Arthur Millers The Crucible Essay - 3348 Words

Arthur Millers The Crucible The Crucible was written in 1952 by the twentieth century American playwright Arthur Miller (1915-.) Miller was born in New York and educated at the University of Michigan where he began to write plays. Most of Millers plays are set in contemporary America and on the whole offer a realistic portrayal of life and society and the theme of self-realization is re-current e.g. John Proctor in The Crucible. The Crucible was the third play Miller wrote. It is a play about the Salem Witchcraft Trials of 1692 in Salem, Massachusetts. It was used as a parable for McCarthyism in America in the 1950s. Millers play The Crucible has recently been made into a hugely successful film that stars†¦show more content†¦The play explores the themes of witchcraft, the struggle between good and evil and a fear of individuality. At the end of Act One Reverend Hale of Beverly, an authorative on witchcraft arrives at Reverend Parriss house. He is trying to awaken Betty from her bed, as she has not woken since Parris caught Betty and some other girls from the wood with Tituba, Parriss Negro slave. The atmosphere is tense due to the fact the scene is taking place in the dark, upstairs room of Bettys bedroom. Its homely state and the close proximity of the characters add suspense and tension. The locals have no explanation for Bettys behaviour other than that she is bewitched. More local disturbances were likely to be blamed on witchcraft, and the hunt for witches began. The community in Salem was all Puritan settlers who had fled from persecution in England and hoped to have found a city of souls. The town was deeply religious as a result of a close relationship between the church and the law, it was, in fact a theocracy. Bettys supposed bewitching would have become very prominent within the village and struck terror into the very core of such a community. Hale begins the scene with suspense. His persona is re-iterated as a brave and fearless man when he alarms the audience with the words, if the Devil is in her you will witness frightful wonders in this room. He scares Mr. Putnam and asks him to stand close in caseShow MoreRelatedArthur Millers The Crucible1002 Words   |  4 Pagesreligious authority; this is now deemed unconstitutional in America. A community run by Puritans, Salem, Massachusetts, became so far corrupted in 1692 that a heinous witch-hunt resulted. In response to these events, Arthur Miller wrote a play called The Crucible. Shaped by Miller’s experience of being tried before the congressional committee during the hunt for communists in the 1950s, his writing directly paralleled Salem’s witch-hunts to the McCarthy hearings. In his play, Abigail Williams wasRead More Arthur Millers The Crucible Essay2614 Words   |  11 PagesArthur Millers The Crucible Arthur Miller demonstrates the familiarities of the life he lived in the 1950s and of everyday life we live in through his plays. He communicates through his work to the way people are in society. The extreme witch hysteria deteriorated the rational and emotional stability of its citizens. This exploited the populations weakest qualities, and insecurities. The obvious breakdown in social order led to the tragedy that saw innocent souls hang on the accusationRead More Arthur Millers The Crucible Essay1231 Words   |  5 PagesArthur Millers The Crucible The Crucible is based on the Salem Witch Trials in 1692. In act 1 the audience find out that John Procter had an affair with Abigail Williams, who was dancing in the woods, and that she still has feelings for him. When John denies their love Abigail starts accusing people of witchcraft. Act 2 is when we meet Elizabeth Procter who gets arrested on suspicion of witchcraft. In act 3 John goes to court trying to free his wife and the others but without much luckRead More Arthur Millers The Crucible Essay947 Words   |  4 PagesArthur Millers The Crucible The Crucible was written by Arthur Miller. Arthur Miller was brought before a committee in 1956 to answer charges of communist sympathy and to name the people he had had meetings with up to twenty years before. Liberal writer, film directors, actors and actresses were all called before the committee. The committee often had lists of names of people who had attended meetings yet they still forced witnesses to recite names, to see if they would comply andRead MoreArthur Millers The Crucible Essay1404 Words   |  6 PagesArthur Millers The Crucible During The Crucible Proctor is easily cast as a villain and other characters clearly see this side of him. This is evident when Abigail shows her attraction for Proctor and her flirtatiousness is obvious to the audience as she talks to Proctor, she moves closer to Proctor and the stage directions suggest that there is a Faint smile Upon Proctors face, this smile widens as Abigail truthfully explains what happened the night beforeRead MoreArthur Millers The Crucible : An Allegory For Mccarthyism750 Words   |  3 Pagesworks and is paid according to their abilities and needs.† Arthur Miller’s â€Å"The Crucible† is an allegory for McCarthyism during the red scare due to the identical proceeds that divulge within not only The Crucible’s plot but also history, such as the accused confessing to a crime they did not commit to save their life, people rising to power by taking advantage of others, and accusations having credibility with no affirmation. â€Å"The Crucible† was published in 1952 just two years after the start of theRead MoreEssay on Language in Arthur Millers The Crucible525 Words   |  3 PagesLanguage in Arthur Millers The Crucible One aspect of The Crucible that is really Important is the way that Arthur Miller writes, and the language that he has used. His style is rather simple, with simple sentence structure on the whole, and quite simple vocabulary, he wanted to keep everything simple in this way in The Crucible, to prevent focus being taken away from the plot and the problems that the characters were facing with each other. So Miller doesRead MorePuritan Intolerance In Arthur Millers The Crucible808 Words   |  4 PagesMcCarthyism is well-known and embraced by Arthur Miller. His 1953 play on the Salem witch trials act as an allegory to Joseph McCarthy’s scandal, comparing them to a â€Å"witch hunt†, thus an allusion to the Salem tragedies. Miller uses his characters in a strict way to develop his allegory of the Puritan intolerance. Strongly implanted by Miller, his theme of intolerance demonstrates what thoughts spring to life and what he is trying to put forth. In Arthur Miller’s The Crucible, Miller uses his characters ofRead MoreAllegory For Mccarthyism In Arthur Millers The Crucible767 Words   |  4 Pagesto no evidence, but people were forced to confess or they would be prosecuted. Arthur Miller’s â€Å"The Crucible† is an allegory for McCarthyism during the red scare due to the near parallel events that confide in the plot and history such the accused confe ssing to a crime they did not commit to save their life, people rising to power by taking advantage of others, anda accusations having merit with no evidence. â€Å"The Crucible† was written in 1952 just two years after the start of the McCarthy era. WithRead MoreCommunism And Communism In Arthur Millers The Crucible711 Words   |  3 PagesSimilar to, in 1953, Arthur Miller an American playwright, scripted the play titled â€Å"The Crucible†. The McCarthy hearings of the 1950s inspired the notable play. Consequently, after the hearing, McCarthyism became a vociferous campaign carried out by Senator Joseph McCarthy, which accused people of communism. To declare, Miller uses an analogy using the events of the Salem Witch Trials of 1693 to expose the ugly truth behind communism and McCarthyism. To begin, the word crucible derived from the

The Spiritual Autobiography By John Knight - 955 Words

In going with the definition of how to construct the spiritual autobiography, I would start with the events, the people and the places that influenced the relationship with God or a higher being. According to Knight, those who were raised in a religious home their journey starts at birth and grows through age. (Knight, 2011) Parents who teach their children about God and who pray with them and worship with them have a close relationship with their God. Knight also states that should you find God later in life you may attribute that to a person or an event in your life. I would encourage someone to write down the people, places and events that influenced their religious journey and how that journey has brought them to the place in their life that they are today. For me personally, God fills my life and has provided me with Christian parents and four brothers and sisters who are also Christians. I would help someone write their autobiography by asking a lot of questions and writing their responses. It would be interesting to find out if, in their family they had the freedom to choose their own beliefs or if they were coerced into being what everyone else is. For instance, if I were interviewing someone from another country, there may be cultural differences in how each family practices their religion and going outside of that may be troublesome. Teachers and pastors as well as family all have a role to play in our lives and our beliefs, so do, the places we go such asShow MoreRelatedAssorted1438 Words   |  6 Pagesclearly amp; directly to symbolic meaning. ( ex: The Pilgrim’s Progress by John Bunyan : Christian’s Journey from the city of destruction to celestian city is an allegory for the spiritual journey from sin to holiness. 2. Anecdote : The brief narration of a single event or incident. 3. Aphorism : A concise expression of insight or wisdom. ( ex.Beyond Good amp; evil by Friedrich Nietzsche) 4. Autobiography : The non-fictional story of a person’s life told by a person. 5. BalladRead MoreBuchi Emecheta and African Traditional Society Essay1918 Words   |  8 Pagesfemale bondage (Frank 749), describing African women in their total submergence and enslavement. On the other, they depict the structures and institutions which empower women and increase their participation in the socio-political, economic and spiritual activities in their community. In these three novels she gives a picture of women in contemporary society as well as those in the past. The realistic picture provided by the writer destroys womens contentment with the present state of affairs whileRead MoreThe Sonnet Form: William Shakespeare6305 Words   |  26 Pagesimportant sonnet sequences of this period.) Sonnets were also written during the height of classical English verse, by Dryden and Pope, among others, and written again during the heyday of English Romanticism, when Wordsworth, Shelley, and particularly John Keats created wonderful sonnets. Today, the sonnet remains the m ost influential and important verse form in the history of English poetry. Two kinds of sonnets have been most common in English poetry, and they take their names from the greatest poetsRead MoreHumanities11870 Words   |  48 Pagesperformance by the artist. After several minutes, the work exploded and caught fire. The idea of generating sound as part of three-dimensional works has been utilized for hundreds of years, traditionally in musical instruments that carry a spiritual reference. Contemporary artists use sound to heighten the effect of sculpture or to direct recorded narratives. The cast bronze fountain by George Tsutakawa (below) uses water flow to produce a soft rushing sound. In this instance the sculpture alsoRead MoreDid Wordsworth or Coleridge Have Greater Influence on Modern Criticism?8605 Words   |  35 Pagesindividual, is matter worth of great art. So the great Jean Jacques Rousseau, although he lived and died in the 18th century, really is one of the great origins of Romanticism. He was one of the first people to dare to write an autobiography. Rousseau is writing an autobiography because he thinks that he  himself is matter worthy of great literature.That is a radically new idea, that you could spend a whole book, writing about yourself. Rousseau actually delight sin his individuality, saying he is uniqueRead MoreNew World Order in Conspiracy Theory13987 Words   |  56 Pagesatheistic  and  bureaucratic collectivist  world government,  demonized  as a Red Menace, therefore became the main focus of  apocalyptic  millenarian  conspiracism.[13] In the 1960s,  right-wing populist  individuals and groups with a  producerist  worldview, such as members of the  John Birch Society, disseminated a great deal of conspiracy theories claiming that the governments of both the United States and the  Soviet Union  were controlled by a  cabal  of  corporate internationalists, greedy bankers and corrupt politicians intent onRead MoreIndian English Novel17483 Words   |  70 Pagesof modern Bengal. From the beginning of the twentieth century Indian literature was increasingly coloured by political aspirations, passionately voiced in the songs and poems of the Tamil poet Bharati and the Bengali poet Kazi Nazrul Islam. The spiritual note of Indian poetry had attained a poignant and rapturous pitch in the medieval Vaishnava outpourings. Tagore’s Gitanjali is the swan song of this great tradition. The devotional content of poetry was henceforth increasingly replaced by the politicalRead Morewisdom,humor and faith19 596 Words   |  79 Pagesstrangely, us, if we look truly enough into our own blinking idiocy.† Nordstrom tells us that â€Å"Shakespeare represents the struggle of human beings to be wise, to transcend their innate and nearly all-consuming proclivity to folly and to attain rare spiritual insight into the principles that make for ultimate human happiness, those principles revealed by our race’s most enlightened luminaries,† and that â€Å"wisdom for Shakespeare has far more to do with the heart than the head,† with â€Å"a true and faithfulRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesLanguage 524 Creating an Ethical Organizational Culture 525 Creating a Positive Organizational Culture 527 Spirituality and Organizational Culture 529 What Is Spirituality? 529 †¢ Why Spirituality Now? 530 †¢ Characteristics of a Spiritual Organization 530 †¢ Achieving a Spiritual Organization 531 †¢ Criticisms of Spirituality 531 Global Implications 532 Su mmary and Implications for Managers 533 S A L Self-Assessment Library What’s the Right Organizational Culture for Me? 512 glOBalization! FaceRead MoreDeveloping Management Skills404131 Words   |  1617 PagesDilemmas 86 SKILL PRACTICE 89 Exercises for Improving Self-Awareness Through Self-Disclosure 89 Through the Looking Glass 89 Diagnosing Managerial Characteristics 90 An Exercise for Identifying Aspects of Personal Culture: A Learning Plan and Autobiography 92 SKILL APPLICATION 95 Activities for Developing Self-Awareness 95 Suggested Assignments 95 Application Plan and Evaluation 95 SCORING KEYS AND COMPARISON DATA 97 Self-Awareness Assessment 97 Scoring Key 97 Comparison Data 97 Emotional Intelligence

Brief Describe the Deepwater Horizon Oil Spill caused by BP Company

Question: Describe the Deepwater Horizon Oil Spill caused by BP Company and how actions were taken against this company by the US Government ? Answer: Abstract This study covers a number of theories that are basically applicable in accounting. Some of the theories discussed include; Positive Political Theory, Public Interest Theory and the Legitimate Theory. These theories are discovered in the context of a case study of BP Company. BP Company is a global Company that falls among the worlds integrated gas and oil companies. A case study is the reputations (financial) of the response of BP to the Deepwater Horizon Oil Spill. Deepwater Horizon Oil Spill is also known as the BP Oil Spill or Gulf of Mexico Oil Spill happens to be the largest marine oil spill in the history of the United States. BP Company happened to be the initiators of a project known as Macondo Prospect oil field, where an oil spill occurred accidentally. Transocean Ltd, contracted BP Company to drill an exploratory well, in the process an explosion causing the oil spill occurred. The US Government tagged BP Company Responsible for the oil spillage. BP accepted the responsibility to ensure cleanup costs while blaming the disaster on Halliburton and Transocean Companies. However, all the charges in relation to the spillage were treated as non-operating items and thus, deduced from BPs taxable Company. This raised a number of issues regarding the p ositive, public and legitimate theories. The study compares the incident and how it was handled to the standards and requirements of the new accounting standards. The study weighs between the negativity and positivity of the action that was taken against this company. A summary is then made on the new accounting standards with a prcised conclusion. Introduction The main focus of the study is the aspect of The theories help in creating a good rapport between the two parties either the government and its citizens or the society and the organizations. Some of these theories are; 1. Positive Political Theory This theory is famously known as the explanatory political theory. This theory entails political study using the formal methods which include; the game theory, statistical analysis, and social choice theory. Positive Political Theory can also be summed up as formal aggregation preference theory for joint choices. It was established by William H. Riker. The social choice theoretic strategies are used for description and analysis of the performance of rules or institutions. The analyzed rules or institutions undergo further analysis under the game theory. Here, the parties involved in an interaction are termed as rational agents who are actually in a game and these parties are guided by self-interest. The outcome can, therefore, be predicted as the equilibrium of the game, easily by basing on the critiques and assumptions. 2. Public Interest Theory The Public Interest Theory is an economic theory that is famously known as the public choice. The Public Interest Theory was established by Arthur Cecil Pigou. This actually, involves using economic tools to handle the previous problems of political science. This theory holds that the regulators will always tend to find markets that are efficient economically. Public Interest Theory holds that regulation is available to respond to the demand for public rectification or imbalanced or inefficient market practices. The body that does this (regulatory body) is concerned to make a fair representation of societys interest. The Public Interest Theory assumes that markets tend to be fragile and it is assumed to operate with less efficiency. The government is assumed to be a neutral party by this theory. 3. Legitimate Theory Legitimacy is a generalized concept that actions of an organization are appropriate within some norms or rules that have been set. Legitimacy theory actually helps in expounding on the behavior of institutions in developing and implementing objectives that enable their survival in their environment (Walker 1993). The society will always tend to view the organization in accordance with what they expect from such organizations. The organizations activities, therefore, should respect the social and moral values of the society. These theories actually help in guiding the existence of businesses and organizations within societies as they give the codes of conduct each party should possess. For instance, in the case study BP Company need to be in good rapport with the society in order to continue offering their services effectively. The Deepwater Horizon Oil Spill It is considered as the largest marine oil spill to happen in the United States. The oil spill occurred in the Gulf of Mexico on April 20, 2010. This led to a lot of debate among different stakeholders. The exact location of the spillage was at Deepwater Horizon that was owned by Transocean and British Petroleum (BP) had been contracted to drill an exploratory well (Liu, MacFadyen Weisberg 2013). At the time of the explosion, the two companies had had agreed to close the well with the intention of carry out productions later, and Halliburton had been contracted to make cemented casings in the well. Based on the public interest theory, the US decided to hold BP responsible for the spillage. Even though BP accepted to take up the responsibilities and had to issue cleanup costs, it recently stated that the other two companies that were involved in the production that is, Transocean and Halliburton were also to be accountable for the oil spill. In this case, BP acted based on the legiti mate theory to protect its reputation. Financial Implications With BP agreeing to take up the responsibility of the oil spill, it had to incur some costs which had a great impact on its finances. Some of the financial implications include; BP had to pay a pre-tax of US$40.9 billion that was related to the Deepwater Horizon oil spill, the pre-tax included the cleanup costs of US$17.7 billion. All the charges were considered as non-operating items and thus were calculated based on the taxable income. BP also agreed to open a US$ escrow account that was to be established in a period of 3.5 years through the sale of assets in the United States. The escrow account was a way of responding to the claims raised by various stakeholders. In addition, BP gave out US$500 to be used to spearhead a 10-year project on the impact of the oil spill. Despite the above financial implications, there were no fines or penalties that imposed on BP. The case study demonstrates the lack of necessary regulations to control the oil and gas activities and as such the politicians failed in regulating the operations of BP hence, failing to protect the interests of the public. The existing Clean Water Act formulated by the politician outlines that in such a case, an organization is supposed to be fined up to US$4,300 per barrel of the oil spilled (Rubin 2012). However, in the quest of protecting its reputation, BP argued that it was difficult to estimate the amount of spillage. Challenge of assessing ecological and socio-economic damages The damages resulting from the Deepwater Horizon oil spill are difficult to quantify in terms of space and time. Additionally, it is difficult for the government to determine in measurable terms the ecological losses that resulted from the oil spill as due to a lot of disagreements from different stakeholders. However, some agencies have resorted tpo using the resource replacement costs approach to estimate the damages. And since, the measurement of ecosystem services is yet to reach maturity, the scale of the penalties that an organization such as BP can receive are determined politically rather than through scientific or technical calculation. And as a result of such a loophole, BP is yet to release the details of the damages caused by the oil spill to the ecosystem. In addition, the methods that were used to calculate the pre-tax of US$40.9 are not disclosed. With BP failing to disclose such vital information, it becomes hard to determine the impact of the oil spill on the ecosyst em. Regulation for Oil and Gas Activities Deepwater Horizon oil spill led to a variety of ecological damages and hence the need to formulate strict regulations that govern the oil and gas activities. The regulations need to focus more specifically on environmental, health and safety protection controls. Additionally, there is the need to emphasize on the environmental accounting and reporting mechanisms so as to regulate the corporate environmental performance. With such strict regulations, the use of disclosure mechanism by BP to protect its reputation after the Deepwater Horizon could not be tolerated instead heavy penalties and fines could have been applied. In general, the arguments raised in the publication concerns the lack of strict regulations that governs oil exploration. Thus, the government should formulate the necessary policies that are aimed at protecting the public. Also, BP took advantage of the institutional loophole to protect its reputation and in so doing it was able to evade penalties involved. Based on these arguments I tend to agree that there is the need for formulation of policies to govern the oil and gas activities so that in the event that incidents such as the Deepwater Horizon oil spill occurring, the organization (s) involved will have to shoulder the total environmental, health, and safety damages caused. Conclusion In conclusion, there are a lot of theories that outlines how various organizations operate in an environment (Walker 1993). An example is a positive theory which describes the outlined policies for testing the institutional performance. Applying this theory to the case study, it is clear that there are loopholes in the Clean Water Act as there are no methods of measuring the damages caused to the ecosystem by the oil spill hence, no fines or penalties applicable. Another theory is the legitimate theory that BP has used to cover its legitimacy with regard to the oil spill. This includes outlining the pre-tax charged from its income tax but has not revealed how it was calculated. Lastly, it is the public interest theory that outlines the importance of the government in protecting the public through the formulation of policies. From the case study, there is a need to formulate strict policies governing oil and gas activities so that the corporate environmental performance is regulated. New Accounting Standards Accounting standards are used to in governing the preparation of financial reports. They can also be referred to as the legal requirement or procedure that sets out the accounting required for a given transaction (Scott 2014). In general, they are referred to as the acceptable principles of accounting (GAAP). The principles provide guidelines on how the various transactions and events should be measured and be presented in a financial statement. Some of these new standards issued in 2016 include; 1. Update 2016-12 This is based on revenue from contracts with customers. It is geared towards narrowing scope improvements the practical expedients. 2. Update 2016-11 This basically includes the following features; revenue recognition, derivatives, and hedging. It provides guidelines on the rescission SEC due to the updates are done on2014-09 and 2014-16 standards. It is pursuant to the announcement of staffs that was done at EITF Meeting on SEC update. 3. Update 2016-09 This mainly focuses on Compensation. In general, the standard emphasizes on stock compensation. It aims at improving the employee share-based payments. 4. Update 2016-08 This update is done on revenue that is obtained from having contracts with customers. It involves the comparison of the principal and agent considerations in making these amendments. Comparison, in this case, is between the gross revenue and the net revenue. 5. Update 2016-07 The topic of this accounting standard is on investment. This standard is based on the equity methods and joint ventures. Generally, it aims at improving and simplifying equity method transition. 6. Update 2016-06 This standard is also based on derivatives and hedging. It describes the various options of the debt instruments. References Liu, Y., MacFadyen, A., Ji, Z.G. and Weisberg, R.H. eds., 2013. Monitoring and Modeling the Deepwater Horizon Oil Spill: A Record Breaking Enterprise (Vol. 195). John Wiley Sons. Rubin, C.B. ed., 2012. Emergency Management: The American Experience 1900-2010. CRC Press. Scott, W.R., 2014. Financial accounting theory. Pearson Education Canada. Walker, R.B., 1993. Inside/outside: international relations as political theory (p. 2). Cambridge: Cambridge University Press. Wenger, E. and Lave, J., 1991. Situated Learning: Legitimate Peripheral Participation (Learning in Doing: Social, Cognitive and Computational Perspectives) by. Cambridge University Press, Cambridge, UK.

Nbfi Essay Example

Nbfi Essay Non Banking Financial Institutions in Bangladesh: Initially, NBFIs were incorporated in Bangladesh under the Companies Act, 1913 and were regulated by the provision relating to Non-Banking Institutions as contained in Chapter V of the Bangladesh Bank Order, 1972. But this regulatory framework was not adequate and NBFIs had the scope of carrying out their business in the line of banking. Later, Bangladesh Bank promulgated an order titled ‘Non Banking Financial Institutions Order, 1989’ to promote better regulation and also to remove the ambiguity relating to the permissible areas of operation of NBFIs. But the order did not cover the whole range of NBFI activities. It also did not mention anything about the statutory liquidity requirement to be maintained with the central bank. To remove the regulatory deficiency and also to define a wide range of activities to be covered by NBFIs, a new act titled ‘Financial Institution Act, 1993’ was enacted in 1993 (Barai et al. 1999). Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29. Of these, one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. 1. 1 Recent Development Activities of NBFIs The major business of most NBFIs in Bangladesh is leasing, though some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing, venture capital financing etc. Lease financing, term lending and housing finance constituted 94 percent of the total financing activities of all NBFIs up to June 2006. We will write a custom essay sample on Nbfi specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Nbfi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Nbfi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer A break-up of their financing activities reveals that the share of leasing and housing finance in the total investment portfolio of NBFIs has gradually decreased from 59 and 15 percent, respectively, in 2002 to 46 and 14 percent in June 2006. The share of term loans, on the other hand, has increased from 20 percent to 34 percent during the same period implying increased focus on the former. The evolvement of NBFI business activity is observed in Figure- 1. 1. It can also be seen from the figure that the portfolio mix of NBFIs has become quite stable from 2004. NBFIs offer services to various sectors such as textile, chemicals, services, pharmaceuticals, transport, food and beverage, leather products, construction and engineering etc. The percentage of the sector wise distribution of NBFIs investment in 2005 is given in Figure- 1. 2. Although an individual NBFI may have a different portfolio as per its business strategy, the aggregated data shows that NBFIs mainly focus on real estate housing (13%), power energy (12%), textile (11%) and transport sector (9%). Service (finance and business) is another area of importance for NBFIs. From the perspective off broad economic sectors, investment in the industrial sector (42%) dominated that in the service sector (33%) in 2005. NBFIs are also exploring other sectors namely ‘pharmaceuticals chemicals’, ‘iron, steel engineering’, ‘garments accessories’, ‘food beverage’ and ‘agro industries equipment’. The weight of these sectors is 23 percent of the total portfolio. Sector wise distribution of outstanding investment of NBFI The contribution of NBFIs’ financing activities (lease, loan, housing, investment etc. to the overall economy persistently increased over the years as can be seen in Figure -1. 3. In 2001, the share of NBFIs’ financing to total GDP had been only 0. 84 percent, which was more than doubled within 5 years and became 1. 83 percent in 2005. The comparative figures for the banking sector were 34. 55 and 41. 32 percent in 2001 and 2005, respectively. The average yearly grow th of NBFIs’ contribution to GDP was about 22 percent during this period as compared to 4. 7 percent of that by the banking sector. Even in the regional context, performance of NBFI sector is quite robust. 2. IPDC at a Glance . 1 – IPDC as an NBFI IPDC, the pioneer of the leasing industry in Bangladesh was first convinced as a result of an IBRD/IFC Industrial sector mission to Bangladesh in 1978. Subsequently a detailed feasibility study and strategic policy dialogue among the Government, IFC and other International in the establishment of IPDC as an alternative development finance institutions in the private sector. The company in 1981 became the first private sector Development Finance Institution (DFI) in Bangladesh. Now it becomes the most relevant and sophisticated Non Banking Financial Institution in the country. . 2. – IPDC at a Glance For the last two and a half decades the name IPDC has been synonymous with excellence, quality, integrity, innovation and pioneering spirit. There are the traits that IPDC continuously aspire to live up. As a company that has inherited a rich legacy of technical know how, engineering expertise, managerial and financial acumen, and, a bove al, the goodwill and loyalty of employees, shareholders, business associates and hundreds of customers. IPDC is continuing to build business on the ethics and values in IPDC. Milestones: Incorporation of the Company |: 1981 | |Sponsoring the establishment of the first leasing company of Bangladesh (IDLC) |: 1984 | |First institutional funding to private sector education (Scholastica School) |: 1998 | |Financing the first private sector cellular telecom company in Bangladesh (Citycell) |: 1998 | |Issuance of Cumulative Redeemable Preference Share pioneer among the Financial Institutions |: 2001 | |Issuance of Zero Coupon Bond through Asset Backed Securitization |: 2004 | |Public Issuance of Shares |: 2006 | |Trading of shares on DSE and CSE |: 2006 | 2. 3 Capital and Shareholding Structure of IPDC: At beginning IPDC was first established by I distinguished multilateral team of shareholders. The founder shareholders of IPDC are: The Government of Peoples’ Republic of Bangladesh (GOB) – 30. 0% Commonwealth Development Corporation (CDC), of the UK – 17. 5% German In vestment Development Company (DEG), of Germany – 17. 5% International Finance Corporation (IFC), an affiliated of the World Bank – 17. 5% The Aga Khan Foundation for Economic Development (AKFED) – 17. 5% Presently AKFED is the majority shareholder with 66% ownership of IPDC and Government of Bangladesh holds 28%. The present share holding structure (an on 31 December, 2007) of IPDC represents the following scenario: |Shareholder |No. of Shares |Paid Up Capital |Percentage | |Government of the Peoples Republic of Bangladesh (GOB) |1,350,000 |135,000,000 |22% | |Aga khan Foundation of Economic Development (AKFED) |3,149,992 |314,999,200 |51% | |Summit Industrial Mercantile Corp. (Pvt. Limited |140,070 |14,007,000 |2% | |Alliance Holdings Limited |140,070 |14,007,000 |2% | |General Public |1,390,000 |139,000,000 |23% | |Others |8 |800 |0% | |Total |6,170,140 |617,014,000 |100% | Table 2. 1 – Shareholding structure of IPDC 2. 4 Present and Future Outlook of IPDC: IPDC has very well defined and elaborate statements crystallizing the management’s view about the organization’s current and long term path. 2. 4. 1 Vision: To be the most respected and innovative financial institution of the country 2. 4. 2 Mission: To be the brand of quality and integrity for delivering innovative and tailored financial solutions to a diverse client base Figure- 2. 1 – Shareholding structure of IPDC 2. 4. 3 Objectives: To ensure maximum returns on investment Profitability is key to achieving superior returns, building our capital and motivating and retaining our best people. ( To ensure steady sustainable growth in business Our increasing corporate profits since inspection have been manifestations of our steady growth. Amidst a competitive environment, our goal is now to take the organization forward with excellence in all our operations. We shall harness and use our distinctive competencies to ensure a long term competitive advantage. ( To improve the quality of service Our strength is not in the volume but in the quality of service that we provide. Our clients’ interests always come first. We relentlessly strive to anticipate the needs of changing needs of our clients and to develop better solution to those needs. Our experience tells that if we serve our clients to the best of our ability, our own success follows. ( To crate innovative product and services Creativeness and imagination is encouraged in everything we undertake. We pride ourselves in having pioneered many products and services that have become standard in the industry ( To maintain highest level of ethical standard We are dedicated to comply fully with the spirit of laws, rules and ethical principles that govern us. Our continued success depends upon unwavering adherence to these standards. Core Values: ( We address clients’ need promptly, impartially and with utmost importance. We take great pride in our dedicated teams of staffs members and will continue to develop potentials and skills at all levels within our organization by rewarding outstanding performance and promoting from within to develo p a climate of high expectation and achievements. ( We remain quality-minded and devoted to uphold our corporate culture. ( We will retain our position of leadership in this field through our commitment to quality, compliances, services and values. ( We will continue personal and corporate involvement in activities benefiting the society and nation. ( We uphold the values of the communities we are privileged to serve by honoring their traditions and preserving the environment. We pledge to remain alert to economic changes which affect our businesses and to respond to ever-changing market demand. ( We will continue to confront all challenges through planning, balanced, diversification and orderly growth. 3. Organizational Structure of IPDC The organizational structure of IPDC is well structured and well defined. A saturated hierarchical work flow is developed for maintaining the chain of command properly. IPDC have six core departments in where every head of each department is liable for the activities of that department and responsible for reporting to the Managing Detector CEO. Exception is existed in the case of company secretary and internal audit department. Head of internal audit and company secretary is responsible for their reporting directly to the Board of Directors. On the following pages the detail organogram of IPDC is presented. The roles and activities of these departments are very fragmented and well established. Moreover every department enjoys the rights to reorganize their tasks according to their work load. On the following we are describing some core activities of different important departments in IPDC. 4. Product line of IPDC IPDC specialized in project financing and provides innovative investment solutions. This includes investing in projects that add value and contribute to the country’s overall economic development. IPDC has also special focus in infrastructure and social sector projects. IPDC has also been proving innovative investment solutions and project advisory service to its clients in industrial and social sector like education and health care. The positive image of IPDC has been established through more than two decade of consistent commitment towards excellence in providing financial service. With a conscious effort to anticipate influence in the domestic and foreign environment, IPDC has the ability to adapt to the changing needs of time. IPDC envisages continuing and expanding its role as a catalyst in inspiring, strengthening and enhancing the financial sector development of the country. IPDC has pioneered the concept of lease financing in Bangladesh. It was one of the Industrial Development Leasing Company of Bangladesh Limited (IDLC). Another IPDC initiative has been developing the concept of house mortgage finance in the country. IPDC was also promoter shareholder of National Housing and Finance Company Ltd. (NHFL). IPDC has been credited with pioneering subscription of cumulative Redeemable Preference Share and issuance of Zero Coupon Bond through asset backed securitization as an alternate means of finance. The product pattern of IPDC can be presented as below 4. 1 – Corporate IPDC is specialized in corporate and project financing. Financial engineering and investment solution prescribed by IPDC are based on project needs. Various segment of the Corporate and project finance include 4. 1 Investment product: Corporate Service: Lease Finance Project Finance Appraisal †¢ Term Loan Project Loan Syndication †¢ Short Term Loan Working Capital Arrangement †¢ Work Order Finance Syndication Service †¢ Quasi Equity Investment Corporate Financial Advisory service †¢ Equity Investment Securi tization of Receivables Features, terms and conditions of corporate products are highly customized and negotiable. 4. 2 IPDC Retail Product With the commencement of retail business in July 2006, IPDC provides the wealth creation opportunity for individuals and investment prospects for institutions. This segment offer wide ranging liability products for all quality of people. Within a very short span of time IPDC was able to attract a broad range of individual and institutional clients. The lifeblood of the retail segment is its customer and IPDC offer personal and individual services to its clients. IPDC continuously strives to recognize the clients by anticipating and responding to client needs. 4. 3 Liability Products IPDC has possessed a wide liability product line in retail segment. The products are designed with the consideration of different targeted and niche market. 4. 4 Profit based Schemes: Under this schemes profit or return is paid to the investors after a certain time period. Products details are given below. Annual Profit Schemes (APS), Quarter Profit Schemes (APS), Monthly Profit Schemes (MPS) are given below Return paid of yearly APS QPS MPS |Term |1-3 Year | |Term |5Years 11 Months | |Maturity Amount |BDT 1,000,000. 00 | 4. 7 Millionaire Deposit Schemes (MDS): Under this scheme depositor initially have to deposit an initial amount then s/he has to continue a monthly installment till maturity. The products are as follows: |Initial Deposit |BDT 100,000. 00 |BDT 50,000. 00 | |Monthly Installment |BDT 10,000. 00 |BDT 10,000. 0 | |Term |5Year 7 Months |6 Years | |Maturity Amount |BDT 1,000,000. 00 |BDT 1,000,000. 00 | 4. 8 Deposit Premium Scheme (DPS): Under this scheme depositors have to make a monthly installment and at the maturity s/he will receive a fixed amount. Product details are as follows: |Monthly Installment |BDT 10,000. 00 | |Term |3 Years | |Maturity Amount |BDT 430,000. 0 | 4. 9 Fixed Deposit – Institutional IPDC is very much sincere to provide the highest value to the corporate fund. This scheme provides institutions the secured investment option with a maximum value of corporate fund. The terms, conditions, product features are highly customized and negotiable. 4. 10Asset Product In parallel to expanding our range of liability product, IPDC also plans to introduce various asset based retail products to serve the client needs with maximum possible effort and sincerity. This products are- 4. 10. 1 Auto Loan IPDC recently launched (January 2008) their auto loan product with a huge market campaign. The target markets of this product are salaried executives, business person, and self employed professional. Loan amount have to be repay over 60 months for reconditioned car and over 72 months for brand new car. Int. Rate and loan processing fees are very competitive. 4. 12 Commercial Innovativeness of IPDC IPDC is renowned for their innovative and smart commercial policy. They not only limit their commercial policy to go through the common policy and fantasy but also try to understand the client need, style, taste, aptitude. Accordingly they design their commercial policy to attract the consumers and increase their client base. On the following some real scenario is given. 5. Functions of IPDC 5. 1 Investment activities: Since 1981 IPDC is playing a major role in corporate financing for that reason IPDC become the market leader in corporate financing. For making the corporate financing more efficient and viable taking proper and correct investment decision is the vital important topic for IPDC, that’s why investment department is treated as the most important department in IPDC and investment activities is treated as the most distinctive competencies for IPDC. This part of this project report will completely focus the investing activities of Industrial Promotion and Development Company (IPDC) of Bangladesh Limited. Analyzing the current investment pattern of IPDC we can observe that IPDC make investment through following pattern: On the following we are trying to analyze the invest activities of IPDC with different aptitude. 5. 1. 1 Year wise Investment Activities Analysis On the initial stages of my analysis I would like to make a scenario view of IPDC’s investment activity analysis based on year to year. With this analysis we can get a clear view of the growth of IPDC’s investment activities over the year. | |2007 |2006 |2005 | |Gross Lease Receivable |478,205,708. 00 |1,294,301,161. 0 |1,772,506,869. 00 | |Less Unearned Income |160,404,858. 00 |207,939,772. 00 |368,344,630. 00 | |Net Lease Receivables |317,800,850. 00 |1,086,361,389. 00 |1,404,162,239. 00 | 5. 1. 2. 4 Short Term Financing This sort of financing represents disbursement of financing to different parties (local and foreign) for a maximum period of twelve months. Risk assessment plays a vital important role in this sort of financing. On the following the present scenario of short term financing of IPDC is given below. Balance at 1-Jan-07 |1,145,737,437. 00 | |Add: Addition |168,902,611. 00 | | |1,314,640,048. 00 | |Less: Recovery |637,376,570. 00 | |Balance at 31- Dec-07 |677,263,478. 00 | 5. 1. 2. 5 Advance against Lease Finance This represents disbursement made for procurement of leased asset which are yet to be executed. On the execution of lease, advances will be transferred to gross lease receivables. On the following pages the detail position of IPDC’s advance against lease position is presented. |Balance at 1-Jan-07 |29,200,000 | | Add: Addition |467,076,493 | | |496,276,493 | | Less: Recovery |428,276,493 | | Balance at 31- Dec-07 |68,000,000 | 5. 1. 3 Industry Sector Wise Investment Activities and Portfolio Analysis of IPDC Deciding the industry sector and the proportion of investment portfolio to be invested in each industry sector is one of the most important roles of IPDC’s investment activities. Because these activities can reduce the total volatility of the firm’s investment and achieve the maximum diversification of the investment. From the pie chart it is seen that â€Å"Miscellaneous Industry† and â€Å"Engendering and IT† industry is the most prominent and dominating sector of IPDC investment. The main reason behind it is that, IPDC always prefer collateral. Projects, which have fixed property (e. g. land, building and any other permanent development on the land), will always be in the lucrative option to IPDC. |Industry | No. f company |Amount Invested |Percentage (%) | | Bank FI |21 |283,566,860 |5. 36% | |Communication |3 |49471427 |0. 94% | |Engineering IT |48 |1157314877 |21. 89% | |Food Alliances |19 |505087855. 3 |9. 55% | |Textile |32 |724845158. 4 |13. 1% | |Medicine Chemistry |13 |449553993. 1 |8. 50% | |Service |29 |943016741. 3 |17. 83% | |Miscellaneous |74 |1174880760 |22. 22% | | | | | | |Total |239 |5,287,737,672 |100% | Lease finance is one of the distinctive competencies of IPDC and most of the leases financing facilities lead to the instrument, machinery, transports. For that reason â€Å"Engendering and IT† sector is being the prominent sector for IPDC investment. IPDC diversified its industry related risk through investment. In Bangladesh perspective industry influence on a particular company is insignificant. 5. 2 Financing Activities: Financing activities is a crucial part of any financial institution. Determination of source of financing, use of financing, matching the financial obligations’ maturity with the investment inflows, determination of the optimum cost of fund are some integral part of financing activities. |2003 | |Share Premium | 167,014,000 | |Statutory Reserve | 105,659,472 | |Revaluation Reserve | 23,627,792 | |Proposed Cash Dividend | 32,393,235 | |Proposed Stock Dividend | 64,786,470 | |Retained Earnings | 632,509,108 | |Total Shareholders Equity | 1,673,854,777 | IPDC is authorized to issue 10,000,000 shares @ BDT 100 each. Up to 31 December, 2007 total 6,487,647 shares is issued. At present the authorized share capital is (6,487,647 ? 100) BDT 647,864,700. 00. On the following share holding structure of IPDC is given- |Foreign |Tk |% | |Aga Khan Fund For Economic Development |330,749,100. 0 |51% | |Others |500. 00 |0% | |Domestic | | | |Government of the Peoples’ Republic of Bangladesh |141,750,000. 00 |22% | |Alliance Holdings Limited |14,707,300. 00 |2% | |Summit Industrial Mercantile Corporation |14,707,300. 00 |2% | |General Shareholders |145,950,200. 0 |23% | |Others |300 |0% | |Total |647,864,700. 00 |100% | Regulatory Capital: In accordance with the Financial Institutions Regulations, 1994 and Bangladesh Bank guidelines as stipulated in FID circular no. 02 of June 29, 2003, every Nan Banking Financial Institution which is registered in Bangladesh as a company has to increase its capital up to BDT 250 million within June 2006 or 6% of total liabilities which ever is higher. As at December 31, 2007, total capital of IPDC is BDT 1,688 million whic h is 30. 57% of its total liabilities. For the purpose of the minimum capital standards, a NBFI is considered adequately capitalized if core capital equals or exceeds the minimum capital. Core capital is defined as the stated value of ordinary shares, retained earnings plus statutory reserve and current year’s profit/ (loss). Core capital does not include any unrealized gain on securities held for trading and revaluation reserve of fixed assets. Total capital base of IPDC is used to meet all requirements. Total capital is defined as the sum of core capital plus provision for future losses equivalent to 1% of unclassified loans/leases. Following table shows core capital and total capital at December 31, 2007 and 2006. Core capital grew to BDT 1,650 million at December 31, 2007 from BDT 1,578 million at December 31, 2006. Total capital grew to BDT 1,688 million at the end of 2007 from BDT 1,619 million at year end 2006. |Total Shareholders Equity | 1,673,854,777. 00 | |Less Revaluation Reserve | 23,627,792. 00 | |Core Capital | 1,650,226,985. 00 | |Required Minimum Capital (6% of total liabilities) | 331,288,154. 0 | |Excess of Core Capital Over Minimum Capital | 1,318,938,831. 00 | |Core Capital | 1,650,226,985. 00 | |Add: Provision for Further Losses (1% of unclassified loans) | 37,598,028. 00 | |Total Capital | 1,687,825,013. 00 | |Required Minimum Capital (6% of total liabilities) | 331,288,154. 0 | |Excess of total Capital Over Required Capital | 1,356,536,859. 00 | 5. 2. 3 Debt Capital Structure of IPDC IPDC maintained the both local currency (LC) borrowing and foreign currency (FC) borrowing. The motivation that stimulate the foreign borrowing is the cost effectiveness and for the advantage for exchange rate fluctuation. On the following the detail breakdown of debt financing is given below. |In Foreign Currency |Amount |(%) | |German Investment Development Company( DEG) 122,427,387 |17% | |International Finance Corporation – IFC |84,875,000 |12% | |The OPEC Fund for International Development |61,727,551 |9% | |Total Foreign Currency Borrowing |269,029,938 |37% | |In Local Currency | | | |Credit Bridge Stand by Facility CBSF |237,522,497 |33% | |International Development Association – IDA |17,607,673 |2% | |Commercial Bank of Ceylon |50,000,001 |7% | |Pubali Bank Limited |55,177,317 |8% | |Uttara Bank Limited |95,351,182 |13% | |Total Local Currency Borrowing |455,658,670 |63% | |Total Debt Financing |724,688,608 |100% | Here, it seen see that 37% of total IPDC’s borrowing is foreign borrowing and remaining is Local currency borrowing. 5. 2. 4 – Other Source of Financing of IPDC Beside the capital structure, IPDC often have to rely on some other source of financing for conducting their day to day operation. On the following some of sources are described. Short term borrowing is one of the important sources of financing of IPDC. Among the short term loan bank overdraft and call loan is always preferable to IPDC. On the following the detail position of IPDC’s short term borrowing is given: |Bank Overdraft |Amount |(%) | |Citi Bank N. A. |185,571,750. 0 |38% | |Standard Chartered Bank |61,977,585. 00 |13% | |Total Bank OD |247,549,335 |51% | |Call Loan | | | |The Premier Bank Ltd |150,000,000 |31% | |Eastern Bank Ltd |40,000,000 |8% | |Prime Bank Ltd. 50,000,000 |10% | |Total Call Loan borrowing | |49% | | | | | |Total Debt Financing |724,688,608 |100% | 6. SWOT analysis of IPDC SWOT analysis is a very important part for organizational perspective. Through this analysis, a company identifies the strength and weakness of its product, operation and services. In addition, opportunities and threats are also pointed out form the market analysis which is eventually reflected in the company’s current and future plan. Strength: (Strong capital base Experienced management team (Coordination between the departments (Strong investment and retail team to increase client base (Good relationship with present and prospectus client (Diversified funding sources (Outstanding market share (Corporate shareholding structure (Diversified business exposure Weaknesses: (Significantly deterioration in Asset Quality having adequate provisions (High ownership concentration (Declining financial performance (Weak treasury management (More percentage of special assets than major competitors (Risk management (MIS should be more developed in treasury managem ent (High turnover rate in top and mid tier management Opportunities: (Business expansion opportunity (Market demand for diversified financial product (SME financing (Fund raising opportunity through new financial products (Capital market operation (Scope of more product diversification (Scope of doing merchant banking, fund management operation Threats: (Commercial banks’ portfolio (Commercial banks’ opportunity to enter in the operations (Increasing local and foreign cost of fund (New entrants into the market (Low entry barrier in the industry Contents: Executive summary1 Objectives of the report2 NBFI in Bangladesh2 IPDC at a glance5 Organizational structure8 IPDC product line10 Functions of IPDC13 SWOT analysis25 ORGANOGRAM OF IPDC Managing Director CEO Board Board Audit Committee DMD Executive- HR Corporate Communication Senior Manager- Legal Affairs Company Secretary Mgt. Associate- Legal Department Executive Board Secretariat Senior Manager- Internal Audit Manager Sr. Executives Executives Head of Operations Head of Retail Business CFO Head of Risk Management Head of Special Asset Management Head of Investment Manager Sr. Executives Ass. Executives Manager Executives Mgt. Trainee Sr. Manager Manager Executives Executive Employee on Contract GSS IT Deposit Treasury Credit Admin Executives Manager Executives Sr. Executives Executives Ass. Executive Sr. Manager Asst. Manager Sr. Executives Executives Non Managerial Employees Figure: Organogram of IPDC [pic] Product Line Retail Product Corporate and Project Finance Figure- 2. 4 – IPDC Product line Asset Product Liability Product Corporate Service Investment Product Figure- 3. 2 – Product Segment Wise (Portfolio) Investment Activities Analysis Figure- 3. 3 – Industry Wise Investment Analysis of IPDC Table 3. 1 – Industry Wise Investment Analysis of IPDC Source: Annual Report, Economic Trend FID, BB Figure- 1. 3 – Banks NBFIs activities on GDP share