The Characteristics that Maintains Quality Culture

6 XSTICS THAT MAINTAINS QUALITY CULTURE I believe most of the company’s have following 6 rules or characteristics that makes a good culture to work with. The seven characteristics are as follows: 1. Expectations :- Each every employerworking  in a company has its own expectations from the company. The company’s culture mostly  depends on  the fulfillment of the employers expectations. Its better to go for excellence and work in such a way that you should be criticized for showing lack of initiative. . Rules :- Generally each and every company has its own do’s and don’ts. Its better for an individual to follow those do’s and don’ts because if they are not followed it’s a  black mark  on the individual character. 3. Interactions :- Generally  employees working  together are  human beings. Every human being should have a attitude of gratitude. For a friendly environment to work on every individual must have some sort of ap preciation for the others.Even it deals with the way how a individual interacts with the Boss and the  management. 4. Dress Code  :- Generally  Dress Code  is what shows personality of an individual. A good wardrobe generally makes it easy for an individual to grow and to show  leadership qualities. So be in  proper attire. 5. Be Fast :- Generally every organization has a very fast paced environment. Many of the individual tasks are deadline-driven. So its better to be in pace with the company’s requirement. . Competitiveness :- Competition, Competition, Competition †¦. This is what you will find everywhere. If you are in a reputed company or an organization than maintaining a culture you must be competitive with the others in every  field. Doing task at a fast paced , learning from experience , finishing most of the projects in a small time shows that you are a competitive person among others. For more of such hot topics read my other posts here :

Swot Target Corporation

SWOT Analysis Strengths †¢ Target Corporation is the second larges retailer after Wal-Mart in US. †¢ Huge market share in US. †¢ Large number of retail networks around 1500 stores. †¢ Increase sales after each year. †¢ Target stores have variety of products which includes clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, and hardware supplies. †¢ It provides very good shopping environment for the customers †¢ Strong distribution channels. †¢ The most recognized corporate logos in United Stated, ahead of the Nike. Target Stores are more attractive then Wal-Mart. †¢ The top seller of Gift Cards in US. †¢ Target is committed to having their location accessible to many of their current and potential guests Weaknesses †¢ Target products are more expensive as compared to competitors. †¢ Limited visibility in In ternational Market. †¢ Target Corporation brand awareness is low as compared to Wal-Mart. Opportunities †¢ Increase market share †¢ To take on competitions plans (i. e. , Wal-Mart) and focus on opening stores in international markets †¢ New locations give Target the opportunity to be diverse in the market.More and more Targets are attaching to trendy malls in different market segments. Threats †¢ Fierce competition from Wal-mart and Costco. †¢ The current recession possibly divert the customer from high price products to low price products. †¢ In some markets, Target's prices are higher than competitors †¢ Terrorism is increasing; security is the main concern of the customers. ? Translate ke Indonesia kekuatan †¢ Target Corporation adalah pengecer kedua terbesar setelah Wal-Mart di AS. †¢ pangsa pasar yang besar di Amerika Serikat. †¢ Jaringan ritel yang besar sekitar 1500 toko. †¢ Penjualan terus meningkat dalam 5 tahun te rakhir. Target memiliki berbagai produk yang meliputi pakaian, sepatu, perhiasan, produk kesehatan dan kecantikan, elektronik, CD, DVD, tempat tidur, perlengkapan dapur, barang olahraga, mainan, persediaan hewan peliharaan, perlengkapan otomotif, dan perlengkapan perangkat keras. †¢ Menyediakan lingkungan belanja yang sangat baik untuk pelanggan †¢ Logo perusahaan yang paling diakui di Amerika Lain dalam perusahaan Retailer. †¢ Toko target adalah lebih menarik maka Wal-Mart. kelemahan †¢ Produk Target lebih mahal dibandingkan dengan pesaing. †¢ Brand awareness Target Corporation rendah dibandingkan dengan Wal-Mart. eluang †¢ Meningkatkan pangsa pasar †¢ Untuk mengambil rencana kompetisi (misalnya, Wal-Mart) dan fokus pada membuka toko di pasar internasional †¢ Lokasi Baru memberikan kesempatan untuk menjadi sesuatu yang berbeda di pasar. Target Semakin banyak melampirkan ke mal trendi dalam segmen pasar yang berbeda. ancaman †¢ Persaingan sengit dari Wal-mart dan Costco. †¢ Resesi saat ini mungkin mengalihkan pelanggan dari produk harga tinggi untuk produk harga `murah. †¢ Di beberapa pasar, harga Target lebih tinggi dari pesaing †¢ Terorisme meningkat, keamanan adalah perhatian utama dari pelanggan. Swot Target Corporation SWOT Analysis Strengths †¢ Target Corporation is the second larges retailer after Wal-Mart in US. †¢ Huge market share in US. †¢ Large number of retail networks around 1500 stores. †¢ Increase sales after each year. †¢ Target stores have variety of products which includes clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, and hardware supplies. †¢ It provides very good shopping environment for the customers †¢ Strong distribution channels. †¢ The most recognized corporate logos in United Stated, ahead of the Nike. Target Stores are more attractive then Wal-Mart. †¢ The top seller of Gift Cards in US. †¢ Target is committed to having their location accessible to many of their current and potential guests Weaknesses †¢ Target products are more expensive as compared to competitors. †¢ Limited visibility in In ternational Market. †¢ Target Corporation brand awareness is low as compared to Wal-Mart. Opportunities †¢ Increase market share †¢ To take on competitions plans (i. e. , Wal-Mart) and focus on opening stores in international markets †¢ New locations give Target the opportunity to be diverse in the market.More and more Targets are attaching to trendy malls in different market segments. Threats †¢ Fierce competition from Wal-mart and Costco. †¢ The current recession possibly divert the customer from high price products to low price products. †¢ In some markets, Target's prices are higher than competitors †¢ Terrorism is increasing; security is the main concern of the customers. ? Translate ke Indonesia kekuatan †¢ Target Corporation adalah pengecer kedua terbesar setelah Wal-Mart di AS. †¢ pangsa pasar yang besar di Amerika Serikat. †¢ Jaringan ritel yang besar sekitar 1500 toko. †¢ Penjualan terus meningkat dalam 5 tahun te rakhir. Target memiliki berbagai produk yang meliputi pakaian, sepatu, perhiasan, produk kesehatan dan kecantikan, elektronik, CD, DVD, tempat tidur, perlengkapan dapur, barang olahraga, mainan, persediaan hewan peliharaan, perlengkapan otomotif, dan perlengkapan perangkat keras. †¢ Menyediakan lingkungan belanja yang sangat baik untuk pelanggan †¢ Logo perusahaan yang paling diakui di Amerika Lain dalam perusahaan Retailer. †¢ Toko target adalah lebih menarik maka Wal-Mart. kelemahan †¢ Produk Target lebih mahal dibandingkan dengan pesaing. †¢ Brand awareness Target Corporation rendah dibandingkan dengan Wal-Mart. eluang †¢ Meningkatkan pangsa pasar †¢ Untuk mengambil rencana kompetisi (misalnya, Wal-Mart) dan fokus pada membuka toko di pasar internasional †¢ Lokasi Baru memberikan kesempatan untuk menjadi sesuatu yang berbeda di pasar. Target Semakin banyak melampirkan ke mal trendi dalam segmen pasar yang berbeda. ancaman †¢ Persaingan sengit dari Wal-mart dan Costco. †¢ Resesi saat ini mungkin mengalihkan pelanggan dari produk harga tinggi untuk produk harga `murah. †¢ Di beberapa pasar, harga Target lebih tinggi dari pesaing †¢ Terorisme meningkat, keamanan adalah perhatian utama dari pelanggan.

Colonial History of Mali

Colonial History of: Mali Mali started out as part of The Ghana Empire which was dominated by the Soninke people up until 1203 when it was taken over by an anti-Muslim Sosso Kingdom. The Mali Kingdom took over from 1230 – 1600 this empire had a lot of influence over West Africa; it began to weaken in the 14th century and was challenged by the Songhai Empire. The two empires ruled over Mali until they were defeated by the Moroccan Saadi Dynasty who controlled parts of Mali until they were challenged by other Kingdoms and this led to Mali falling under many different Kingdoms until it was colonized by the French in 1892.France had taken over most of West Africa at the time and it named the territory taken over in Mali as the French Sudan and appointed civilian governors even though they did appoint a civilian as governor there was still a lot of opposition to French rule. By 1958 French Sudan was renamed to the Sudanese Republic and obtained complete internal autonomy and joined the French Community which meant it supplied labor to French colonies and was given full assistance by France.In 1959 Sudanese Republic was renamed again to the Federation of Mali, one year later the France to let the Federation of Mali to be fully independent, and on 20th of June 1960 the Federation of Mali became fully independent and Modibo Keita was named its first President. After Keita was made President he wanted to move to a more socialist policy which led him to withdraw from the French Community and he decided to have close ties to the Eastern Bloc.In 1967 Mali was forced to rejoin the French Community due to its deteriorating economy. A bloodless coup in 1978 saw a group of young officers set up a 14-member Military Committee for National Liberation (CLMN). This committee tried to improve the economic situation in the country but faced internal political struggles; these struggles have continued over the years and are one of the main issues which Mali faces as a country and has led to a number of insurgencies taking place.

Research Paper on Audition by Barbara Walters Memoir

On Audition by Barbara Walters Memoir - Research Paper Example In Audition, she tells her own story from the beginning in terms of how her parents got together, her life as a child and the feelings she had as a young woman that had minimum guidance and support to rely on. Walters provides a glimpse of her initial days in the broadcasting industry about the manner in which she coped with a media environment that was not characterized with interviews and TV specials. During this initial phase, she was struggling with the pressures of family and home as her career blossomed with NBC (Walters, 2008). It is interesting to note that what was as yet unknown about Walters is revealed in the book by way of her professional tussles with colleagues, which almost made her to quit the profession before she could get a foothold in the industry. This paper examines the determination that Barbara Walters displayed in her work and personal life and how she was able to make it big as a woman in the broadcasting sector that was primarily male dominated. Main Body Barbara Walters initially struggled as a student of literature and grappled as a content writer in a PR agency where she was prepared for her time ahead through the tough training she underwent under William Safire, who was President Nixon’s speech writer and political and language commentator for the New York Times. She went on to become a TV producer, co host and the undeniable queen of TV talk shows. Barbara Walters has done everything in having broken the known gender biases and glass ceiling in the broadcasting industry through her perseverance, finely cultivated social abilities and sharp skills of breaching the on air reporting environment. For her, every day was an audition. In her entire memoir, Walters has been very honest and candid in revealing her personal life and her personal struggles to attain happiness. Despite the fact that her father was a very successful show man during the period, her family had to go through a great deal of financial impediments. It is delightful knowing how Barbara Walters gradually made her way into the NBC network, made money and supported her family in all possible ways. There were instances when Walters was required to save her family from legal, emotional and financial destruction. After she found that her father had not paid a massive tax demand she used her connections to save her father from being sent to jail. Walters shares her feelings in stating that she was not specifically proud of this achievement but was glad to save her father. Her memoir provides a glimpse into her childhood that had a very strong influence on her decision making ability as an adult. In view of her father’s turbulent past she was not inclined to get involved romantically with any man in show business. Walters also had the inclination to make rushed decisions about her personal life but they did not prove successful in the long term. It was this very pattern in her behavior that made her to adopt revolutionary styles of in terviewing, which made her to become the lead female broadcaster of the century. The reader also realizes that despite Walter’s immense success as a broadcaster she had inherent personal problems and insecurity just as normal human beings have. It is impressive to note that she admitted her shortcomings very candidly and provided readers to have a glimpse of the legendry woman that she continues to be. It would have been very simple for an individual writing his or her own memoir

Long-Term Investment Decisions Research Paper Example | Topics and Well Written Essays - 1000 words

Long-Term Investment Decisions - Research Paper Example Internal factors are the factors that are influenced by the business establishment internally while external factors are factors that affect an investment where the business establishment has no control over. An example of such factors is government involvement. Why Government Regulation is or is not needed Normally, market structures and systems are formed by the various aspects of demand and supply. However, governments intervene in the market systems in various ways. Such ways include taxation, subsidies, allocation of rights, and rules and regulations among others. One reason why the United States of America government intervenes in the market economy is to ensure that there is free and fair competition. This, it does in various ways the notable one being putting various rules and regulation in the market economy. This is especially done to allow new business establishments entry into the market. Major corporations are known to merge or acquire another business establishment in o rder to ensure that they maintain their control over the market. This makes it hard for small business establishments especially new ones to enter the market thus discouraging entrepreneurship which repels investments. Another reason why there is the need for government intervention in the market economy is to ensure that indigenous companies and business establishments are safeguarded. This is especially the case when it comes to the farming industry where the United States of America government offers help to farmers through subsidies and tax exemptions to farmers in order for them to compete with International Corporation, which has an advantage of the farmers in terms of various factors such as availability of cheap labor. There is the need for government’s intervention in the market economy when it comes to goods and services which are sensitive to nature. For example, the government must control the production, sale, and buying of firearms and ammunition since this is a n issue which is sensitive. Another sector that the government intervenes as a necessity due to sensitivity is the provision of public services such as health, water, education, security, and electricity. There is need of government intervention is such instances due to the fact that these are human needs that when left to the private-sector control they might lead to chaos due to various factors. Finally, yet importantly, the government intervenes in a market economy to ensure that it has access to enough revenue to meet the country's needs. This is usually done through taxation where the government influences the market economy in order to generate its revenue. The rationale for the Intervention of Government in the Market Process in the U.S The need for government intervention in economic markets in the United States of America provides the rationale for the government’s involvement in the market process in the country. Firstly, the fact that government intervention in the market process in the United States of America results in social equity is a major motivator for the government to regulate the business processes in America.  Ã‚  

Written Assignment 2 Example | Topics and Well Written Essays - 250 words - 1

Written 2 - Assignment Example The genres where Memphis played were country music and blues, although she is widely known for her blues. She plays the guitar, banjo and drums. She learnt to play the guitar at 11 and banjo at 10 years. She also played the electric guitar. In interviews Minnie discussed how men would look down upon her.Her producers said that she was so rough she never took any nonsense from men and would beat them up (Garon, 313). Minnie herself said on a radio show that in some magazines she was described to play the guitar like man (Garon, 314). She did not want that because she knew women were good and should not be compared to men. On the other hand, Minnie says that her career as a woman in a male dominated area has been a good force to girls and women worldwide. She is a role model and a symbol of womens liberation and this has led to many females rising up to the occasion. This has affected her career positively in that she is a celebrity and quite respected for her contributions to the

Smoking and Its Affects on Americans Essay Example | Topics and Well Written Essays - 1250 words

Smoking and Its Affects on Americans - Essay Example This report approves that reasonable persons who happen to smoke, an overwhelming majority, acknowledge that actions such as smoking in a car with the windows rolled up while the kids are in the car is at least a mild form of child neglect. It is unreasonable for citizens not allowed the civil liberty to engage in any activity that does not harm other persons or their property. Smokers have actually become an oppressed minority in the U.S. As an example, smokers are commonly the victims of workplace discrimination due to their unfortunate cigarette addiction. Personal freedoms are an American birthright that is slowly but surely eroding over time. This essay makes a conclusion that smoking is now widely regarded as an activity that can be associated with numerous health risks, not only for the individual engaging in the activity, but also for those who are in the immediate vicinity and thus must partake of what has been termed ‘second-hand smoke’. For these reasons, it has been determined in a variety of different venues and states, that smoking in public and public-use places, such as libraries and government offices, restaurants and shopping malls, should be banned. While restrictions in closed-area spaces may be reasonable and justified, smokers argue that unreasonable restrictions on their freedoms such as enjoying a nice smoke after dinner in the designated smoking section or while outdoors crosses the line of reason and damages the concepts of liberty and personal freedom as defined by the nation’s founding documents.

Importance of Financial Accounting of Government Affairs in World and Research Paper

Importance of Financial Accounting of Government Affairs in World and More Specifically in Africa - Research Paper Example Government accounting is the process that encompasses recording, analysis, classification, summary, communication, and interpretation of financial information about government conduct in financial domain in aggregate. It is detailed reflection of transactions and other economic events involving the receipt, payments, spending, transfer, usability and disposition of assets and liabilities (International Federation of Accountants, 2000). 1.2 Purpose of Government Accounting: Government disclosure in accounting provides citizen evidence and reasoning for the raising of funds from public and donors and domains where the said amount is made useful with its cost and benefits information also exportable from such statements. Government accounting is also an important source of information for national and international investors about how the economy is being run based on internal revenues, local or international debts. Information disclosed in government accounting statements are fulfillme nt of â€Å"their right to know† about the government strategy regarding the accounting and finance of the country (GASB 2006, p. 5). Government accounting, concisely, is required to serve the following three purposes based on their priority (Chan, 2003): BASIC PURPOSE: Basic purpose of government accounting is to prevent and detect public treasury from corruption and graft. Citing report by the International Monetary Fund (IMF) and the International Development Association, Thomas (2001, p. 38) mentioned that countries with heavy debt and poor state of economic stability 'lack the practices and procedures necessary for budgeting, monitoring, and reporting on the use of public resources'. INTERMEDIATE PURPOSE: Intermediate purpose of government accounting is to ensure the robust and thorough financial management of public resources through budget planning and presenting actual activities. ADVANCE PURPOSE: The advance purpose of government accounting is to help government ensu re its accountability to public. To achieve this purpose it is required to have efficiency on three levels; accountability of the bureaucracy to the chief executive, of the executive to the legislature, and of the government to the people. Transparency in government accounts serves to ensure efficiency in economy and a weapon against government theft and frauds. Accounting information can be used to monitor and enforce the terms of economic, social and political contracts; when government conduct any market transaction its information from financial statements can be used for economic accounting of government. Similarly, when government levies any tax to finance its budgetary needs, details regarding its need and benefit can be assessed for political accounting of government (Chan, 2003).Hence, accounting for government is more for accountability as it involves public resources. Acknowledgment of the importance of government

SWOT Analysis of Lionel Smith Ltd Case Study Example | Topics and Well Written Essays - 1250 words

SWOT Analysis of Lionel Smith Ltd - Case Study Example Mr. Smith had worked for sixteen years in the retail clothing business. He gained this experience by working in stores such as Belk's Department Store, Manning Owens Incorporated, and LeGrande's of Aiken, South Carolina. After two years, the partnership was dissolved, Mr. Smith became the sole owner, and LSL was established as a sub-chapter S corporation. This began a period of growth for the company. Between the years of 1979 and 1983, four additional locations were opened. They were located in Aiken and Edgefield, South Carolina, and Augusta, and Savannah, Georgia. By the end of 1983, all four of those locations were closed. Mr. Lionel Smith stated the closings were due to several major factors. They include his inability to hire and retain professionally qualified supervisors and employees, the desire to focus his efforts on establishing an outside sales force, and high interest rates and an unstable economy. In 1982, the main location moved to the other side of Laurens Street in Aiken. The move to the new location was made possible because Lionel Smith was able to purchase the building. This has been the company's only location since 1983. With only one location, its staff and inventory are not divided between two or more venues, and rent, utilities, and other operating costs are lower. The company underwent another major change when it was purchased by Mr. Smith's son, Van, in 1992. Introduction According to the marketing area experts SWOT analysis review for Lionel Smith Ltd. (LSL) the key issues from an analysis of the trade environment and the strategic ability of an organization. The chief objectives of conducting SWOT analysis for Lionel Smith Ltd. (LSL) is to recognize the coverage to which the existing strategy of an association and its more exact strength and weaknesses are pertinent to, and capable of, dealing by means of the changes taking place in the trade environment. It also uses to assess whether there are opportunities to develop further the exclusive resources or core capability of this clothing organization. Moreover, SWOT stands for strengths, weaknesses, opportunities and threats. It's a four-part come within reach of to analyzing a company's generally strategy or the strategy of its trade units. All four aspects have to be considered to execute a long-range plan of action. In order to whack the rivalry you require comprehending SWOT. No doubt, It's a way to examine a company's or a department's place in the market in relation to its contestant. The goal is to recognize all the major factors affecting competitiveness before crafting a trade policy. SWOT Breakdown SWOT recognize the internal and external issue that have an effect on an organization. Here's the breakdown of SWOT by interior and outside variables: Internal factors (Strengths and weaknesses) A corporate structure, culture and resources Shareholders Customers Competitors External factors (Opportunities threats) Politics Technology Society Economics SWOT ANALYSIS Strategy Strengths The first strength of Lionel Smith Ltd.

Corrections Trend Evaluation Essay Example for Free

Corrections Trend Evaluation Essay Corrections Trend Evaluation There have been several assorted and strenuous general directions in the midst of the justice system. These general directions contain several topics and debates over the past years. As a nation individuals then study and perceive that the judicial tribunal method is increasing with time and expanding a diverse outlook to examine a better way to keep going ahead. In fact, a study will explain incorporating the past, present, and future of the development and operation of institutional and community based corrections. In addition, this document will speak of, and examine contemporary and impending concerns facing a place or state of confinement prison management today, and the functions, and concerns of alternate correction systems as an expanding trend. Past, Present, and Future These three general directions belong to the improved function of organizations and areas based on corrections (Muraskim Roberts, 2009). A consideration has built an unbroken extension and growth in places of confinement in the 20 – first century. As the cycles continued individuals transformed, and the justice system continued to go forward in the direction of method familiarization. Society at large and correction will continue to be updated (Muraskim Roberts, 2009). During the 1600s a transgression was revised to decrease transgressions through an improvement that contained help to violators, this contained fewer rough treatments to violators and less sympathetic arrangements (Muraskim Roberts, 2009). In the 1700s dispositions became different, however, places of confinement continued to change and capital punishment continued. In fact, at the end of the 1800s there were occurring dilemmas with the rules. In addition, this was the discipline the inmates received, the popu lation of the inmates, the upkeep of places of confinement, and the circumstances in which the inmates lived. Furthermore, by the 1970s the conventional trends of those periods of intervals became what is known today as the justice system (Muraskim Roberts, 2009). Development and Operations of Institutional Corrections In proceeding years the growth if establishments of institutional corrections left no visualization. The outlook of improvements and procedures of institutional corrections is one of several facts that the prisoners were lodged in situations gloomy and dirty. Prisoners were treated rough, and worked very severe. Although today in places of confinement the population of prisoners is still high the prisoners are receiving his or her justice (Community Corrections, 1998). A right of the prisoners is health care. In today’s places of confinement the systems are not run the same. Governing actions and rules dealing with details of procedures are executed effectively not only by the department but also by the law officials. Prisons today are still over populated but no longer gloomy and dirty (Community Corrections, 1998). In fact, prisoners get three meals per day, showers, recreation, use of the prison library, and some technology. In addition, the significance of health care for prisoners is to guarantee prisoners let go from places of confinement are not in a situation in which he or she cannot mask civilization to deadly illnesses. The places of confinement systems decisive objection is to keep the inmates protected from infliction, and to equip the day – to- day requirements that the system of law enforcement permits. In fact, the judicial tribunal needs to halt the inmates from receiving leisure’s, and concentrate on the concerns of why the violators are incarcerated (Community Corrections, 1998). Development and Operations of Community – Based Corrections Future improvements should be effective and used with changes to adapt to communities. Community – based programs began in the 1950s. In the 60s and 70s the programs came to be numerous goals for individuals responsible for making policies and the system of law enforcement tasks. In fact, community – based corrections are for individuals who are not brutal violators proposed by the judicial tribunal system. In addition, the community – bases corrections aid individuals through special areas of the criminal process (Community Corrections, 1998). Options for community – based programs are compelled to the individual but he or she remains in places of confinement. In fact, individuals awaiting appearances are in the custody of another individual until he or she goes to his or her hearing or judgment. In addition, Global Positioning Systems (GPS) for example, ankle bracelets are used to inform law enforcement officials on the individual’s position. Furthermore, alternative measures are binding agreements the violator’s takes part in to reply his or her violation. Moreover, the felon may settle for advice, aiding in neighborhoods, giving professional duties to the individuals  injured or donate funds, and if the violator brought infliction or damage to an individual he or she may be required to pay back money to the individuals (Community Corrections, 1998). Current and Future Issues Some of the present topics comforting the judicial tribunal and the judicial tribunal managers are accumulations of false unperformed, postponements, and overcrowding. This generates greater dilemmas in the judicial tribunal method because it solemnly jeopardizes the character and bearings of the judicial tribunal. In fact, the judicial tribunal gets backed up on the case that in turn causes the judicial tribunal to play catch up. In addition, the judicial tribunal systems are not laid out to operate under pressure, and the judicial tribunals are not laid out to perform fast tasks on the cases the judicial tribunal have. Furthermore, when the judicial tribunal tried to play catch up on the numerous caseloads it has there is room for error for example; making mistakes (Court Issues, 2004). Another concern that might ascend is the judicial tribunal is behind on cases an agreement that permits a defendant to plead to a lesser charge is expanded. In fact, an agreement that permits defend ants to plead to a lesser charge provides an opportunity for the judicial tribunal to accept a lesser charge for the individuals. In addition, charge bargains are used when individuals accused with grave transgressions the wrongdoings receives an unusual title to create an agreement that permits a defendant to plead guilty to a lesser charge so the case can be resolved. Furthermore, both of these agreements put the protection of the community at risk (Court Issues, 2004). If the judicial tribunal system is pressured it can bring results for the members of the judicial tribunal system. These interferences can lead to law enforcement releasing the convicted individual, more pressure for law enforcement officials to obtain legal punishments for convicted violators, and more formal statements. In fact, there are several ways for the judicial tribunal to relieve the pressures of the judicial tribunal system for example, the use of applied science. The use of applied science aids law enforcement official to hurry the process for the judicial tribunal because the lower judicial tribunals have control over certain regi ons in the judicial tribunal systems for example, unauthorized substances, violence or physical harm to an individual, agreements or conflicts (Court Issues, 2004). In  addition, there are areas that aid in the many fields in the judicial tribunal for example, injury to the body of an individual, medical providers negligence, and work agreements. Agreements between individuals are not as costly, and easier to use than the use of lawsuits (Court Issues, 2004). Furthermore, individuals in places of confinement are under pressure from the penalties he or she has received from the judicial tribunal. Moreover, in places of confinement the prisoners are given the chance to reestablish his or her wrongdoing when he or she if released on parole (Muraskim Roberts, 2009). With several prisoners in places of confinements troubles are likely to occur for example, the deaths of other individuals. This in turn directs additional injury or abuse to prisoners in the set of agencies established by the government. In fact, prisoners are stripped of his or her essential programs and these circumstances affects places of confinement management because he or she has the obligation to make sure that the requirements, manager’s safety, and the day – to – day procedures are taken care of. In addition, officials in places of confinement are obligated for the employees, and the rehabilitation curriculum in places of confinement (Community Corrections, 1998). Places of confinement are putting more tensions on a set of agencies and processes established by the government to control crime. These circumstances affect and expand the expenses of additional places of confinement, and additional inmates. Prisoners who have moderate punishments and prolonged intervals build additional problems in places of confinement. In fact, additional issues include how the general population views the beliefs those inmates receiving help is not enough, and the resolution for prisoners to prevent additional violations (Muraskim Roberts, 2009). Roles and Issues of alternate Correctional Systems There are tremendous dilemmas when bargaining with correctional systems. Individuals locked up in today’s places of confinement are not working as it should be. The government of politics economic system of corrections and the community at some point can devise the remedy. Crime will continue to go up and violators let go can reestablish hazards to community security (Inayatullah, 2002). In conclusion, the significance of the past, present, and future trends of community – based corrections are to comprehend and raise awareness in the United States. The individuals of a city or town need to have freedom in his or her neighborhood and not felt threatened by inmates released early form places of confinement. In fact, the past, present, and future are sets of agencies established by the government. In addition, community – based corrections need to blend more procedures and discover substance plans of procedures. Furthermore, the set of agencies and processes established by the government to control crime began in the 1950s. Moreover, in the 1700s dispositions became different, and by the 1800s there were occurring dilemmas with the rules. References Communtiy Corrections. (1998). John Howard Society of Alberta, (), . Retrieved from http://johnhoward_ab-ca/pub/c29.ht Court Issues. (2004). , (), . Retrieved from http://facutly.ncwc.edu/mstevens.111/111ec09.htm Inayatullah, S. (2002, May). Working report for comment and scenario development Scanning for correctional futures a report for the department of justice Victoria office of the correctional services commisioner, (), . Retrieved from http://www.metafurture.org Muraskim, R., Roberts, A.R. (2009). Visions of change; Crime and justice in the twenty first century (5th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall, (), .

Sainsburys Supermarket Consumer Analysis

Sainsburys Supermarket Consumer Analysis A super market is the One-Stop-provider of almost all the day to day basic necessities of any regular consumer in the given market industry. These necessities include the food items, drinks, toiletries, household stuff etc. Hence all you need to run your houses daily. These supermarkets have now further developed themselves by providing clothings, shoes etc. One of the leading names in the UK supermarket industry is Sainsburys. J. Sainsbury plc is the parent company of Sainsburys Supermarkets Ltd, commonly known as Sainsburys (also Sainsbury and JS); this is the third largest chain of super stores in the United Kingdom with a market share of 16.3%. The groups Head Office is located at Holborn in Central London. 1.2. Operations: Founded in 1869 by John James Sainsbury along with his wife Mary Ann in London and then gradually grew to become the largest grocery retailer by 1922. The company has a chain of stores with 537 supermarkets and 335 convenience stores, hence a total of 872 stores in England, Scotland, Wales and Ireland, including Hypermarkets (super large stores- Sainsburys stores- main plus), Sainsburys Central and Sainsburys local (supermarket and local convenient stores format main mission). The company has been eyeing the opportunity of expanding its business outside the UK. Especially the hyper potential in Asia (especially South East Asia and China). By analyzing Tescos huge success in the market outside UK, Sainsburys venture might not be far away. The Sainsburys family has 15% shares of J Sainsbury plc (as of May 2008) The major family shareholder is Lord Sainsbury of Turville holding 5.83% and Lord Sainsbury of Preston Candover who holds almost 3% of the companys shares. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index (July 12, 2010http://en.wikipedia.org/wiki/Sainsburys) In this report we have analyzed Sainsburys on the basis of its financial performance through Studying its last 2 years financials Making necessary observations Comparing its financial performance with the market leader Tesco Commenting on the strengths and weaknesses as interpreted through their figures / ratios etc. Calculating the WACC for Sainsburys Keeping in view the over saturated industry of supermarkets, it was needed that Sainsburys should venture into something new to increase its profit margins and gives the companys portfolio some diversity. A new project suggesting that Sainsburys should open its Sainsburys Travels and Tours has been discussed and a formal report which analyzes the idea and calculates the projects NPV has been approved by the board and given a go ahead. A format for quarterly report has been suggested for business updates of the new project every quarter. Market Position. The Sainsburys is the UKs oldest major food retailer with their first store opened in 1869. It strives to keep up with its trusted heritage of quality with best services. The management has a continuous approach towards work with responsibility. They attempt to provide fresh food and innovate with respect to customers needs. It serves over 18.5 million customers every week. The large stores offer over 30000 products along with complementary Non-Food products e.g. the TU clothing range which has over 1 million transactions every week. Along with other services, an Internet based shopping service has also been made available, keeping in trend with the changing requirements o the customers, to almost 90% of UK households. In 1995, Tesco overtook Sainsburys to become the market leader, and Asda became the second largest in 2003, demoting Sainsburys into third place. (July 12, 2010http://en.wikipedia.org/wiki/Sainsburys) (http://www.j-sainsbury.co.uk/index.asp?pageid=12) 2. Sainsbury Financial Structure and Performance: Sainsburys is the 3rd largest UK super market with Tesco and Asda as its closest competitors holding positions as No. 1 and No. 2 respectively. Presently Sainsburys is operating in 872 stores across UK with 150,000 employees Sainsburys closes its financial year in the third week of March every year. The tools used are the Income Statement, Balance Sheet, Cash flow statement with the Notes to the Financial Statements. The financial analysis of any company helps determine the financial standing of the company and helps in making decisions and plan future strategy and projects on its basis The financial figures show a reasonable increase in sales. The gross profit showed a decline from 2007 to 2008 but is again on increasing trend in 2009. Balance sheet shows growth in goodwill and shares and decrease in the borrowings. This might have been due to increase in the interest rates. Cash flows show a significant increase in cash in hand which shows the company is stably liquid to handle its operations smoothly. Also the increase is due to sale of its stores. 2.1. Comparison with Market Leader Tesco: 2.1.1. Ratio Analysis: Ratio analysis of any company provides very important information regarding the companys financial standing, financial strengths /weaknesses. They are calculated to compare a companys progress against other rivals of the industry as well as its previous performance. The ratios measure The profitability of the business The Performance The quality of companys performance A companys ability to meet the short term obligations A companys debt burden Value of business / Investment 2.1.2. Management: Tesco is the market leader in UK supermarket industry holding almost 31% of the market. The 1st Tesco store was opened in 1929, in Edgware, Middlesex, UK. Since then it has gradually grown in to being the largest supermarket chain in the UK with almost 2200 stores in UK with over 285,000 employees. Since the mid 90s S, Tesco has been investing in new markets overseas, finding new opportunities for growth and means of generating long term returns for shareholders. The group operates in 13 markets outside the UK, in Europe, Asia and North America, and also announced their entry into the Indian market last year, where they are planning to establish cash carry business. 2.1.3. Financial strength: Both Sainsbury and Tesco have strong balance sheets, equipped with tangible real estate assets. This collateral allows them to borrow at lower rates and generate cash through sale-and-leaseback schemes if required. Both the companys are operating in a saturated market. Sainsburys almost 90% of revenue is consumed in COGS leaving from 5% to 6.5% in lieu of gross profit margin and even the other expenses are insignificant comparatively still the company is left with 1.5% to 1.9% of net profit. For Tesco, the situation is not very different from Sainsburys. Here the gross profit margin is 7% which is a little better from Sainsburys. The current ratios and Quick ratios of both the companys are below 1 which is not a healthy trend. In order to obtain any finance the company should have a stable solvency indicator. The debt ratio indicates that how much of the firms assets are being financed by the debt. Both the companys show a stable debt ratio of 20% to 30%. The debt to equity ratio measures the risk involved in investing in the particular company. Sainsburys shows an acceptable debt to equity ratio of almost 50% but Tesco comparably has a huge debt to equity ratio of 91 which might be because of its full throttle expansion in international markets. Most financiers analyze the company balance sheet before making an investment decision. The prime motive to check if the companys Capital Gearing is right. Capital Gearing is the relationship between Equity and Debt. It is always considered good for a company to have a reasonable Equity base to a business, as insurance against unexpected losses. This is to minimize the risk as much as possible. If a company has a Gearing of no more than 50% 67% of their Gross Assets from Debt, depending on the risk associated with the business, it is considered acceptable. The higher the gearing, the more vulnerable the company is to the impact of increased interest rates. Tesco and Sainsbury both show a sound gearing and though Sainsbury is more healthier to be invested upon, Tesco as well is well within the Good Gearing Grounds The interest coverage of both companys show a very healthy standing to meet their interest payments deadlines. http://www.financesoutheast.com/ From above comparison it is clear that retail industry is highly saturated and it is nearly impossible for the companies to earn super profits. Effective cost control techniques need to be applied and monitored on regular basis to improve profitability. Sainsburys have improved turnover at a rate of 5.5% a year. Profits have grown even faster; increasing by 6.7%. Tesco has a little edge based on earning slightly higher profits and showing rapid growth. Both the companies need to improve upon their debt structuring, especially Tesco and hence gradually improve their liquidity ratios. 2.1.4. Growth potential: So far, Sainsburys has only concentrated on its business in the UK while Tesco has increased its operations in 14 countries. But we should not conclude that Sainsbury is lacking in growth opportunities. Sainsburys has two procurement offices in China but again no one is sure as to when Sainsburys will be able to achieve increased growth and improved profit margin without international expansion. Sainsbury has performed well by adding innovative non-food products and banking services, but competition is tough and increasing in these areas, too Tesco, on the other hand, may have more growth opportunities in progressing Asian market and elsewhere, but its also a much bigger entity than Sainsbury. For example, during last one year Tesco had  £56.9 billion in turnover as compared to  £19.9 billion for Sainsbury. Sainsburys has been concentrating on UK store expansion rather than overseas growth. It has increased the total number of stores from 583 in 2004 to 872 today. Today, Sainsburys need to emphasize on its domestic growth and increase its store efficiencies, which is not an easy task, but it is more achievable than managing and controlling a group of international locations with diverse tastes and demands. http://www.tescoplc.com/plc/about_us/strategy/international/ http://www.fool.co.uk/news/investing/company-comment/2010/07/16/a-foolish-fracas-sainsbury-vs-tesco.aspx 3. Weighted Average Cost of Capital: Debt Equity 2,357 (Long term debt) 18.64m (shares) * 345 (share price) = 6,431 3.1. Equity: No. of shares outstanding: 1,864 (m) Current market price per share: 345 Market Value of equity: 1,864 * 345 = 6431 http://www.google.com/finance?q=LON:SBRY http://www.digitallook.com/companyresearch/10079/Sainsbury_(J)/share_prices.html http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/ http://www.j-sainsbury.co.uk/index.asp?pageid=23 We calculate the cost of equity through Dividend Growth Model Which is Ke = [Do (1 + g) / (MV-Ex Div)] g Where Ke = cost of equity Do = Dividend given = 14.20 (pence) MV = Market value = 345 (pence) Ex. Div = Ex Dividend = 10.20 (pence) g = growth rate = 7.6% Cost of equity: [14.20(1+0.076) / (345 10.2)] 0.076 Ke = 12.11% 3.2. Debt: Book value of Debt: 2,135 1,074 @ 4.98% 861 @ 2.36% 171 @ 4.25% 251 @ 4.3% Kd = 3.90% http://www.j-sainsbury.co.uk/ar10/downloads/pdf/Sainsburys_AR10_note_20_borrowings.pdf 3.3. WACC: V K V * K Debt 2357 3.90% 9192 Equity 6431 12.11% 77879 Total 8788 87071 Sum VK / Sum V = 87071 / 8788 = 9.91% 4. Project: 4.1. Opening up of Sainsburys Travel and Tours: Sainsbury has always aimed to be the consumers first choice for food, delivering quality products with great service at a competitive cost. The company is striving to achieve the objective of leading margins with diverse market and delivering strong profits every year. The values of Sainsburys are defined in their website as The values of the Sainsburys brand passion for healthy, safe, fresh and tasty food, our focus on delivering great products at fair prices, a history of innovation and leadership and a strong regard for the social, ethical and environmental effects of our operation have continued to stand the test of time. Five principles are at the core of Sainsburys business: The best for food and health Sourcing with integrity Respect for our environment Making a positive difference to our community A great place to work. These principles provide differentiation from our major competitors and define and direct all our activities. http://www.j-sainsbury.co.uk/index.asp?pageid=14 Keeping the tradition of the best services, the management has decided to venture into the ever growing market of Travel and Tourism industry with opening up of Sainsburys Travels and Tours. The idea of opening up a Travel Services business branch of Sainsburys is based on the news of Sainsburys opening up its Travel Clinics in mid 2008. The clinics were established in outlets initially offering free consultation with nurses offering different injections and health products with advise for people travelling to countries requiring vaccinations and immunization from infections like flu, malaria etc. These products were offered at significantly cheaper prices than in any specialist clinics. http://www.holidaylettings.co.uk/resources/industry-news/general-travel/sainsbury-s-launches-travel-clinics-in-21-of-its-supermarkets/a-3-143-1264/ The Sainsburys Travels and Tours will provide the company to excel and achieve its strategic goals on the basis The supermarket industry has become fairly saturated in the UK and at present Sainsburys is eyeing to expand itself in the International market but it will be a while before it actually does. The Travel industry is a growing market and has a huge potential of growth. The new product will benefit the company earn huge profitability margins which are becoming hard to achieve I the supermarket industry. The Sainsburys has a huge loyal customer base which will be utilized for promotions and marketing purpose. The project has a high probability of success given a chance of a fresh new product offered by a supermarket chain. The company will use its existing huge customer base for the travel services marketing and promotion. The existing nectar loyalty card database will help the management to design the product, offerings, travel and tour packages as per the preferences. 4.1.1. Project Description and Key Elements: The project will have a Head Office (With the existing HQ of Sainsburys at Holborn Circus, London) have initially total 3-4 rooms allocated. The HQ office will have 7 employees. Initially only limited stores and selected cities will be setup with the Sainsburys Travels and Tour Desk with one person behind the counter. The Six major cities (with respect to area / population) i.e. London, Birmingham, Manchester, Glasgow, Belfast and Cardiff covering the whole of UK will be set up initially for kick off of the Travel and Tour Services. 10 stores in London and 5 stores in the remaining cities will be setup for providing the services. Each of these cities will have a team of 2 people, 1 within the store premises (as mentioned above) and the other for monitoring and reporting purpose. The number of employees will gradually be increased as per requirements with the project evolvement. http://www.ukcities.co.uk/populations/ 4.1.2. Initial Investment Cost: Initial Investment Cost Cost of IATA Membership (http://www.iata.org/membership/Pages/fees.aspx) 33,500 GPB Total Staff 27 Computers http://www1.euro.dell.com/content/products/features.aspx/iip_notebooks?c=ukcs=ukbsdt1l=ens=bsdCID=41142LID=1069631DGC=ST 650 * 27 = 17,550 GBP (including VAT and Delivery) Server http://configure.euro.dell.com/dellstore/config.aspx?b=c=ukcs=ukbsdt1l=enoc=PE2T610Rs=bsd 2,800 GBP (including VAT and Delivery) Software http://www.britishsoft.co.uk/?gclid=CMmGudvPgaMCFSU_lAodWH6Zdg 940 GBP (including VAT and Delivery) Total Initial Cost 54,790 GBP 4.1.3. Other Costs: Type of cost Cost Amount Remarks Salary for 1st year 450,000 Inc. of 7.5% each year Brochures / Stationary / Equipment 20,000 Inc. of 10% each year Marketing Budget 250,000 Inc. of 15% every year 4.1.4. Assumptions: We assume that Sainsbury will initially target the high spenders from its customer database and target them for the promotions and marketing materials (leaflets etc.) Initially the holiday packages and tours will be offered for 5 big holiday destinations including Egypt, Turkey, Tunisia, Barbados and Spain. The packages the calculations are based include a general deal for 4 people for 7 days. The holiday packages for these destinations cost as follows (based on holiday packages offered by Expedia. Destination Price for Customer (average) http://packageholidays.expedia.co.uk//tt.aspx Actual Cost (with Sainsburys profit margin @ 24 (Price 24%) http://www.thomascookgroup.com/annual-reports Egypt 1150 (GBP) [ 286.5 GBP per person] 874 GBP Turkey 728 (GBP) [182 GBP Per Person] 553 GBP Tunisia 1200 GBP [ 300 GBP per person] 912 GBP Barbados 3120 GBP [780 GBP per person] 2371 GBP Spain 1000 GBP [ 250 GBP per person] 760 GBP We assume that Sainsbury will succeed on selling on 110 of these above mention packages for each country. Annual Revenues will be 718900 GBP We assume that annual revenues will increase by 12% (2% more than the average growth in Sainsburys revenues which is 9.4% given the growth potential in the industry) Operating cost will include the salaries of the employees, day to day business running expenses etc. since we are sharing the premises of existing Sainsburys stores and HQ so there will be no extra operating cost except the salaries. As per the National Statistics Online, the Consumer Price Index (CPI) is at 3.2% and the Retail Price Index (RPI) is at 5.0%. http://www.statistics.gov.uk/cci/nugget.asp?id=19. The growing inflation rates have a direct negative effect on the customers ability to spend on leisure and holidays. Although consumers have gradually developed this sense of planning ahead and saving for their Holidays. Effective Tax rate of 28% is applied. http://www.hmrc.gov.uk/rates/corp.htm 4.2. Identification of Risk and Uncertainty: In any new project, one is never sure about 100% results. If the project is based on Risk then we might expect somewhat certain results based on previous data. The cash flows based on Risk might be forecasted and the associated possibilities are also known but in case of uncertainty the outcome is unknown and hence the related probabilities are also unknown. A study conducted with a few managers showed that they think risk is manageable if you have right information, sufficient knowledge about the project, and if the person is experienced in the particular field. Most of them stressed on the importance of alternatives, collecting more information and checking different aspects of the problem, along with being actively involved to reduce the risk.. (IAENG International Journal of Computer Science, 32:4, IJCS_32_4_12) It is the attempt to manage both the known-unknowns and unknown-unknowns. Preparation for and managing the risk is the result of what is unsure and unknown-decision risk. 4.2.1. Affects of Risk and Uncertainty on proposed project: Lets consider the following aspects while making decision based on risk for the Sainsburys Travels and Tours What can go Wrong? The Sainsburys already has an established huge no. of loyal customers who would be happy to have an option o a different kind of service offered from their trust worthy service provider. The expectation for a stable turnover is based on the fact that it is an established name offering a new product on the basis of its goodwill. How likely it is to happen? The expected growth can be effected by increasing inflation rates. The Travel Industry faced a huge blow after 9-11 incident. What are the consequences? Any unforeseen incident like this (God forbid) will have long lasting effects on the companys growth, profitability and future expansions and plans. http://www.robustdecisions.com/decision-making-tools/risk-vs-uncertainty.php 5. Calculation of NPV: NPV is a technique where cash inflows which are expected in comming years are discounted back to their present value. This is calculated by through a discount rate equal to the interest that was to be received on the sums, in case the inflows had been saved, or the interest that has to be borne by the firm on the borrowings. In case of more then one project appraisal, the firm should choose the one that produces the highest NPV. 5.1. Sainsburys Travels and Tours Expected Cash Flows (for 3 years): The project has a positive NPV which is a healthy sign for the project. It can be proceeded with. The project is going to be beneficial for the company and add to the shareholders value. A positive NPV means that the project is worthwhile because the cost of tying up the firms capital is compensated for by the cash inflows that result. http://www.bized.co.uk/timeweb/reference/using_experiments.htm 6. Quarterly Report Format: As per the requirement of the board every quarter a report has to be sent for updated performance and progress information. The report has to serve the purpose of giving a complete up to date data to be analyzed by the board. A company analysis gives a complete performance and financial picture of the company. The report should include all the data necessary to quickly compare it with the major competitors. 6.1. Reporting Layouts: The report will be in Excel sheet format. The Information provided will be in different excel sheets in the same document each covering a preceding quarter to give convenient comparisons Title of the report: Sainsburys Travels and Tours Addressed to: Date: from -/-/- to -/-/-: Date of submission: Submitted by: 6.1.1. Holiday Packages Bookings: 6.1.4. Comparison of Actual and Forecasted performance: The calculation of the Sainsburys Travels and Tours project NPV has been made by going through the three years forecasted figures of the company which show that it is progressing towards a high performing entity with reasonable growth in profit. Although with the growth of the company eventually it will require to use more resources in term of offices, employees, equipment, marketing budget etc. but the current performance clearly suggests that it will very strongly bear all the changes and keep on showing a steady growth. 7. Conclusion: Sainsburys is one of the key players of the existing supermarket industry in UK. This report gives an overview of its performance during the last couple of years, dealing with the financial figures we have tried to analyze the financial standing and strength and the comparison with the main market leader Tesco gives a fair idea of both the companys approach towards business. Although Sainsburys has not yet ventured into the International market but the step might not b that far away keeping in mind the huge success TESCO has had in the international market. Sainsburys has a huge loyal customer base. The suggested new service product through Sainsburys Travel and Tours will provide these customers to utilize yet another trustworthy service by their trusted name. The growing Travel and Tours market will definitely have a positive effect on the Sainsburys portfolio by increasing its profits and hence strengthening its business.

Care Theory for Adults With Learning Disabilities

Care Theory for Adults With Learning Disabilities Critically discuss care theory in relation to social work with adults with learning disabilities. Social work has undergone a radical transformation in the last two decades. Today ideas about the multi-layered nature of disabilities and the complexity of needs are commonplace in the public discourse on welfare and social work. People with learning disabilities and their carers and families have formulated their urgent demands upon society while academics and practitioners have supported this re-shaping of the social care agenda and the government has attempted to integrate the various challenges and interests in new and significant policy documentation such as Valuing People (2001). This essay will deal with three interrelated issues that are of particular importance to people with learning disabilities and their quality of life. It will (1) explore the relationship between care theory and the issues of ethical practice when dealing with adults with learning disabilities. It will look at the rules of engagement that have found their way into the various codes of practice for soci al work practitioners and the ethical problems that they may give rise to. And (3) it will consider the link between anti-discriminatory practice and the rights that service clients have and how these rights may influence the way in which practitioners may discharge their responsibilities throughout the social service sector. Within the confines of this essay, (1-3) will be examined through the following lens. Given the existing code of practice and policy stipulations, what could self-determination mean for people with learning disabilities? And how do ethical difficulties find their expression in particular practices of social work for adults with learning disabilities, such as person-centred planning and direct payments. There have been several attempts to regulate and standardise work practice for employees and employers of social work practitioners in the UK. These attempts have deep historical roots, such as the Hippocratic oath (Loewenberg 1992: 36). Yet the more recent attempt by the Scottish Councils to draw up a conclusive list of responsibilities and duties of social workers and their employers has been triggered by the desire to introduce reliability and transparency into a field of social care which has hitherto featured a plethora of often conflicting norms and standards. The code of practice sets out (for the first time) the expectations, obligations and duties under which social workers and their employers ought to operate. It is supposed to be the initial step in a broader process of standardisation of the social services (Codes 2001: 13). It echoes the definitions of the nature, aims and guiding principles of social work given in the Code of Practice by the British Association of Socia l Workers (BASW 1986 and Codes 2001). The various values that inform social work are human dignity and worth, social justice, service to humanity and integrity and competence of practitioners (BASW and CoP) In particular, the Code emphasises the right of individuals to control their lives and the obligation of social workers to promote the right to self-fulfilment by clients (Codes 2001: 15 and BASW 1986: 2). This agglomeration of values and norms that ought to inform social care practice however raises some serious questions when it comes to their application in the social work with people with learning disabilities. First of all, it is generally acknowledged by analysts of the service as well as by practitioners that the particular interpretation of the notion of self-determination is a culturally contingent idea. Loewenberg as well as Watson acknowledge that the ethical principles and rules of social work are derived from societal norms (Loewenberg 1992: 38; Watson 1985: 22). However, modern society encompasses a multitude of often conflicting social norms and it is this plurality of notions of a good life and standards of social agency which creates problems. The code explicitly urges social service professionals to take account of their client’s understanding of self-determination and individual independence. Yet, within a culturally diverse population, different notions of what is acceptable and desirable with respect to the independence of people with learning disabilities prevail. To promote independence of an adult or child with learning disabilities in a community that traditional ly places a fundamental emphasis on continuous care within the family can pose a particular dilemma to social workers. More generally, however, governmental policy and the codes of practice can produce significant problems for social care workers. The government has made inclusion one of the main policy priorities with regard to people with learning difficulties. Mainstreaming employment for individuals with learning disabilities is a pillar of this new approach. However, the competitiveness of the first labour market has traditionally represented a considerable barrier to finding viable employment for people with learning disabilities or emotional behaviour problems. Social care workers are tasked to identify problems that impact on the quality of life and decrease the chances of self-fulfilment for their clients. But often they are neither trained nor have access to resources in order to identify and put in place support programmes that ensure that adults with learning difficulties can find employment in the first labour market. The compartmentalisation of services continues to produce additional b arriers that prevent social care workers from discharging their duties with regard to their clients. Let us consider an example. Let us suppose that a social worker has the responsibility to support some individuals with learning disabilities which live in group homes (Beckett 2005: 138). One of the residents approaches him and tells him that she has got into a muddle with her benefits with the result that she has run out of money and is very distressed about this. The social care worker calms her down and places some phone calls to the local benefits office and sorts it out for his client. In a way, the social worker ‘has respected [the client’s] wishes and done exactly what she asked of him. Has he therefore supported her right to determine her own life?’ (Beckett 2005: 138) His commitment to support her desire to self-determine her life here clearly conflicted with her desire to draw on needed support. The real crux of the problem however lies elsewhere. The client has been unable to get sufficient support from the benefits office and therefore felt unable to sort out the issue on her own. In fact, the lack of adequate support on the side of the benefits office, possibly the absence of a trained worker in the office who has the skills and training to deal with people with learning disabilities has made it impossible for her to deal with it independently. Additionally, the social worker may have chosen to limit his support by assisting her in dealing with the benefits office rather than sorting it out himself. In this way, policy and practice may substantially collide when it comes to practical issues for individuals with learning disabilities. The codes of practice fail to give any meaningful guidance in these cases. This criticism is not new. Academic observers have repeatedly noted that the codes of practice are too abstract and cease to have any meaning unless sufficient resources are made available to enable service professionals to act in a positive way towards service clients (Watson 1985: 31). More worryingly, Watson writes: ‘the abstraction of the code of practice renders principles not simply incapable of application, but capable of application in a number of ways – only some of which are consistent with the conception of professional social work.’ (Watson 1985: 31) Again, this gives rise to some serious problems with regard to care for people with learning disabilities. Let us consider another example. The conception of self-determination as enshrined in the Codes of Practice draws on culturally contingent notions of autonomy. On the other hand they also pay respect to the need to recognise other culture’s diverse social commitments. The code however fails to recognise that these two principles conflict. For some families and carers who belong to ethnic minorities, service support may be seen as contradicting cultural norms and standards and the family may be the preferred vehicle for support. Societal inclusion and integration in the wider community may therefore be barred as an option. Social workers are in a dilemma here. It is their obligation to promote the self-determination of their clients, this however may contravene the cultural and religious norms prevalent in some families. This demonstrates that the Codes of Practice are bas ed on an understanding of social life that is predominantly Western in character. Different stipulations of the Code are therefore inconsistent with each other. As Beckett writes, the notion of individual autonomy may be differently stressed in the various cultures (Beckett 2005: 132), Often the rights of individuals with learning disabilities may run counter to the interests of the rights of particular groups or communities (Beckett 2005: 132). The second way of framing the idea of social care and its conflict with particular practices is utilitarian in nature. Social workers and their management may be led by calculations of expediency in determining the right way of dealing with problems of people with learning disabilities. Resource allocation and budget constraints are the primary factors in these considerations. This approach is however often detrimental to the interests of adults with learning disabilities. Their interests are defined through the limitations and budgetary restrictions that are placed on the service. The individual with learning disability is not placed at the centre of planning and support packages. One particular practice has tried to square the constraints placed on the service with the ethical demands under which social workers operate. Direct payments have been actively promoted by central government and are often seen as a way to empower clients with learning disabilities. They are considered as an appropriate means to re-focus the delivery of social services on the needs of the individual with learning disabilities as well as represent a viable answer to the resource allocation problem. Clients are granted a particular budget and exercise total control over its spending. Adults with learning disabilities become buyers in a market of social and care services, or so the theory goes. At a first glance this will alleviate several acute problems. It enhances the (chances for) independence of clients and motivates them to make their own choices about important life decisions. It increases their participation in the decision making process and improves quality of life. It also ef fects a significant shift away from total care packages which are expensive to the tax payer and facilitates the involvement of clients in more task-centred care packages which are less expensive (Mansell 2005: 20). It therefore adequately and neatly addresses resource constraints while mirroring the move to individualised care and support plans (Mansell 2005: 20). This way it mirrors the stipulation of the Code of Practice which places the duty on social workers to maximise participation of clients in the decision making process (BASW 1986: 5; Codes 2001: 16). However, it works with a very lop-sided notion of independence. While participation in the labour market may still be prevented to clients with learning disabilities, acting as a buyer in an economic relationship is seen as a form of empowerment. The conception of social agency is severely restricted to co-operative schemes that are economic in character. The enhancement of social involvement may benefit little from this. This demonstrates that ethical issues in social work are often critically influenced by practices that are understood to reflect universal cultural attitudes but, more appropriately, may only resonate with erroneous and impoverished notions of social agency. Bibliography Beckett, Chris and Andrew Maynard (2005), Values and Ethics in Social Work. An Introduction. London e.a.: Sage British Association of Social Workers [1986], A Code of Ethics for Social Work, Birmingham: BASW Codes of Practice for Social Service Workers and Employees (2001), Scottish Social Services Council, Dundee 2005 Loewenberg, Frank M. and Ralph Dolgoff (1992), Ethical Decisions for Social Work Practice, Itasca: F.E. Peacock Mansell, Jim and Julie Beadle-Brown (2005), Person Centred Planning and Person-Centred Action. A Critical Perspective, in Person Centred Planning and Care Management with People with Learning Disabilities, London and Philadelphia: Jessica Kingsley, pp.19-33 Watson, David (1985), What’s the point of A Code of Ethics for Social Work? In A Code of Ethics for Social Work. The Second Step, edited by David Watson, London e.a.: Routledge and Kegan Paul, pp.20-39 Valuing People (2001). A New Strategy for Learning Disability for the twenty-first century, London: The Stationary Office

The United States and the Era of Imperialism Essay -- American History

The United States and the Era of Imperialism Never interfere with Europe was the cry of the founding fathers. Our very first president, George Washington warned us not to get involved with foreign powers. The spirit at the time of our nation’s birth was isolationism. The infant United States of America could not afford to get it’s hand caught in the cookie jar of world affairs. As children grow they get stronger, and the growth of the United States was no different. By the end of the Civil War the United States had muscles to flex. At the time the world was enthralled in the Age of Imperialism, in which a nation’s power was derived from it’s overseas holdings. The United States, who had just proved that it could beat itself up, was not going to be excluded from imperialistic contest the world arena provided. So, the United States was ushered into the Era of Imperialism. There are several reasons why the United States sought to found an empire. For theses reasons, American began it’s divine quest. Foremost were the economic prospects of empire. There were several commercial and business interests involved with the American imperialist movement. Overproduction in America caused economic depressions. In order to curve these slumps, America needed new markets. Also, as American business increased there was an ever-growing demand for raw materials. America glanced heavily at the potential of the Far East, especially China, and it’s southern neighbor Latin America as a new market, and a source of raw materials. These are the economic factors that contributed to the rise of American imperialism. For military and strategic reasons America needed to forge and empire. In 1890 Thomas Mahan published Influence of Sea Power upon History 1660 - 1783. In his book Mahan pointed out that Great Britain’s phenomenal growth as the world power was because of it’s unsurpassed naval power. America saw that in order to become a world power, it needed to expand it’s own navy. In order to maintain this new navy, America would also need to increase the number of harbors, refueling and repair stations, and trade ships around the globe. America also came to realize that the Pacific and Atlantic Oceans needed to be connected closer to home. This raised the demand for an isthmian canal. These are the military and strategic exponents that sparked America to... ...rican interests abroad. Taft would use â€Å"dollar diplomacy†, and the Roosevelt Corollary in Nicaragua and other Latin American countries to further protect American business investments. The U.S. got a late start in the race for trading rights with China, and with the U.S. now in the Philippines, the race became economically crucial for America. By this time, Great Britain, France, Russia, Germany, and Japan claimed exclusive trading rights with China within their sphere of influence. Some, like Japan, even claimed parts of China as their own. In order to level out the playing field Secretary of State John Hay sent diplomatic dispatches to these nations, urging an Open Door Policy, in which there would be equal trading rights with China. All the dispatches came back to Hay with their corresponding nations endorsing the proposal. However, before the policy was enacted, the Chinese tried to expel the â€Å"foreign devils† from their homeland in what was to be called the Boxer Rebellion. This nationalist rebellion was put down by an international police force including 2,500 U.S. troops. These actions of intervention in Latin America and China were part of American imperialism.

Star Wars :: Essays Papers

Star Wars Star Wars is a science fiction adventure novel. The symbolism and characterization was really excellent in the story. The story gives a great look into the future as it has many different types of things we have not yet invented; blaster rifles, space ships that go the speed of light, fat alien slugs, and beam swords. The plot of the story sucks you into the novel and makes you want to continue reading the novel. The plot of the story mainly reflects on a young boy, Luke Skywalker. Luke was raised on his Uncle's moisture farm on the planet Tatooine. He meets up with Obi-Wan Kenobi by following a droid, R2-D2, he had purchased through a small natives of Tatooine known as Jawas. R2-D2 believes he is the property of Obi-Wan and decides to search for its master. Luke is attacked by another group of natives, Tusken Raiders also known as sand people. Obi-Wan comes and saves Luke from the sand people and take him back to his home. Obi-Wan tells Luke a little about his father. He tells Luke that his father was his apprentice in learning the ways of the "Force". Obi-Wan gives Luke his father's old light saber and Obi-Wan finds something inside R2-D2. It is a message from Princess Leia. She sent the two droids, R2-D2 and C3-PO, to send this message to Obi-Wan. Luke and Obi-Wan head back to Luke's house and find a Sandcrawler, a vehicle the Jawas travel in, destroyed. Luke thinks that some Tusken Raide rs did this, but Obi-Wan points out that Imperial Storm Troopers have attacked the Jawas. Luke then finds out that his uncle and aunt are dead. He then decides to train to be a Jedi Knight. They head to a Mos Eisley, a spaceport to search for a pilot to get them to the planet Alderaan. Obi-Wan and Luke meet up with a smuggler named Han Solo and his co-pilot, Chewbacca the Wookie also known as Chewie. They make a deal for Han to take the two humans and the two droids to Alderaan. While preparing the ship Han runs into a crime lord, Jabba the Hutt. Jabba was mad at Han for dropping off his shipments and running with out paying him. Han promises Jabba he will have his money soon and a little more. As they start boarding the ship some Storm Troopers find them and started attacking.

Housing Finance

[pic] [pic] [pic] BY: SHALEEN BAWEJA (15946) PUROO SONI (15907) DIWAKAR ANAND (15912) MUDIT KALRA (15918) AMAN ARORA (15944) ACKNOWLEDGEMENT We as a group would like to express our sincere thanks to MR. KUMAR BIJOY our FINANCIAL SERVICES faculty for helping us study the subject in depth thus giving us a wholesome experience. We also express our gratitude towards COLLEGE OF BUSINESS STUDIES for giving us the opportunity to work on the project. INDEX S. No. PARTICULARS PAGE 1. PROFILE OF NATIONAL HOUSING BANK 4 2. WHY HOUSING FINANCE IS IMPORTANT? 7 3. HOUSING & GDP 8 4. TYPES OF HOME LOANS 9 5. HOUSING FINANCE COMPANIES IN INDIA 11 6. SUMMARY OF FINANCIALS OF SELECTED HOUSING FINANCE COMPANIES 21 7. REVERSE MORTGAGE LOAN 22 8. HOUSING FINANCE- SCOPE IN INDIA 24 9. ASSESSMENTS & PROSPECTS 30 10. FUTURE EXPECTATIONS 32 11. LIMITATIONS OF HOUSING FINANCE 33 12. ANNEXURES 35 PROFILE OF THE NATIONAL HOUSING BANK The National Housing Bank (NHB) was established on 9th July 1988 under an Act of the Parliament viz. he National Housing Bank Act, 1987 to function as a principal agency to promote Housing Finance Institutions and to provide financial and other support to such institutions. The Act, inter alia, empowers NHB to: ? Issue directions to housing finance institutions to ensure their growth on sound lines ? Make loans and advances and render any other form of financial assistance to scheduled banks and housing finance institutions or to any authority established by or under any Central, State or Provincial Act and engaged in slum improvement and Formulate schemes for the purpose of mobilisation of resources and exten sion of credit for housing OBJECTIVES NHB has been established to achieve, inter alia, the following objectives: ? To promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. ? To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups. To augment resources for the sector and channelise them for housing. ? To make housing credit more affordable. ? To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act. ? To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country. ? To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing. BUSINESS ACTIVITIES NHB, as the Apex level financial institution for the housing sector in the country, performs the following roles: ? Regulation and Supervision NHB exercises regulatory and supervisory authority over the HFCs in the matter of acceptance of deposits by them pursuant to the powers vested in it under the Act. As per the amendments to certain provisions of the Act, which came into effect from June 12, 2000, NHB is vested with powers to grant Certificate of Registration to companies for commencing/carrying on the business of a housing finance institution. Besides, NHB regulates the deposit acceptance activities in accordance with the Housing Finance Companies (NHB) Directions, 2001, amended from time to time, in the matter of ceiling on borrowings (including public deposits, rate of interest, period, liquid assets, etc). NHB has also issued Directions on prudential norms in regard to capital adequacy, asset classification, concentration of credit, income recognition, provisioning for bad and doubtful debts etc. NHB supervises the working of HFCs through on-site inspection and off-site surveillance. ? Financing NHB raises resources for the housing sector towards increasing new housing stock and provides refinance to a large set of retail lending institutions. These include scheduled commercial banks, scheduled state cooperative banks, scheduled urban cooperative banks, specialised housing finance institutions, apex co-operative housing finance societies and agriculture and rural development banks. Refinance is provided by NHB under various schemes, which are formulated taking into account, several aspects of the National Housing Policy, the constraints facing the sector etc. NHB has also a window for direct lending to Public Agencies such as, State Level Housing Boards and Area Development Authorities for large scale integrated housing projects and slum redevelopment projects. NHB is also operating a special window for extending financial assistance to the people affected by natural calamities viz. earthquake, cyclone etc. ? Resources of NHB NHB raises resources from diversified sources, both domestic and external by issuing Bonds/ debentures, borrowing from RBI and financial institutions/organisations etc. Under the Act, NHB is authorised to issue and sell Bonds with or without the guarantee of the Central Government for the purpose of carrying on its functions. ? Rural Housing NHB launched the â€Å"Swarna Jayanti Rural Housing Finance Scheme† to mark the golden jubilee of India's Independence. The Scheme seeks to provide improved access to housing loans to borrowers for construction/acquisition/ up-gradation of a house in rural areas of the country. Statistics Comparative Data on Housing Finance Disbursement Housing Finance Companies (Amt in Rs. crore) July-Sep 2003  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   July-Sep 2004 UNIT |AMT   | | 101182 |5207. 42 | |UNIT |AMT   | |104225 |6286. 15 | Why housing finance is important? Perhaps few things are more developmental than housing. Given its linkages to many sectors in the economy – including land markets, construction, and labour markets – housing finance is key to econo mic growth. It has been estimated that there are roughly 600 other industries that have links to the housing markets. A stimulus to the demand for housing will have a direct or indirect stimulatory impact on all of these industries. The availability of mortgage financing also stimulates the construction of new housing units. House construction and related industries are labour-intensive and thus provide significant employment opportunities; thus, a greater demand for housing provides a very large economic stimulus to the broader economy. There are also numerous other societal and Developmental benefits to providing decent living space to the poorer segments of society, which are our principal target markets. Productivity and employment are very often enhanced by providing a living space close to where people work. IMPORTANCE OF HOUSING SECTOR IN INDIA ? Income Generation It is estimated that the construction sector’s income multiplier is around 5, while construction related manufacturing has an income multiplier of 7. 6. ? Employment Generation Today, there are 2. 5 cr. construction workers in the country. In terms of direct, indirect and induced employment generation, the construction sector’s employment multiplier is 7. 76. ? Revenue Accruals to Government An investment of Rs. 100 generates Rs. 11. 4 as revenue to the Government in the form of sales, excise taxes and octroi. ? A basic human necessity supporting economic activities. ? Have forward and backward linkages with over 250 ancillary industries. ? Every Rupee spent on construction, an estimated 75-80 paise is added to GDP. ? Housing Industry Growth in last 5 years – Physical Terms 3. 0 % p. a. Financial Terms 30% p. a. ? Contribution of Housing in GDP is about 6%. ? Percentage of Mortgage Debt to GDP is 8. 0% (E) in 2005-06, still way below China’s (12%), Malaysia (22%), Hong-Kong (40%) and US (65%). ? An engine of equitable economic growth – Investments, Savings.. Housing and GDP Housing construction contributes approximately 1-2% to India's GDP as compared to the entire construction sector’s contribution of around 6%, which includes roads, ports, housing, dams and canals etc. The construction industry is the only industry which makes use of all oth er industries; you need ceramics, pipes, steel, cement, glass, tiles, iron, wood, cloth. Start construction and you provide employment for hundreds of labourers, you will use transport for transferring materials, so the transportation industry will get a boost, labourer's income will increase, spending will increase. Over and above, you solve the housing problem. If this is done, the contribution might go up to 10% for the construction sector and around 3-4% for the housing sector. Another way of looking at the huge potential of housing construction sector for the development of economy is through it’s impact on GDP. A 10% increase in final expenditure in the construction sector increases the GDP by 3%. TYPES OF HOME LOANS Home Purchase Loans: This is the basic home loan for the purchase of a new home. Home Construction Loans: This loan is available for the construction of a new home on a said property. The documents that are required in such a case are slightly different from the ones you submit for a normal Housing Loan. If you have purchased this plot within a period of one year before you started construction of your house, most HFCs will include the land cost as a component, to value the total cost of the property. In cases where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in the total cost of property while calculating eligibility. Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased, for external works like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can avail of such a loan facility of a home improvement loan, after obtaining the requisite approvals from the relevant building authority. Home Extension Loans: An extension loan is one which helps you to meet the expenses of any alteration to the existing building like extension/ modification of an existing home; for example addition of an extra room etc. One can avail of such a loan facility of a home extension loan, after obtaining the requisite approvals from the relevant municipal corporation. Home Conversion Loans: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan. Land Purchase Loans: This loan is available for purchase of land for both home construction or investment purposes Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property. Bridge Loans: Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer s found for the old home. Balance-Transfer Loans: Balance Transfer is the transfer of the balance of an existing home loan that you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest. Re-finance Loans: Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates of interest, which is lower. NRI Home Loans: This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India. The HFCs offer attractive housing finance plans for NRI investors with suitable repayment options. HOUSING FINANCE COMPANIES IN INDIA I. BOB HOUSING FINANCE   [pic] BOB Housing Finance Limited was set up in December, 1990 by Bank of Baroda in association with National Housing Bank. The company became a wholly owned subsidiary of Bank of Baroda since March 31, 2006. Purpose For purchase of land /site from Govt. statutory bodies such as housing boards, Development Authorities/CIDCO etc. Amount (Least of the following subjects to minimum of Rs. 50,000/-) 85% of the cost/purchase price of the land. Rs. 100 lacs. 42 months gross salary or 3 1/2 times of average annual income as per income tax returns last 3 years of which ever is less. . Rate of Interest :The current interest rates are as under : |FIXED RATE OPTION | |TENURE |   | | |NEW RATE | 1-5 |   |9. 00% | |6-10 |   |9. 25% | |11-20 |   |9. 75% | |VARIABLE OPTION | |TENURE |   |NEW RATE | |1-20 |   |9. 75% | †¢ Interest will be calculated on annual rest basis. †¢ Installment to commence from the next month, from the month in which loan is fully disbursed or expiry of 1 1/2 year from the date of first disbursals whichever is earlier. Pending EMI, Pre-EMI interest is to be paid on monthly basis on loan disbursed. Security †¢ Equitable mortgage of the plot of land to be purchased. †¢ Personal guarantee of one individual. II. CAN FIN HOMES [pic] Can Fin Homes Limited was set up in 1987, the â€Å"International Year for Shelter for the Homeless,† by Canara Bank in association with reputed financial institutions including HDFC and UTI. The first bank sponsored Housing Finance Company in India; Can Fin Homes has emerged as one of the leading players in the country's home loan segment. Canara Bank offers home loans for construction/purchase of house/flat and also for renovation of existing flat/house. The bank offers a maximum loan of Rs. 1,00,00,000/- depending on the borrower's repayment capacity. The loan repayment period is 5 – 10 years for site loans and 5 – 20 years for other loans. Canara Bank home loans are offered for purchase or construction of any residential house or flat. The bank also provides finance for companies or corporations or Societies for purposes of construction or purchase of residential houses or flats. Canara Bank provides loans to individuals for site purchase where the allotment of site shall be for the residential purpose by State Development Agencies, Municipal Bodies, and Associations. How much amount you get a loan Upto Rs. 1,00,00,000/- depending on your repayment capacity. Repayment capacity will be considered after assessing your income, age, qualifications, work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc. You can apply for a loan upto 80% in the case of site loan and 85% of otal project cost for the remaining section depending on your repayment capacity. Your loan repayment will be †¢ 5 – 10 years for site loans, 5 – 20 years for other loans. †¢ They are payable in easy, Equated Monthly Installments III. LIC HOUSING FINANCE   [pic] LIC Housing Finance Limited is one of the leading players in the home loan segment. Incorporated on June, 19, 1989 and promoted by the Life Insurance Corporation of India, LIC Housing Finance Limited boasts of an extensive distribution network and a massive brand presence by virtue of being one of the earlier entrants in the market for housing loans. Griha Prakash Loan Amount: †¢ Min. Rs. 25,000 †¢ Max. Rs. 1,00,00,000. Loan to Property Cost : 85% of total Cost of the property including Stamp Duty and Registration Charges. Loan Term : Upto 20 Years or Retirement Age or 70 years of Age, whichever is earliest. Repayment Mode : Equated Monthly Installments(EMI) – Monthly Rest Basis Security : 1. Equitable Mortgage of House/Flat 2. One Guarantor. Risk Cover: Any existing or new policy under any acceptable plan of insurance (issued by LIC of India) on the lives of the applicants, having risk cover to the extent of loan amount. Front End Charges: 1. 00% of Loan Sanctioned. Loan for Purchase of Vacant Plots/Sites Loan Amount: Min Rs. 50,000 Max Rs. 20,00,000. Loan to Property Cost: 85% of the Cost of Plot/Site. Loan Term: Upto 15 Years or Retirement Age, or 70 years of Age, whichever is earliest. Repayment Mode: By Equated Monthly Installments (EMI) – Monthly Rest Basis. Security: 1. Equitable Mortgage of Plot/Site 2. One Guarantor. Risk Cover: Life Insurance Cover is not required but advisable in the interest of the applicants. Front End Charges: 1. 0% of Loan Sanctioned. V. SBI HOME FINANCE [pic] State Bank of India (SBI), the largest bank in India, is one of the market leaders in the home loan segment. But SBI's reputation has surely taken a hit following the collapse of the erstwhile SBI Home Finance Limited in which SBI was the largest shareholder along with other institutional promoters like HDFC and LIC. Due to continued losses and complete erosion of its net worth, the company's certificate of registration had been cancelled by the National Housing Bank. SBI offers home loans for a variety of purposes: purchase/ construction of new House/ Flat, purchase of an existing House/ Flat, purchase of a plot of land for construction of House and extension/ repair/ renovation/ alteration of an existing House/ Flat. SBI home loans come with some unique features that make them stand out in the competition: no cap on maximum loan amount for purchase/ construction of house/ flat, option to club income of one's spouse and children to compute eligible loan amount, free personal accident insurance cover and complimentary international ATM-Debit card. Besides the standard package of home loans, SBI has some customized home loan products in its kitty that address the needs of niche customer segments. ‘SBI-Flexi' Home Loans are designed to enable borrowers to hedge their Home Loan against unfavorable movement in interest rates and gives the customers a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates. ‘SBI-Freedom' Home Loans are customized for high net worth individuals and offer benefits such as 100 per cent finance of the project and no mortgage f the property, provided the individual could show liquid securities such as LIC policies or NSCs. SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! ‘SBI-Home Loans' Loan Amount  Applicant/ any one of the applicants are aged over 21 years and upto 45 years – 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI), subj ect to aggregate repayment obligations not exceeding 57. 50% of NMI/ NAI   Applicant(s) aged over 45 years of age- 48 times NMI or 4 times NAI, subject to aggregate repayment obligations not exceeding 50%of NMI/ NAI   VII. HDFC   [pic] Both in terms of business volume and market standing, HDFC stands head and shoulder above the competition in the home loan segment. With an expertise gathered over 25 years of existence in the business, HDFC has managed to create an impressive loan portfolio that caters to varied housing finance needs. HDFC offers home loans for individuals to purchase (fresh / resale) or construct houses. HDFC finances up to 85% maximum of the cost of the property which is inclusive of agreement value, stamp duty and registration charges. HDFC lends a maximum amount of Rs 1 crore and the maximum period of repayment is 15 years or retirement age, whichever is earlier. HDFC's Home Improvement Loan facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers). HDFC Land Purchase Loan can be used to purchase land. HDFC finances up to 70% of the cost of the land and repayment of the loan can be done over a maximum period of 10 years. Features: Maximum loan  85% of the cost of the property (including the cost of the land) and based on the   repayment capacity of the customer. Maximum Term  20 years subject to your retirement age. Adjustable Rate Home Loan  Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan, and vice versa when the interest rate decreases. Fees  1% of the loan amount applied plus applicable service taxes and cess. No Charges for    Part or Full Prepayment of loan under Adjustable Rate (except in case of prepayment through a refinance from other bank or institutions prepayment charges will be applicable)    Fixed Rate – Part prepayment upto 25% of opening loan outstanding in a financial year    Replacement of cheques Income Tax Certificates Accelerated Repayment Option VIII. ICICI [pic] ICICI Bank offers home loans for purchase or construction of house and the loan amount can be up to 85% of the cost of the property. The loan must terminate before or when the borrower turns 65 years of age or before retirement, whichever is earlier. ICICI home loans come with benefits like easy interest rates, simplified documentation, doorstep service and free personal accident insurance. ICICI MaxMoney Home Loans offer the unique advantage of higher loan eligibility with a lower initial installment. One can get up to 30% higher amount against one's current income and the installment amount gets stepped up over the years. ICICI SmartFix Home Loans combine the safety of fixed rates plus the advantages of floating rates. For the first 3 years the borrower gets a fixed interest rate and the fourth year onwards, the loan gets switched to the prevailing floating interest rate. Home Improvement Loans †¢ You can get a loan for renovation /refurbishment of your home. †¢ Get the same interest rate as applicable on Home Loans †¢ Avail of loan upto Rs. 50 Lakhs Avail of loan upto 70% of cost of improvement †¢ Enjoy repayment period of upto 15 years. IX. SUNDARAM FINANCE GROUP   [pic] The south-based Sundaram Home Finance Limited was launched on July 2, 1999, by Sundaram Finance Limited with equity participation from International Finance Corporation (IFC), Washington and FMO, Netherlands. After consolidating its business in the south, Sundaram Home Finance has made for ays in the Northern states as well. Sundaram home loans are offered for purchase or construction of any residential house or flat. The house/flat can be purchased from a builder or from a Statutory Authority. The maximum loan amount can be Rs. 1 crore or 85% of the agreement value, whichever is less. The tenure of the home loan can be 20 years or retirement age, whichever is earlier. Sundaram provides Home Improvement Loans to individuals for carrying out internal and external repairs to an existing home. The maximum loan amount can be Rs. 1 crore or 70% of the agreement value, whichever is less. The term of the home loan can be 10 years or retirement age, whichever is earlier. Sundaram Land Loans facilitate purchasing of land for construction of residential units. The maximum loan amount can be Rs. 1 crore or 50% of the agreement value, whichever is less. The tenure of the land loan can be 15 years or retirement age, whichever is earlier. Sundaram also provides loans against existing residential properties. The maximum loan amount can be Rs. 25 lakhs or 50% of the value whichever is less. The maximum term of repayment for salaried professionals is 10 years or retirement age whichever is earlier. Maximum loan:  Rs. 1 crore or 85% of the agreement value, whichever is less, subject to repayment capacity as assessed by SHFL. Maximum term of loan: Salaried Category:  20 years or retirement age, whichever is earlier for all salaried categories of customers. For Self-employed:  15 years or 65 years, whichever is earlier. X. Housing and Urban Development Corporation Ltd. (HUDCO)   [pic] Established on April 25, 1970, the Housing and Urban Development Corporation Ltd. (HUDCO) is a fully owned organization of the Government of India. HUDCO was instituted with the objective of providing long-term finance for construction of houses, undertaking urban development programmes and infrastructure facilities. HUDCO stands out in the burgeoning housing finance industry for its focus on the social aspect of housing and utility infrastructure provision. In spite of its commercial orientation, HUDCO has adopted a policy of preferential allocation of resources to the socially disadvantaged. It continues to emphasize on sectors which are more socially relevant rather than only on commercially viable and profitable sectors. HUDCO has played a stellar role in the implementation of National Housing Policy. It has been entrusted with the implementation of the priority programmes of the Ministry like Low Cost Sanitation, Night Shelter for Footpath Dwellers, Shelter Upgradation under Nehru Rozgar Yojana, Rural housing under Minimum Needs Programme. Although commercial banks and housing finance companies are doing brisk business in the swelling housing finance sector, the housing needs of the poor and low income groups have remained unaddressed. In such a scenario, HUDCO's role has become even more significant. HUDCO's social orientation of is evident from the fact that about 92 percent of the 150. 93 lakh houses financed by HUDCO are for the benefit of Economically Weaker sections and Low Income categories. In the face of growing competition, HUDCO has adopted innovation in its lending operations. HUDCO Niwas, which was launched in 1999, is an extremely popular housing loan scheme. Under HUDCO Niwas, individual housing loans are given directly to the borrowers instead of the established practice of disbursing loans through the state governments and their housing agencies. Moreover, HUDCO has moved the government seeking permission to enter the banking and insurance sectors. Property:  Housing Urban Development Corporation (HUDCO) offers Niwas scheme. The scheme is a housing finance instrument for individual families which offers loan assistance to individuals constructing or buying a house or a flat. Similar loan assistance is also extended to extend or improve an existing house or flat. Amount:   The maximum loan amount will not exceed 85 per cent of the total cost of the housing unit, including incidental costs like stamp duty and registration. The maximum loan amount granted by HUDCO is Rs 15 lakh. Payment Term:   It is normally up to 15 years, but the period will not extend beyond the age of 65 years of applicant. However, HUDCO Niwas will endeavor to determine the repayment period to suit the convenience of the applicant. In case the applicant wishes to extend the period of repayment beyond 15 years, it can be extended up to 20 years. Howev er, in such cases, additional interest of 1 per cent per annum will be charged over and above the regular rates. Summary of Financials of Select Housing Finance Companies in 2005 |PARTICULARS |LIC Housing Finance Ltd. |Can Fin Homes Ltd. Sundaram Housing Finance Ltd |HDFC Ltd. | |Summarised Balance Sheet | |Assets | |Loans |360,115. 00 |15,292. 70 |13,105. 00 |8,165. 27 | |Investments |31,300. 40 |1,201. 80 |333. 10 |218. 03 | |Fixed Assets (Net Block) |2,948. 0 |301. 00 |35. 80 |82. 77 | |Net Current Assets/Others |10,941. 10 |766. 10 |188. 60 |341. 31 | |Total Assets |405,305. 00 |17,561. 60 |13,662. 50 |8,807. 38 | |Liabilities | |Share Capital |2,491. 0 |501. 20 |204. 90 |265. 00 | |Reserves |36,339. 80 |1,394. 70 |1,320. 70 |469. 54 | |Total Shareholders funds |38,831. 00 |1,895. 90 |1,525. 60 |734. 54 | |Loan funds |366,474. 00 |15,665. 70 |12,136. 90 |8,072. 4 | |Total Liabilities |405,305. 00 |17,561. 60 |13,662. 50 |8,807. 38 | |Summarised Profit and Loss Statement | |Tot al Income |34,100. 80 |10,687. 20 |1,273. 30 |855. 43 | |Total Expenditure |21,532. 95 |8,611. 10 |991. 20 |648. 0 | |Gross Profit |12,567. 85 |2,076. 10 |282. 10 |206. 73 | |Profit After Tax |10,365. 53 |1,437. 20 |211. 20 |167. 08 | |Other Financials | |Dividend (%) |170 |50 |20 |21 | |EPS (Rs. |41. 74 |16. 21 |5. 06 |6. 31 | |Book Value Per Share (Rs. ) |179. 00 |140. 59 |37. 83 |27. 72 | |Capital Adequacy Ratio (%) |13. 40 |15. 00 |16. 46 |15. 71 | |Debt Equity Ratio |9. 44 |8. 26 |7. 6 |10. 98 | | CALCULATION OF LOAN On receiving a loan application, financial institutions carry out the credit appraisal of the applicant/s. Credit appraisal is the step that decides the loan amount an applicant is eligible for. The objective of credit appraisal is to determine the ability and willingness of an applicant/s to repay a loan. A set of financial and non-financial techniques is used to meet this objective. Different financial institutions have different methods and norms of credit appr aisal and for calculating the loan eligibility. Usually the ability to repay is determined by analyzing information like present income, consistency of income, experience, profession, additional sources of income, assets, liabilities, amount of installments of other loans (if any), past loan repayment history, investments, educational qualification, age, number of dependents etc. The financial ratios considered during the process of credit appraisal to determine the amount of loan an applicant is eligible for include; A. Installment to Income Ratio (IIR) Expressed as percentage, this ratio is calculated as IIR = (Home loan installment amount / Monthly income) * 100 Installment to Income ratio (IIR) denotes the portion of monthly income that can be spent towards home loan repayment. It is believed that about 35% to 40% of monthly income can be comfortably allocated towards home loan repayment. Based on this broad assumption, an IIR of 35% to 40% is considered to arrive at eligible loan amount. For example, at 40% IIR, an applicant having monthly income of Rs. 40,000 can repay Rs. 16,000 as home loan installment. As mentioned, an IIR of 40% is a broad assumption and can be higher or lower based on other parameters like consistency of income, experience, profession, additional sources of income, assets, liabilities, past loan repayment history, investments, educational qualification, age, number of dependents, age of dependents etc. In case of an earning co-applicant, co-applicant's monthly income can be clubbed with applicant's monthly income to increase the loan eligibility. With your monthly income known, you can calculate your approximate home loan eligibility as explained in the example below; Monthly income:Rs40000 IRR:40% Desired Loan Tenure :20 Interest Rate :10% STEP1: AFFORDABLE LOAN INSTALLMENT=(40000*40%) = Rs. 16,000 STEP2: Determine installment amount per lack of loan for desired loan tenure. In this example, installment for a loan of Rs. 1,00,000 for 20 years at an interest rate of 10% is Rs. 965 STEP3: Eligible Loan Amount = (Affordable loan installment / installment per lack) * 1,00,000 In this example Eligible loan amount=(Rs 16000/Rs. 965)*100000=Rs. 16,58,030 B. Fixed Obligation to Income Ratio (FOIR) Expressed as percentage, this ratio is calculated as FOIR = (Home loan installment amount + other loans installments) / Monthly income)} * 100 Fixed Obligation to Income Ratio (FOIR) is calculated to determine the portion of monthly income that can be spent towards home loan installment after considering other fixed obligations like car loan, consumer durable loan, deduction towards salary advance recovery etc. Statutory deductions such as provident fund, professional tax, investment s, insurance premium are excluded from the fixed obligation component. For example, for an applicant having a monthly income of Rs. 40,000 and a car loan installment of Rs. 4,000, at 40% FOIR, can repay Rs. 2,000 towards home loan installment {(Rs. 40,000*40%) – Rs. 4,000 }. Some of the financial institutions do not consider loans outstanding with maturity less than one year as fixed obligation and installment paid towards these short terms loans is excluded from the FOIR calculation. This means, your loan eligibility can be higher despite of short term fixed obligations. It is worth checking the institution's policy on fixed obligations before finalizing the lender. With your monthly income and other fixed obligations known, you can calculate your approximate home loan eligibility as explained in the example below; Monthly Income :Rs 40000 Car Loan Installment :Rs 4000 FOIR% :40% Desired Loan Tenure :20 years Interest Rate :10% STEP 1: Affordable Loan Installments = (Rs. 40,000 * 40%) – Rs. 4,000 (OF ALL OUTSTANDING LOANS)=12000 STEP2: Determine installment amount per lack of loan for desired loan tenure. In this example, installment for a loan of Rs. 1,00,000 for 20 years at an interest rate of 10% is Rs. 965 STEP3: Eligible Loan Amount = (Affordable loan installment / installment per lack) * 1,00,000 In this example Eligible loan amount=(Rs 12000/Rs 965)* Rs 100,000 = Rs12,43,000 C. Loan to value ratio (LTV) Expressed as percentage, this ration is calculated as LTV = (loan amount / property value) * 100 Loan to value (LTV) denotes the portion of value of the property that is financed by a financial institution. Each financial institution has a cap on maximum loan amount that can be extended towards financing a property. Most of the financial institutions offer loan upto 85% of the property value. The LTV offered by a financial institution may differ in certain cases. For example, LTV may be different for an approved project from an unapproved project. Instances where loan amount computed based on income (IIR/FOIR) is different from the loan amount computed based on property value (LTV), the lower of the two is considered as the eligible loan amount. SOME IMPORTANT POINTS TO BE MENTIONED: 1. Income of salaried class people includes :income of the applicant +income of the co-aplplicants(max2)+rental income(generally 50%) 2. Income of a self employed: It is determined by the INCOME TAX RETURN of the applicant +depreciation(generally100%) 3. The IRR and FOIR can be 100% only in certain exceptional cases. 4. Another important point to note is that as the tenure of the loan decreases the loan he loan he is eligible for also decreases. Will the Installment to Income Ratio (IIR) AND Fixed Obligation to Income Ratio (FOIR) always remain the same? No, it will not always remain the same. As the income increases both IRR and FOIR also increases but it generally remains in the limits of 40% to 70%. Reverse Mortgage Loan Many senior citizens, retired from work worry about the dwindling amount in their bank accounts? Wondering how to maintain a steady cash flow to meet their daily needs? An option often thought of to deal with this problem, is to rent the existing house which seems a liability and move to a smaller house or to sell the house altogether and invest the proceeds to earn a higher monthly income. Why not turn that liability into an asset? The answer – Reverse Mortgage. Reverse mortgage is a financial product that enables senior citizens (60 +) who own a house to mortgage their property with a lender and convert part of the home equity into tax-free income without having to sell the house. Instead of you making monthly payments to a lender, as with a regular loan, the lender makes payments to you. Multiple options are available for repayment of the loan in lumpsum at the end of the loan term. Maximum period of loan is of twenty years. The loan is not required to be serviced as long as the borrower is alive and in occupation of the property. On the borrower’s death, the loan is repaid through sale of property. About 350 crore worth of Reverse Mortgage has been sanctioned. The National Housing Bank has received innumerable calls of inquiry from senior citizens wanting to know more. It is to tackle this influx of calls and give each senior citizen attention as per his/her needs, that information and counseling centres will be functional throughout the nation, at various HelpAge offices in 10 cities of India: Delhi, Chandigarh, Lucknow, Hyderabad, Chennai, Jaipur, Bangalore, Kolkata, Ahmedabad, and Bhopal with especially trained staff. Qualifications for reverse mortgage eligibility ? Should be a Senior Citizen of India above 60 Years of age. ? Married Couples will be eligible as joint borrowers provided one of them being above 60 years of age and other not below 55 years of age. Benefits of a reverse mortgage: ? It aims at partially meeting the financial needs of senior citizens without selling the property and enables recurring funds inflows to the senior citizens during their life time. ? After the death of the senior citizen, the surviving spouse can continue to occupy the property till his/her demise ? It can also be an investment tool for youngsters who plan for a retirement solution. They can start investing in a housing property and take benefit of the same during their retirement life. They have a secured investment which has benefit of capital appreciation. In India, the Reverse Mortgage concept faces a few challenges: ? Indian culture dictates that property is bequeathed to heirs and housing property is a sign of social legacy. Indians have to work out of this mindset to adopt this novel concept. ? Also, on the legal front, handling the title transfer, possession of house, other regulation etc can be tricky. ? Last but not the least income tax treatment for money received from the HFC is also an open issue, since the loan disbursements cannot be considered as the income for senior citizens. Reportedly National Housing Board is working on the resolution of these issues and Reverse Mortgage will be introduced in a full fledged manner in India very soon. . HOUSING FINANCE-SCOPE IN INDIA [pic] Macroeconomic Background On the back of economic reforms undertaken in 1991, India has grown at an average rate of over 5% through the nineties peaking at about 8% in FY04. It is currently the fourth largest (in PPP terms) economy in the world with GDP output at USD 554 billion. India’s services led-growth strategy is well documented and is a departure from the rest of Asia’s manufacturing-led model for growth. Both domestic and global demand for India’s services remains robust with globally competitive firms emerging from the country’s historically protected private sector. With still much scope for reform, India’s healthy progress in liberalization, private sector-led development, and newly established political support (irrespective of the ruling party) for economic and structural reforms suggest that India could well be setting up the necessary conditions to support the type of long-term growth path over the next 2-3 decades. Inflation through the nineties has hovered between 7% and 13%. Demographics The population of India is over 1 billion and accounts for one sixth of the entire world’s population. The population is second only to China with one quarter of the world’s youth living in India. 54% of the Indian population is below the age of 25. In 2001 the productive population (age 25-44) was 278 million which, by 2013, will grow to 369 million; a growth of 33%. This explosive growth will result in higher demand for housing loans in the foreseeable future. According to the 2001 Census of India the total number of households in India is 191 million, up from 147 million in 1991. Much in line with world trends of falling household size, in India, the average household size has fallen from 5. 71 in 1991 to 5. 34 in 2001. This trend is expected to continue as individuals migrate to urban centres in search of work, coupled with movement away from the joint family system to single family households that is further accelerating lower household sizes. The following graphs interpret the emergence and bubble of housing finance in the country. [pic][pic] series1=housing finance series2=consumer durables series3=credit cards eries4=other personal loans Housing Finance The value of total residential mortgage debt moved up from USD 1. 84 billion in 1994 to USD 12. 26 billion in 2004; a CAGR of 21%. The housing finance market has recorded robust growth in the last 5 years, clocking an annual growth rate of about 40% between FY99 and FY04. Residential mortgage debt as a percentage of GDP was a mere 0. 58% in 1994 which has moved up to 2. 21% in FY04, still miniscule when c ompared to about 45% in the EU, 70% in the US and upwards of 30% in East Asian economies. Interest rates on housing loans have fallen from a peak of 17% in 1996 to 7. 5% last fiscal making owning a home more affordable. This combined with increasing loan tenures, increasing loan-to-value ratio and a rise in the installment-to-income ratio are precipitating high growth rates in the housing finance market. The organized lenders in the housing finance industry, comprising 30% of housing units constructed, are currently concentrated in the urban markets, with a greater presence in the major metros and Tier 1 cities. They are however, moving to the Tier 2 cities and smaller towns but are yet to venture into the rural markets. Also, salaried borrowers constitute the bulk of the clientele for the financier in comparison to the self-employed borrowers, who constitute a miniscule proportion. As a segment, the self-employed category is much bigger than the salaried segment, but the organized lenders have, historically, been concentrating on the salaried borrowers due to the lower risks associated with them. Traditionally housing finance was dominated by a handful of private sector institutions. These Housing Finance Companies (HFCs) commanded 70% market share in FY99, which has subsequently fallen to 50% In FY04 as a direct result of policy changes that permitted the entry of banks into this industry. Banks now control 40% of this market and continue to show explosive growth on account of government policy that categorizes this lending under priority sector lending and the low NPA levels experienced in this industry Shortage of Housing Official and updated statistics on the shortage of housing units in the entire country is not readily available. According to the National Buildings Organisation (NBO), the components of housing shortage include (a) the excess of households over houses, including homeless households, (b) congestion i. e. the number of married couples requiring a separate room, (c) replacement or upgradation of unserviceable houses and (d) obsolescence/replacement of old houses. The last official estimate on the shortage of housing units was from the NBO which estimated a total shortfall of 19. 4 million units comprising 6. 6 million units in urban areas and 12. 8 million units in rural areas. Further, over 90 percent of this shortage is for the poor and low-income category (Ministry of Urban Affairs, 1998). This, shortage however, is based on the 1991 Census figures and thus is outdated. The unofficial estimate of the housing shortage is currently pegged at over 40 million dwelling units. Despite the absence of reliable statistical information, the growing population and increasing urbanisation has resulted in rising pressure on the available housing stock. As per the Planning Commission estimates, the total requirement of urban housing during the tenth five year plan, covering the period 2002-2007, is 22. 4 million dwelling units in urban areas. This comprises two components – an urban housing backlog of 8. 89 million dwelling units estimated at the beginning of 2002 and an addition of 13. 55 million new dwelling units. As per the Census 2001, housing completions (defined as the absolute increase in housing stock during a particular period) is around 5 houses unit s per 1,000 population per annum in India. The average annual housing completion in urban areas per 1,000 population was steady at around 7 housing units during the past three decades. This however, is lower than the minimum threshold as recommended by the United Nations of 8 to 10 housing units per 1000 population for developing countries (NHB Trend and Progress Report, 2004). Table 1. 2: Addition of Census Houses per 1,000 Population |1971-81 |1981-91 |1991-01 | |Urban | |Added Census Houses (million) |11. 55 |16. 55 |19. 3 | |Added Households (million) |10. 00 |11. 64 |12. 95 | |Annual Housing Completions/1,000 population |7. 23 |7. 61 |6. 83 | |Rural | |Added Census Houses (million) |19. 25 |29. 02 |34. 56 | |Added Households (million) |15. 0 |19. 16 |25. 61 | |Annual Housing Completions/1,000 population |3. 66 |4. 62 |4. 65 | |Total | |Added Census Houses (million) |26. 53 |45. 58 |54. 08 | |Added Households (million) |25. 50 |30. 80 |38. 6 | |Annual Housing Completions/1,000 population |3. 87 |5. 39 |5. 26 | Source: Census 2001, NHB Trend and Progress Report, 2004 Rapid Urbanisation Housing needs are strongly influenced by growth in population and demogra phic changes. While in the recent period the total population growth has been slowing down, the urban population continues to grow rapidly. The urban population has increased from 20 percent in 1971 to almost to 34 percent currently (SSKI, 2006). Urbanisation is particularly concentrated in urban agglomerations or mega cities, defined as cities having a population in excess of one million people. These mega cities account for almost 40 percent of the total urban population. As per the 2001 Census, there were 35 mega cities and the polarisation of growth towards them poses a greater challenge in providing housing in these areas as the housing stock is unable to keep pace with demand (Nallathiga, 2005). This is exacerbated by the continuing trend of in-migration to urban areas. As a result, there has been a disproportionate rise of slums. For instance in Mumbai, almost 60 percent of the total population live in slums. Restrictive Laws One of the major issues constricting the addition of homes is the series of archaic laws governing the Indian housing and real estate sector. Of the over 100 laws governing various aspects of real estate, many date back to the 19th century. Significant ones are the Indian Contracts Act, 1872, the Transfer of Property Act, 1882 and the Registration Act, 1908. Despite the plethora of laws, the legal framework requires a complete overhaul to make it more relevant to today’s requirements. These laws often lead to prolonged litigation and create artificial scarcity of land, thereby raising prices. In India, land is a state subject1. Thus, while the centre may make amendments and issue guidelines, the responsibility for implementing it remains optional for a state government. With 28 states and 7 union territories (areas directly managed by the central government), support for reforms has varied considerably from state to state. ANALYSIS Despite the problems alluded above much development has been made by the country in the field to promote housing finance during the past few decades. With the entrenchment of HDFC in1977, a system of specialized housing finance companies(hfc’s) discussed above, now in hundreds was bought into being. This include 25 large and stable organizations which have been approved as eligible for refinancing from NHB which was formed in 1989. The institution as mentioned earlier is the watchdog for housing finance. It egulates all the HFC’S dealing in housing finance and then sets its rules, regulations and policies binding the same. The recent developments in the field mark the effort made. The recent cut in interest rates for housing finace below 20lac clearly bring up the role played by the agencies today in countering the problem of availability of housing finance. These coups will not only help consumers (middle and lower middle class) find a shelter for themselves b ut it will also motivate infrastructure companies to invest in building low cost homes for the desired category. This in turn will lead to increase in the the capital goods, development of infrastructure therefore overall development of society, increase in job opportunities for the labour class (which will earn more=spend more savings = continuous earning and spending=increase in gdp =increase in living standard). ASSESSMENTS AND PROSPECTS The housing finance market in India has undergone unprecedented change in recent times. This evolution has been interesting, especially for developing countries looking to establish or strengthen their primary housing finance markets. From a time where HDFC established itself as the first retail housing finance company, to the next level where HDFC helped broad-base and develop the market by co-promoting three housing finance companies, GRUH Finance, Can Fin Homes and SBI Home Finance. In effect, HDFC co-promoted its own competition. The third level saw existing players having to actually re-assess the way they did business as the tide of competition rose to an almost unsustainable level with the aggressive entry of banks into the housing finance market. And finally, the present stage where there are a few dominant players with large scale operations. India today is a good example for developing countries wanting to kick off their primary housing market. The advantage of using the Indian housing finance experience is that housing finance players have been successful despite unfavourable conditions such as not having foreclosure norms for several years, difficulty in accessing long-term funding sources, lack of clear titles, no reliable statistics on housing or consumer data and an acute shortage of housing units. Rather than waiting for the government and regulators to create a favourable environment to foster a housing finance system, the market developed despite these constraints. Pre-requisites for Well Functioning Housing Finance Systems Listed below are prerequisites for a well functioning housing finance system which are universal requirements for any country: ? Sound macro-economic policies: Low mortgage interest rates triggered by sound macro economic policies are more important in developing mortgage markets than tax incentives and subsidies. ? Keep transaction costs low and mortgage registration systems efficient. Concentrate on getting the â€Å"primary market† right, e. g. transparent property rights, mortgage and credit registration, efficient mortgage collateral and repossession procedures, before creating a â€Å"secondary market† to finance those loans. ? Create transparent markets for lenders through approved valuation methods, house price indices and data on mo rtgage industry. ? Protect and inform the borrowers, for instance, by helping them compare mortgages products. ? Access to long-term funding sources and other instruments such as covered bonds, mortgage backed securities. Broad Basing the Market Need for an Independent Floating Rate Benchmark There is a need to explore the creation of an independent benchmark for adjustable rate mortgages which can be adopted by all players, thereby leading to more credibility, especially in the case of upward movements in the benchmark. Better Access to Credit History India has no easily shared method of verifying a client’s credit history or loan record. This has resulted in the housing finance industry witnessing a rising number of fraud incidents in the sector. There have been instances of clients taking out multiple mortgages on the same property from different lenders or providing fake documents for the site that do not exist. To enable access to better credit history for customers and preventing malpractices, some important steps have been initiated in the recent period. In 2005, citing increasing cases of fraud in the system, the National Housing Bank has set up a ‘Fraud Management Cell’ to collect information from housing finance companies on frauds committed. The National Housing Bank as collected this data and issued circulars detailing causative factors and suggestive remedial action. . Removal of Conflicts of Interest The National Housing Bank’s role as a promoter should be considered as successfully completed. Serving as both a regulator and equity investor in housing finance companies creates an unnecessary conflict of interest (World Bank, 2004). At the time of inception, the National Housing Bank’s mandate was to promote the housing finance sector. Today this role is not required. Thus, there is no longer any rationale for the National Housing Bank to provide equity investments, thereby creating a conflict of interest as regulator and investor. Besides, in 2005, the National Housing Bank’s investments in housing finance companies was miniscule, accounting for less than one percent of its total assets. FUTURE EXPECTATIONS High interest rates coupled with soaring property prices have only impacted the affordability of buyers, demand, however continues to persist and will become stronger and more intense in near future. Housing Sector in India to Be On a Growth Spree By 2015 Housing demand is poised to see a growth of around 80 Million for the lower-income and the lower-middle income groups. Housing Sector in India is also likely to generate around 4 Million new jobs within a decade with a whooping investment of US$ 670 Billion. It’s also expected that housing and real estate sector will undergo a revolutionary transformation to grow at around 14% annually. Presently, the contribution of Indian Housing to the country’s GDP is modest at less than one percent. In 2010 the demand would further grow to a massive volume of around 400 Million Units. This will necessitate a minimum outlay of US$ 890 Billion. There is a shortage of more than nearly 20 Million housing units in India and this is a positive sign of the untapped opportunities for this sector. LIMITATIONS OF HOUSING FINANCE The housing sector in India for several decades faced a number of set-backs, such as an unorganized market, development disparities, a compartmentalized development approach and a deterrent rent control system. There was not even a concerted attempt to understand the housing problem let alone promote it. Reforms introduced in the sector during the 1990s, however, have overturned the situation to a great extent. The designing of a shelter policy, the organization of the housing finance market, the introduction of fiscal incentives, increased public investment, legal reforms and others initiatives have brought about a number of changes in the housing sector. Interestingly, these changes have been concerned with both reducing the housing shortage and increasing the number of quality housing stock besides increased access to various other housing amenities like safe drinking water, good sanitation and household electricity. In spite of the high growth rates exhibited by the Indian housing finance industry, this sector too has its share of problems. The survey revealed the following growth constraints: 1) Limited exposure of the industry Housing finance assistance of formal institutions has been limited to the middle income and high-income groups. Companies have also not been able to penetrate the rural areas. 2) Absence of proper title deeds High down payment requirement and non-availability of title deeds in the absence of land records are some of the reasons responsible for the inability of the companies in reaching out to the vast population living in the rural areas. 3) No access to long-term funds Non-availability of long-term funds with housing finance companies and banks results in an asset liability mismatch. 4) Lack of foreclosure norms Lack of foreclosure norms for housing finance companies, which, if in place, will encourage HFCs to disburse more loans ) Regional Constraints ? Disparity and high rates of Stamp duty across the country on registration leads to the suppression of the value of property/evasion of registration. ? Imposition of stamp duty on equitable mortgages (i. e. on property used as a collateral for taking a home loan), the rate of which varies across states acts as a deterrent factor in availing ho using finance as the prime security for these loans is equitable mortgage of the property financed. This form of stamp duty is a cost to the customers and should be done away with or reduced to affordable levels. ) Constraints faced by Housing Finance Companies as against banks ? Banks have access to lower cost of funds compared to HFCs because of the following reasons: †¢ Banks have access to low cost retail funds †¢ Minimum capital adequacy ratio for banks is 10% whereas for HFCs it is 12% ? The Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act 2002 is applicable to banks but not to housing finance companies ANNEXURE I 2009 will be the year of affordable housing 29 Dec 2008, 0342 hrs IST, Mayur Shetty, ET Bureau |[pic] | S Sridhar | |NHB chairman & MD | National Housing Bank (NHB) — a subsidiary of the Reserve Bank of India (RBI) — was created two decades ago to regulate and promote housing finance institutions in In dia. Given the current economic environment, home finance has gained centrestage, with housing construction being the largest employment generator with linkages to 250 ancillary industries. As the apex housing finance institution, NHB has taken several initiatives to promote affordable housing. In an interview with Mayur Shetty, NHB chairman and managing director S Sridhar speaks on why he expects 2009 to be the year of affordable housing. House prices have crashed in the West. There is an expectation among buyers that prices will decline in India as well. How do you see the situation? The situation in India is quite different from that of the West. In India, the conduct of the monetary policy and regulation over banks and housing finance companies ensured that the housing bubble did not develop. Further, the actual equity component in housing is much higher than in the West. Thus, housing prices in India have fallen a bit and may fall further, but unlikely to get into a free-fall situation. What needs to be done to reduce housing shortage? I expect 2009 to be the ‘year of affordable houses’, when affordable houses will be available to the middle and lower income groups in sufficient volumes. This will happen mainly through a combination of fall in house prices and reduction in home loan interest rates. The latter has happened. I hope developers reduce prices to stimulate demand and public housing agencies will take up affordable housing in a big scale. Additional hygiene factors are reduction in transaction cost in home purchases through reduction in stamp duty and registration charges and the availability of risk mitigants such as mortgage guarantee, title insurance, credit guarantee for lower income houses. Where do you see interest rates on home loans? Is the NHB refinance rate likely to come down further? Interest rates are headed southward. Public sector banks (PSU banks) have set the pace. Others, including housing finance companies, are following suit. NHB’s refinance rates have also come down to single digit. Refinance for rural housing at concessional rate of 8% per annum for seven years has also been provided. Our PLR has been reduced to 10. 75% per annum. NHB has announced a package for the housing sector. At what interest rate will you lend to HFCs? The refinance facility of Rs 4,000 crore extended by RBI to NHB will be on-lent by NHB to housing finance companies with the following major conditions. It will be available at an interest rate of 8%, and will be available only for loans below Rs 20 lakh. The facility is available up to March 31, 2010. You have launched an index of home prices. How is the index doing? NHB’s RESIDEX, which is India’s first official property index, was launched in July 2007 for five cities — Bengaluru, Bhopal, Delhi, Kolkata and Mumbai — covering the period 2001-2005. It has since been updated to December 2007. The property index has been well received. It is being expanded to cover 15 cities and up to December 2008 wh