player industry can disappear with the emergence of a product the combines the cellular phone, MP3 player, camera and personal digital assistants. In view of this, it can be asserted that the basic competition in the MP3 player industry is a fast, seamless, efficient and excellent transformation of each MP 3 player firm into a firm producing a product that integrates the features of a camera, cellular phone, MP3 player, personal digital assistant and other electronic equipment into a single device. For instance, one device that has been integrated recently into such a device is the GPS locator or the device that identifies one’s exact location on earth in terms of latitude and longitude. Varian (2010, p. 523) defines a dominant strategy as the â€Å"one optimal choice of strategy for each player no matter what the other player does.† Varian (2010, p. 523) elaborated that â€Å"if there is a dominant strategy for each player in some game, then we would predict that it would be the equilibrium outcome of the game.† Varian (2010, p. 536) said â€Å"a dominant strategy equilibrium is a set of choices for which each player’s choices are optimal regardless of what the other players choose.† Similar with the Varian (2010) definition, a popular definition of dominant strategy is by Michael Shor. According to Shor (2006a), â€Å"A strategy is dominant if, regardless of what any players do, the strategy earns a larger payoff than any other. Hence, a strategy is dominant if it always better than any other strategy, for any profile of other players actions. Depending on whether â€Å"better† is defined with weak or strict inequalities, the strategy is termed strictly dominant or weakly dominant. If one strategy is dominant, then all others are dominated.† In general, the dominant strategy can be a Nash equilibrium. According to Shor (2006b), Nash equilibrium â€Å"is a set of strategies, one for each player, such that no player has incentive to unilaterally change her action.† Among several possible dominant strategies, a Nash equilibrium is one possible dominant strategy in the MP3 Player industry. 2. 5 Forces of the music player industry and which one is the strongest? The idea of five forces shaping the industry cam e from Porter (1985). According to Porter (1985, p. 5), the five forces any industry are rivalry among firms, bargaining power of buyers, threat of new entrants, bargaining power of suppliers and threat of substitute products or services. Like in any other industry, the same five forces are shaping the MP3 player industry although Hunger and Wheelen (2011) has identified a sixth which consists of the other stakeholders. According to Hunger and Wheelen (2011), these other stakeholders include governments, local communities and groups that can influence

Mooting Essay Example | Topics and Well Written Essays - 500 words

Mooting - Essay Example right position by upholding that an advertisement is an invitation to treat and not an offer, therefore there was neither an offer nor contract between the respondent and the appellant. In proving this the respondent will rely on the literal rule of the statute. 2. The respondent submits that the advert which was placed on the 4th November was just an invitation to treat. We further submit that the judge is expected to at first instance apply the literal rule of the statute before considering anything else.1 Thus we submit that as held in partridge,2 an advert amount to an invitation to treat and not an offer.3 4. We submit that though it’s possible to make an offer to the world (unilateral offer), the facts of this particular case are very different from those of Carlill v Carbolic smoke ball case,5 since in the Carlill case the respondent company had deposited $1,000 in the Alliance Bank to show their commitment and in which it can be inferred their intention to be bound by, upon acceptance, but in this case, the Respondent did not show in any way either express or implied intention to be bound by the advert upon acceptance thus it can only be concluded to be an invitation to treat and not an offer. 5. Furthermore, the respondent submits that the Appellant did not communicate upon acceptance as it’s the general the rule of requirement that the offeree must communicate to the offeror upon acceptance to effect the contract formation.6 Also, the appellant cannot claim that their conduct amount to an acceptance,7 since the need to communicate acceptance is only waived when the other party does not object to the conduct of the appellant. But in this case the respondent objected to the appellant conduct long before even the stall was opened,8 and even upon opening the stall their objected to his

The Role of United Nations in 21st Century Essay Example for Free

The Role of United Nations in 21st Century Essay The United Nations is an international organization of independent countries. These countries have joined together to work for world peace and against poverty and injustice. The UN was established as a result of a conference in San Francisco in June 1945 by 51 countries committed to preserving peace through international cooperation and collective security. Today, nearly every state in the world belongs to the UN 191 countries in all. UN headquarters are located in New York City. The UN is not a world government, and it does not make laws. It does, however, provide the means to help resolve international conflicts and formulate policies on matters affecting us all. At the UN, all the Member States large and small, rich and poor, with differing political views and social systems have a voice and vote in this process. | | The UN has  four main purposes, as stated in its Charter: 1. To keep peach throughout the world;? 2. To develop friendly relations among nations;? . To help improve living conditions of poor people and encourage respect for each others rights and freedoms;4. To be a centre for helping nations achieve these goals. | ? The UN is central to global efforts to solve problems which challenge humanity. Cooperating in this effort are more than 30 affiliated organizations known together as the UN system. Day in and day out, the UN and its family of organizations work to promote respect for human rights, protect the environment, fight disease, promote development and reduce poverty. UN agencies also define the standards for safe and efficient transport by air and sea, help improve telecommunications and enhance consumer protection, work to ensure respect for intellectual property rights and coordinate allocation of radio frequencies. The United Nations leads the international campaigns against illicit drug trafficking and terrorism. Throughout the world, the UN and its agencies assist refugees and set up programmes to clear landmines, help improve the quality of drinking water, expand food production, make loans to developing countries and help stabilize financial markets. The UN is central to global efforts to solve problems which challenge humanity. Cooperating in this effort are more than 30 affiliated organizations known together as the UN system. Day in and day out, the UN and its family of organizations work to promote respect for human rights, protect the environment, fight disease, promote development and reduce poverty. UN agencies also define the standards for safe and efficient transport by air and sea, help improve telecommunications and enhance consumer protection, work to ensure respect for intellectual property rights and coordinate allocation of radio frequencies. The United Nations leads the international campaigns against illicit drug trafficking and terrorism. Throughout the world, the UN and its agencies assist refugees and set up programmes to clear landmines, help improve the quality of drinking water, expand food production, make loans to developing countries and help stabilize financial markets. | Historical Development of UN When it established, its members was 51. Nowadays member of united nations are 192. This number includes People’s Republic of China and Vatican which is not a member of this organizations anymore. Turkey is a founder member of United Nations. Central of United Nation is in New York. All of meeting with member countries are making in this space. Before this organization , there was different organizations. Such as league of nations which is established on term between two word war. The main differences between the League of Nations and the United Nations were the stronger executive powers assumed by the Security Council and the requirement that member states should make available armed forces to serve as peace-keepers or to repel an aggressor. President of USA (F. D. Roosevelt) propound to this concept (United Nations). This declaration was followed by a conference of Foreign Ministers in Moscow, in October, 1943 where discussions took place concerning a replacement for the discredited League of Nations. United Nations was firstly used in decisions of declaration by UN which include combined and maintaining of war against axis powers on 1 January 1942. China , Soviet Union , Britain and US ‘s delegates determined UN principal agreement by congregating in Dumbarton Oaks In Augusts and Octobers on 1944. Every year on 24 October is celebrated as United Nations day by member countries . UN principal agreement determined aim of this organization; To protect international peace and security by peaceful solvation of problems and using active expedience. To provide development of rights of people without being any differences between nation , sex, language, religion in solutions of problems about international. Language of UN: United Nations legal languages are Arabic, Turkish , French , English , Spanish and Russian. Un? ted Nations basic discipline are : All members are hegemon and equal. 2- All members are responsible of process of UN role in international relations. 3- Any member of this organization wouldn’t use any power. 4- All members have to support UN’s applications. 5- UN never touch any countries’ home affairs except for protecting international peace. Organs of UN: United Nation has six basic organ and subsidiary organ. Basic organs are general assembly, security council, economic and social council Trusteeship Council (not active) , general secretary and international court of justice. General assembly is a basic discussing organ of UN. Each member country has a vote. This assembly makes meeting on September or December regularly, but sometimes when there is a extraordinary they can be collected. Security Council has a basic responsible about international peace and security. -The Economic and Social Council assists the General Assembly in promoting international economic and social cooperation and development. -The United Nations Secretariat is headed by the Secretary-General, assisted by a staff of international civil servants worldwide . It provides studies, information, and facilities needed by United Nations bodies for their meetings. It also carries out tasks as directed by the UN Security Council, the UN General Assembly, the UN Economic and Social Council, and other UN bodies. -The International Court of Justice, located in The Hague, Netherlands, is the primary judicial organ of the United Nations. The Security Council had five permanent members, United States, the Soviet Union, China and Britain. Six other countries served two-year periods on the Council (this was increased to ten in 1965). Controversially, permanent members were given the power to veto decisions made by the Security Council. The other nations vigorously opposed the idea of the veto but it became clear that without such a favoured position the five major nations would not join the United Nations. The United States Senate ratified the United Nations treaty by a vote of 89 to 2 on 28th July, 1945. The Role of United Nation: United Nation is an opportunity for all world to solve global problems since sixty years. This is also opportunity to conquer anarchic system which created by dominant state . As the most representative inter-governmental organization of the world today, the United Nations role in world affairs is irreplaceable by any other international or regional organizations. The United Nations has made enormous positive contributions in maintaining international peace and security, promoting cooperation among states and international development. Today, people of the world still face the two major issues of peace and development. Only by international cooperation can mankind meet the challenges of the global and regional issues. The United Nations can play a pivotal and positive role in this regard. Strengthening the role of the United Nations in the new century and promoting the establishment of a just and reasonable international political and economic order goes along with the trend of history and is in the interest of all nations. In order to strengthen the role of the United Nations, efforts should be made to uphold the purposes and principles of the Charter of the United Nations. The authority of the Security Council in maintaining international peace and security must be preserved and role of the United Nations in development area should be strengthened. To strengthen the role of the United Nations, it is essential to ensure to all Member States of the United Nations the right to equal participation in international affairs and the rights and interests of the developing countries should be safeguarded. The UN has had so many positive impacts on the world that naming a few would be almost silly but here goes:? Established a peace treaty in Yugoslavia. If the UN didnt exist the genocide would have continued. Has a security council that is made up of almost every type of political standing in which all have to agree if war is allowed to happen and is just. Established neutral zones in many middle eastern conflicts to make both sides take a breather and try to talk. Allows for open communication between all the nations in the world. Sends food aid to many poor locations. Before all the haters jump in, they need to realize that it is not perfect but it is at least an attempt at fixing the problems of the world. Almost all things bad that have happened from the UN have been because a country didn’t listen. The role of UN in 21st Century: As the United Nations (UN) enters the 21st Century, it is faced with challenges that were not seen by its creators. The end of the Cold War, globalization, intra-state conflict, and a desire to achieve universal human rights continues to separate the world between those who have and those who need assistance. In order for the UN to obtain any semblance of global governance to meet these new challenges, it will have to move beyond its traditional logic and employment of international peacekeeping forces. Sending a sovereign nation‘s uniformed military to keep fighting parties separated will not promote long term peace, economic development, nor aid the cause of individual liberty. While there has been much success gained through the medical, educational, and financial institutions under the UN umbrella, it has not developed the means to protect those investments. The focus of this research effort is to move away from conventional use of military personnel in UN peacekeeping operations and analyze the need for their replacement and enhancement with a permanent UN Police Force. There are two broad obstacles concerning the implementation of a UN Police Force. The first is nothing short of the nature of politics itself. Secondly, and many may consider a product of the former, is the means by which to gain the resources required to field a force capable of meeting the world‘s needs. In both areas, the UN will have to present a case that will be supported by the people and government of its member nations. The Beginnings of Collective Security : The United Nations is not the first organization that has attempted to achieve collective or regional security. History is full of alliances that have been set up at many different levels to protect property, sovereignty, and people. Although there are significant examples of such entities throughout history, the scope of this work can only make a brief mention of the League of Nations and some of the instances and background that has led up to our current situation in the UN. Under the UN, Cold War settings and the different forms of peacekeeping will be addressed. Although there have always been calls for some form of utopian ideal among the fringes of society, the aftermath of World War I allowed for a more open discussion of a better future for the world. The leadership of President Woodrow Wilson helped form the League of Nations following the Treaty of Versailles. This Wilsonian vision of a —supranational organizationâ€Å" failed to gain acceptance in the United States and in its mission. This first attempt at collective security lacked the necessary diplomatic support to secure its objectives and forced nations back to the alliance system in preparation for World War II. The United Nations Early Years While the loss of a generation of European men was catastrophic in World War I, the destruction of property was isolated to the war front. The Second World War saw not only the death of soldiers, but also the death of millions of civilians and entire cities destroy across the world. It comes as no surprise then that there was another outcry for a world body to manage conflict before it spirals out of control. With the close of this second Great War, the birth of the United Nations gained more authority and support than its predecessor. The UN did not immediately find itself at the helm of an efficient collective security system. Instead, it was a pawn in the return to balance of power politics in the bi-polar world between the United States and Soviet Union for the next half century. The end of World War II saw both the birth of the UN and atomic weapons. Between the spread of communism and the efforts of a containment policy, the East-West struggle left the UN with little role other than a forum for heated debate and inaction from the Security Council. According to the UN, there have been 54 peacekeeping operations from 1948 to October of 2000. Fifteen of these operations are current, but only 16 were initiated before 1989. The fall of the Soviet Union and the removal of a bi-polar system that provided supported and control for regional tension left us with what President George Bush referred to as the —new world orderâ€Å". It didn‘t take long for others to coin the phrase New World disorderâ€Å". Peacekeeping Types There are a number of different definitions of peacekeeping. The first is —traditional peacekeepingâ€Å" that was a product of the Cold War. United Nations missions between 1945 and 1988 were designed to keep direct confrontation limited between the US and Soviets. Traditional peacekeeping puts a military force between former belligerents to monitor a cease-fire while diplomatic negotiations are conducted. While this type of operation may still be required on occasion between nations, it can be accomplished with a third country military force as needed. Other definitions of the peacekeeping mission since the late 1980s require some refinement due to the nature of the operations. There are three other definitions of —peacekeepingâ€Å" as they apply to conflicts within a nation or among small, undeveloped countries. These operations are labeled multidimensional peace operations, humanitarian intervention, and peace enforcement. Multidimensional peace operations are similar to traditional peacekeeping, but have an implementation schedule and timeline. A multidimensional operation also involves separating the factions and working towards a peace accord that addresses the underlying cause of an internal conflict. Humanitarian intervention sometimes lacks the consent of the warring parties and is frequently thought to violate a nation‘s sovereignty when there is a desire to maintain an isolationist approach. However, to stop further loss of life or a threat to international peace and security may require such an intervention. The last type of operation to be addressed is that of peace enforcement. In this case, coercive force is used by the intervening parties to suppress conflict in a specific area as a result of genocide or lack of governance. As stated earlier, traditional peacekeeping operations between nation states is not in severe need of change and therefore not the focus of this research effort. It is necessary for the full means available to a modern military to stand between nations on the verge of war. This paper will address the specific requirement of a UN Police Force to conduct the multidimensional peace operations required for the plethora of failed states that have emerged in the post Cold War World. The next chapter will address why the UN should form an international police force and the logic necessary of it‘s member states to support it. The Need for Change The impact of globalization, moving beyond just the idea of universal protection of human rights, and the changing environment of world conflict make the logic of a UN Police Force more relevant now than ever before. The Cold War was an era of strict definitions with regard to international law. In order to protect the East-West alliances, intervention was viewed as illegal and no doubt a threat to the respective power broker. Self-determination, that supported one of the super-powers, and sovereignty of the nation was placed higher on the UN agenda than any abuse of individuals within the state. While it would be easy to say the fall of the Soviet Union has caused this new phenomenon of failed states, there is a deeper cleavage that has been opened up. States fail when they can no longer govern themselves as a result of any number of reasons. Most of the factors that cause a state to fail can be attributed to competition over resources without regard to the rule of law. Resource competition may be over wealth, education, ethnic community, or simply an opportunity to seek a better life. Throughout history the current trouble spots of the world were held together by colonial rule or under the protection of the East-West regimes. Two other reasons that can be attributed to the lack of involvement by the UN and industrialized nations prior to 1989 include the level of information getting into and out of less developed countries before the information revolution. The ability of CNN to flash the first signs of civil disobedience, international crime, and any number of human rights violations to the watching world have forced local, regional, and multilateral agencies to answer to their public. Moreover, the people who once lacked information of the world did not realize just how poor their plight was. The effects of the World Wide Web and globalization have changed forever the way nations and people interact. There is a desire by a vast amount of the world‘s population to experience the freedoms, economic prosperity, and success they see occurring in developed nations. However, the inability of their own infrastructure or political administration is preventing them from instituting laws and an enforcement agency that could lead to a more productive nation. Globalization The spread of technology that has resulted in increased information flow has also fostered the spread of global business. Multi-national corporations are now the rule rather than the exception when it comes to 21st Century business. The reality of a global business community that advances the lives of the population needs the same safe and secure environment to operate that people do. Globalization requires special attention because it is the basis and means for the UN to develop and employ an international police for that protects property rights and individual rights. There has been much discussion over the last decade concerning how to manage the effects of globalization. The rich wish to maintain and improve their current status while the poor seek to find the means to develop. Political focus has usually been to protect the rich nations through laws that affect immigration and import/export barriers. Poor nations are left further behind due to their inability to provide the safe environment and properly suited work force to invite foreign capital as a result of government shortcomings. While many view the spread of industry and markets as a purely business interest, a successful world economy that involves everyone must be supported politically through the establishment of law enforcement. It is the law of the rich nation that prevents market forces from allowing people, prices, and goods to meet their theoretical economic potential. Not all the people and governments of the world view globalization as a desired objective. The use of technology and business to integrate and expand markets can result in a clash of civilizations through diluted customs, ethnic integration, and labor force migration. Traditional sources of revenue such as agriculture and local industry can be moved resulting in dependence on foreign means. In order to achieve an effective world market, while at the same time promoting literacy and awareness through a global information revolution, there needs to be a sense of fairness and security felt throughout the world. The advancement of some countries cannot be at the expense of the majority without inciting resentment and conflict. The UN must use globalization to promote protection of business markets while at the same time using that force to provide the means for ensuring people can live safely and seek better lives through increased access to education, religion, liberty, and means of prosperity. Even though democracy has spread since the fall of communism, it has not brought significant advances to less developed nations. Countries that have seen economic prosperity as a result of globalization have confined that success to a special interest group and not the nation‘s people as a whole. Democracy is not enough to warrant success, —an effective state requires good laws as well as law enforcement that is timely, even-handed, and accessible to the poor. â€Å" United Nations Declaration of Human Rights One of the critical arguments against any type of universal human rights policy and enforcement is that they are the product of the West and cultural exceptionalists choose not to abide by international norms when it is not in accordance with their political agenda. However, as a byproduct of globalization, the world has become a smaller place and nations should no longer be able to hide behind the veil of sovereignty when breaking international laws. —The Universal Declaration of Human Rights and the several ensuing legal treaties setting out civil, political, cultural, and economic rights as well as the rights of children, women, ethnic groups, and religions, were meant to create a global safety net of rights applicable to all persons, everywhere†¦they brook no cultural exceptionalism. The UN now has the obligation to find a means to enforce and promote these rules until they have become commonly accepted by all citizens. Leaving member nations, specifically those on the UN Security Council, to decide when, where, and how human rights and globalization laws are to be enforced will only further delay the advancement of Third World Nations and promote continued armed conflict. The people of the world deserve the opportunity to work t owards their own prosperity. It is incumbent upon governments to ensure an environment free to exercise individual rights and provide a certain degree of protection in life and property. Although there are occasions when direct welfare is required, the issue of direct compensation is a complex one and not in the scope of this research project. Seeking the advancement of a better alternative to the traditional use of national military forces is however. The UN must use the cornerstone of economic advancement to also promote the ideals of individual benefit. An achievable goal is the reduction of armed conflict when nations and their population feel they are reaping the benefits of their labor and exercising individual freedoms. However, the world is controlled by the wealthy nations and the reality is they must be convinced a change to the status quo is required. The Catch-22 the UN faces is finding the trained personnel, finances, and time investment to help developing nations succeed while not promoting themselves as the world protector of global governance. A new UN Police Force is the means by which the developed countries of the world can provide the framework for Third World independence without collective, regional, or unilateral involvement of military forces. Values and Practicalities As the twenty-first century draws nearer we are witnessing an era where foreign policy and international relations are increasingly values-driven. The United States and other major countries form the vanguard of what amounts to a universal crusade to spread doctrines and practice of their version of good governance and democracy, in tandem with wider acceptance of liberal market economic policy as the pathway to modernisation. But a profound paradox emerges here. As the world grows more democratic, so the UN becomes less democratic or at least mired in ays of governance reflecting its formative period, which fail to mirror todays world and relative global influence. Realists argue that there is no correlation between a more democratic world and a more democratic multilateral system; that no intrinsic linkages exist. That is an argument that rests upon the distribution of power and those that want to maintain their built-in advantage. The signs are that the fundamental logic of such an argument will be put to the test sooner rather than later in the century ahead. Critical reflection drives us to the conclusion that despite urgency and obvious need, the UN is probably not going to be reformed in a meaningful way. Differences among member states stemming from power-political rivalries and ideological antagonisms have been fundamental obstacles to UN reform. These differences continue today. Even as the debate between East and West lapsed into obsolescence, the debate between North and South continues, with emphasis on conflicting claims on fundamental values and perspectives. The UN remains a stake and a prize in this escalating debate. Every proposal for change in the organisation is assessed in the light of advantages bestowed upon one or the other side, and everyrecommendation for reform offered by one is predictably resisted by the other. Such a situation has tended to cause political gridlock everywhere. Conclusions The world no longer lacks the economic and technological means to do more than pay ideological lip service to advancing the individual rights and pursuit of prosperity to the global population. The UN must convince the wielders of hegemonic power that they may face the same problems encountered by the Roman, Byzantine, and Ottoman empires if they do not seek alternative solutions to managing world crises. Past and present attempts to quell conflict between less developed nations or manage the consequences of a failed state have not had much success. Results are the continued deployment of combat forces between belligerents in foreign lands. The biggest concern for a UN military force is still one of intervention in a crisis instead of the daily presence required to enforce the law and defuse potential hot spots before they occur. The UN‘s member states are also reluctant to use military forces because there is little support for forcible entry. By having a UN monitored Police Force already present, this obstacle would be eliminated. While the use of deadly force is taught to police forces, it is engrained in the minds of the soldier. The likelihood of excess force and inability to interact with the target population are significant drawbacks to the use of a military force to conduct peacekeeping operations. Other obstacles for a military include lack of continuous presence and the need to return home for national emergencies. Even if there is a long-term military presence, the soldiers are on a rotation schedule that inhibits the contact required to promote trust. A properly trained UN Police Force could mitigate many of these problems. While the idea of a UN Police Force does meet the needs for the establishment of law and order, there are other areas that will require much research and debate. Even after the acceptance of this concept by the world‘s leaders, there will continue to be the same issues that plague every effort proposed by the United Nations. In addition to those seeking the exceptions from universal implementation, the reality of financing, training, organizational structure, appropriate force size, and demographics will need to be addressed. Each of these areas will require their own research and debate. However, this level of detail will only be necessary if the need for a UN Police Force is seen as the best way to protect individuals and economic investment thereby allowing growth and development in our ever-changing world.