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		<title>Legal Constrain and Customer Desire Compared on NCC Bank Ltd (Part 2)</title>
		<link>http://www.assignmentpoint.com/business/finance/legal-constrain-and-customer-desire-compared-on-ncc-bank-ltd-part-2.html</link>
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		<pubDate>Tue, 18 Jun 2013 07:03:05 +0000</pubDate>
		<dc:creator>imam7</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Internship Report]]></category>

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		<description><![CDATA[<p>CHAPTER: 5 Credit Management of NCC Bank Limited  Introduction The word “CREDIT” is derived from Latin word “credo”. Bank lending is important for the economy in the sense that it can simultaneously finance all of the sub-sectors of financial arena, which comprises agriculture, commercial and industrial activities of a nation. Lending of money to different [...]</p><p>The post <a href="http://www.assignmentpoint.com/business/finance/legal-constrain-and-customer-desire-compared-on-ncc-bank-ltd-part-2.html">Legal Constrain and Customer Desire Compared on NCC Bank Ltd (Part 2)</a> appeared first on <a href="http://www.assignmentpoint.com">Assignment Point</a>.</p>]]></description>
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		<title>Legal Constrain and Customer Desire Compared on NCC Bank Ltd</title>
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		<pubDate>Tue, 18 Jun 2013 07:01:24 +0000</pubDate>
		<dc:creator>imam7</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[Internship Report]]></category>

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		<description><![CDATA[<p>Executive Summary National Credit and Commerce Bank Limited (NCC Bank) is a well-established Bank in Bangladesh. It is developing and expanding its branches in the country with innovative products and banking services, to gain greater acceptance as an effective and efficient means of intermediation and to contribute to the overall wealth creation. This report is [...]</p><p>The post <a href="http://www.assignmentpoint.com/business/finance/legal-constrain-and-customer-desire-compared-on-ncc-bank-ltd.html">Legal Constrain and Customer Desire Compared on NCC Bank Ltd</a> appeared first on <a href="http://www.assignmentpoint.com">Assignment Point</a>.</p>]]></description>
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		<title>Different Tasks in Credit Department of BASIC Bank Limited</title>
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		<pubDate>Tue, 18 Jun 2013 06:34:21 +0000</pubDate>
		<dc:creator>imam7</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA["I believe". Speaking broadly]]></category>
		<category><![CDATA[000 only in respect of projects having fixed cost up to taka 50 lac.  Memorandum and Articles of Association together with the certificates of registration/ incorporation and commencement of business]]></category>
		<category><![CDATA[000 only in respect of projects having fixed costs above taka 50 lacs • Taka 5]]></category>
		<category><![CDATA[000 per borrower. There is no size limit for loan to NGOs. Interest Rate: For lending to NGO members the Bank charges 10% interest rate. When BASIC Bank handles Micro Credit operation on its own]]></category>
		<category><![CDATA[000. it may be relaxed for deserving cases. The minimum loan size is Tk. 2]]></category>
		<category><![CDATA[031.73 million against Taka 61]]></category>
		<category><![CDATA[034.74 Figure: distribution of loan and advance The bigger portion of BASIC Bank’s portfolio consists with export and import finance. L/C opening is one of their major tasks. They also have a great am]]></category>
		<category><![CDATA[034.74 Mercantile bank Sectors/Segments Million BDT Trade Finance 9]]></category>
		<category><![CDATA[037.19 2673.39 HSBC Bank 61]]></category>
		<category><![CDATA[037.19 HSBC Bank Investments Million BDT Loan]]></category>
		<category><![CDATA[061.10 Total 137]]></category>
		<category><![CDATA[072.23 Islami Bank Investments Million BDT General investment 287]]></category>
		<category><![CDATA[084.62 712.42 Janata Bank 229]]></category>
		<category><![CDATA[087.80 Export Finance 33]]></category>
		<category><![CDATA[106.46 Pharmaceuticals 1]]></category>
		<category><![CDATA[110.24 Other assets 3]]></category>
		<category><![CDATA[136.78 Total 316]]></category>
		<category><![CDATA[174.73 Total 79]]></category>
		<category><![CDATA[1988]]></category>
		<category><![CDATA[1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industr]]></category>
		<category><![CDATA[2013]]></category>
		<category><![CDATA[255.94 Housing 1]]></category>
		<category><![CDATA[259.60 million (86.28% of Total liabilities) in 2010. Total amount of deposit was increased by 27.18 percent. Loans and advances increased by 22.75 percent to Taka 56]]></category>
		<category><![CDATA[266.48 162.15 Major findings at a glance:  BASIC bank use LRA technique for credit risk management as per Bangladesh Bank manual  Many officers are not so much efficient in this term.  It follow ri]]></category>
		<category><![CDATA[266.48 Criteria 3: Credit rating Bank Long term Short term Credit rating firm 2010 2011 2010 2011 BASIC Bank Ltd AA2 AA2 ST-2 ST-2 CRAB Mercantile Bank AA- AA- ST-2 ST-2 CRISL Janata Bank A A+ ST-3 ST]]></category>
		<category><![CDATA[280.06 Criteria 2: Distribution of total loan investment in 2011 BASIC Bank Limited Investment area Million BDT Industrial Credit 33]]></category>
		<category><![CDATA[285.33 Total 61]]></category>
		<category><![CDATA[323.05 Commercial Credit 22]]></category>
		<category><![CDATA[323.05 million at the end of 2011 compared to Taka 27]]></category>
		<category><![CDATA[329.11 Transportation 1]]></category>
		<category><![CDATA[338.92 Engineering (Iron and Steel/Electrical) 8]]></category>
		<category><![CDATA[341.51 million in 2010. All out efforts were made to improve the recovery rate and control non-performing loans and advances. Relative figure of classified (non-performing) loans and advances remain s]]></category>
		<category><![CDATA[357.69 SME 3]]></category>
		<category><![CDATA[425.34 1]]></category>
		<category><![CDATA[444.90 Islami bank 4]]></category>
		<category><![CDATA[485.47 4]]></category>
		<category><![CDATA[485.59 Overdrafts 2]]></category>
		<category><![CDATA[489.79 894.37 Mercantile Bank 79]]></category>
		<category><![CDATA[503.61 Agriculture 679.81 Hospital and Medical Services 1]]></category>
		<category><![CDATA[569.39 million in previous year registering an increase by 26.74 percent. Total deposit of the Bank at the end of 2011 stood at Taka 62]]></category>
		<category><![CDATA[614.35 4]]></category>
		<category><![CDATA[624.59 HSBC Bank 2]]></category>
		<category><![CDATA[642.77 Telecommunication 226.50 Others 30]]></category>
		<category><![CDATA[650.73 million (80.29% of Total liabilities) compared to Taka 49]]></category>
		<category><![CDATA[727.40 Micro Credit 835.39 Import Finance 47]]></category>
		<category><![CDATA[727.40 million compared to Taka 16]]></category>
		<category><![CDATA[734.17 Janata bank 4]]></category>
		<category><![CDATA[758.35 Exports (RMG) 12]]></category>
		<category><![CDATA[768.18 Textile (Linkage Industry) 2]]></category>
		<category><![CDATA[777.89 million of 2010. Total outstanding commercial loans stood at Taka 22]]></category>
		<category><![CDATA[794.684 Total 256]]></category>
		<category><![CDATA[833.56 Food]]></category>
		<category><![CDATA[836.79 73.74 2]]></category>
		<category><![CDATA[861.38 Bills purchased and discounted 17]]></category>
		<category><![CDATA[866.07 Bills purchased and discounted 27]]></category>
		<category><![CDATA[884.75 2]]></category>
		<category><![CDATA[884.76 million in 2011 compared to Taka 46]]></category>
		<category><![CDATA[907.97 4]]></category>
		<category><![CDATA[915.32 million in 2010 reflecting a growth of 34.36 percent. Monetary and Financial Resources BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Mem]]></category>
		<category><![CDATA[925.876 Cash credits 75]]></category>
		<category><![CDATA[928.79 Fixed asset including premises 7]]></category>
		<category><![CDATA[933.64 Islami Bank(investment) 316]]></category>
		<category><![CDATA[981.15 Bills purchased and discounted 4]]></category>
		<category><![CDATA[999.80 2]]></category>
		<category><![CDATA[999.80 Janata Bank In Bangladesh Million BDT Loans 149]]></category>
		<category><![CDATA[a bank should assess the degree of risk associated with each loan and its profitability. In this connection prior assessment of and follow up on a loan transaction constitute essential ingredients of ]]></category>
		<category><![CDATA[a banker allows his customer to borrow money up to a certain limit. CC is a favorite mode of borrowing by traders]]></category>
		<category><![CDATA[a company may fail and the risk of failure is called company position risk. It depends on- i. Performance risk: If a company fails to perform well enough to repay the loan because of its weakness unde]]></category>
		<category><![CDATA[a German development bank. All of these funding sources are for relatively longer period. Receiving the credit lines from ADB and KfW has been a recongniting of the Bank's highly satisfactory performa]]></category>
		<category><![CDATA[A. M. (2011). Risk Management Practices: A Critical Diagnosis of Some Selected Commercial Banks in Bangladesh. Volume–VI]]></category>
		<category><![CDATA[ability to repay]]></category>
		<category><![CDATA[account conduct]]></category>
		<category><![CDATA[adherence to lending guidelines]]></category>
		<category><![CDATA[adverse fluctuation of foreign exchange rates etc. Scarcity of supplies causes production loss. Supply scarcity causes due to- labor unrest]]></category>
		<category><![CDATA[agro-based industries 7.00% ii. Others 7.00% b. Advance against inland documentary bills accepted by banks i. Payment in foreign currency 15.00% ii. Payment in local currency 17.00% 5. Commercial lend]]></category>
		<category><![CDATA[amount]]></category>
		<category><![CDATA[and access to alternative sources of funds is outstanding. Credit management scenario The word "Credit" is derived from the Latin word "credo" meaning]]></category>
		<category><![CDATA[and at least annually thereafter for all facilities. The results of this assessment should be presented in a credit application that originates from the Relationship Manager]]></category>
		<category><![CDATA[and FDR; short term trade finance]]></category>
		<category><![CDATA[and is recommended by Branch Credit Committee (BCC). The RM should be the owner of the customer relationship]]></category>
		<category><![CDATA[and must be held responsible to ensure the accuracy of the entire credit application submitted for approval. RMs must be familiar with the bank’s Lending Guidelines and should conduct due diligence on]]></category>
		<category><![CDATA[and other banks or financial institutions. Credit risk management needs to be a robust process that enables banks to proactively manage loan portfolios in order to minimize losses and earn an acceptab]]></category>
		<category><![CDATA[and sealed and signed by the sponsoring directors along with their attested photographs duly affixed in the space provided for.  Draft layout plan of the proposed building and the estimate for constr]]></category>
		<category><![CDATA[and then observe periods elapsed for repayments. All troubled loans are then further reclassified as special mention account (SMA)]]></category>
		<category><![CDATA[and truck receipt. The purchase of bill of exchange is drawn at an issuance]]></category>
		<category><![CDATA[approximately 70%. Recommendations After going through a thorough and in-depth analysis and view on the Credit Risk Management scenario of BASIC Bank]]></category>
		<category><![CDATA[arises from the bank’s dealings with or lending to corporate]]></category>
		<category><![CDATA[as it is the major risk factor in most bank business. Therefore]]></category>
		<category><![CDATA[as per Industrial policy 1999 approved by the Cabinet]]></category>
		<category><![CDATA[as suggested by Bangladesh Bank]]></category>
		<category><![CDATA[audited balance sheets and profit & loss statements follow client instructions. • Unwillingness to disclose information: Generally]]></category>
		<category><![CDATA[Bangladesh Bank]]></category>
		<category><![CDATA[Bangladesh Bank has provided a guideline as policy guideline. In this guideline these things are included- Lending Guidelines  Industry and Business Segment Focus  Types of Loan Facilities  Single ]]></category>
		<category><![CDATA[Bangladesh follows both “overdue criteria” and “qualitative criteria” to deem a loan classified or unclassified. According to overdue criteria]]></category>
		<category><![CDATA[Bangladesh Krishi Bank (BKB) and Nationalized Banks also and the special form should be developed for the agricultural lending. Since banks and financial institutions play an important role in the pro]]></category>
		<category><![CDATA[Bangladesh Small Industries and Commerce Bank Ltd]]></category>
		<category><![CDATA[bank find that invariably a small portion of the loan become delinquent and eventually must be written off. The loan review process is a crucial tool in reducing losses and in monitoring loan quality.]]></category>
		<category><![CDATA[bank managers usually divide all loans into five categories (continuous loan]]></category>
		<category><![CDATA[banks used to give more emphasis to the security without considering the business risk of the borrowers at the time of sanctioning loan. But CRM does not give more emphasis on the security rather it g]]></category>
		<category><![CDATA[BASIC Bank follows the Bangladesh Bank guidelines and its credit policy set by the board of directors. The frequency of the review of individual loans is determined by the size and quality of the loan]]></category>
		<category><![CDATA[BASIC Bank goes for taking legal action against the delinquent client to recover the loan. The branch manager sends a letter to the head office department informing the borrower’s reluctance to repay ]]></category>
		<category><![CDATA[BASIC Bank is a commercial Bank in the private sector. It is therefore evident that BASIC Bank would seek fair return on owner’s equity as of its one prime goal. The profit-earning goal is sought to b]]></category>
		<category><![CDATA[BASIC Bank is tirelessly striving. However]]></category>
		<category><![CDATA[BASIC Bank is unique in its objectives. The bank is entrusted with the responsibility of providing short]]></category>
		<category><![CDATA[BASIC Bank Limited is no exception in performing its core functions viz. Mobilization of fund and utilizing such mobilized fund for profitable purposes. Mobilization of Fund: The main sources of fund ]]></category>
		<category><![CDATA[BASIC Bank Limited received funds from :  Bangladesh Bank  Asian Development Bank (ADB)  KfW (kreditanstalt fur Wieder-aufbau Credit Institution for Reconstruction)]]></category>
		<category><![CDATA[BASIC’s priority is in promoting and financing development of small and cottage industries. • Besides]]></category>
		<category><![CDATA[Beverage]]></category>
		<category><![CDATA[BLC/ PAD]]></category>
		<category><![CDATA[board control over executive functions etc. Management: The Managing Director heads the management. The two General Managers and Departmental Heads in the Head Office assist him. BASIC Bank is differe]]></category>
		<category><![CDATA[BSCIC’s letter of consent]]></category>
		<category><![CDATA[business raw-materials]]></category>
		<category><![CDATA[but is very much required for medium and long term loan. • Political Pressure: Also at times it is seen that there are many loans which are not sanctioned at the branch level because they are consider]]></category>
		<category><![CDATA[buyer]]></category>
		<category><![CDATA[c. Official record and MIS of the bank Limitations Though I have given utmost effort to prepare this paper but there are some limitations of the study. They are as follows- 1. This paper has focused o]]></category>
		<category><![CDATA[capacity and capital of the borrower]]></category>
		<category><![CDATA[cash credit]]></category>
		<category><![CDATA[cash generating ability etc. ii. Resilience risk: When a company fails due to lack of its flexibility to unexpected external conditions]]></category>
		<category><![CDATA[changes in regulations]]></category>
		<category><![CDATA[commercial]]></category>
		<category><![CDATA[commercial and industrial activities of a nation. In our country defaulting loan is an alarming situation for banking sector. Despite the application of a number of remedial measures]]></category>
		<category><![CDATA[commercial credit]]></category>
		<category><![CDATA[competitors do not have the habit of disclosing their business information. They always tend to maintain secrecy for their business interest. But LRA calls for submission of competitor’s performance. ]]></category>
		<category><![CDATA[consists of the Industry Risk and the Company Risk. a) Industry Risk: Due to some external reasons a business may fail and the risk]]></category>
		<category><![CDATA[consolidation and dis-intermediation]]></category>
		<category><![CDATA[constant monitoring of the projects on the one hand and timely mobilizing the equity on the other hand cannot be under estimated for efficient implementation of a project. The following factors are ta]]></category>
		<category><![CDATA[constitution and liquidity consideration. It is given against land and building along with machinery]]></category>
		<category><![CDATA[copy of lease deed is obtained.  For location of industry in other areas]]></category>
		<category><![CDATA[corporate or non-corporate firm). More generally the term credit is used narrowly for debt finance. In banking area credit is considered as one of the major functions. Bank lending is important for th]]></category>
		<category><![CDATA[court order is necessary and in case of registered mortgage court’s order is not necessary for sale / disposal of the mortgaged property for adjustment of advance. Disbursement: A proper disbursement ]]></category>
		<category><![CDATA[Covenants]]></category>
		<category><![CDATA[credit administration]]></category>
		<category><![CDATA[credit is finance made available by one party (lender]]></category>
		<category><![CDATA[credit monitoring and credit recovery. By doing so]]></category>
		<category><![CDATA[credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. Credit r]]></category>
		<category><![CDATA[credit risk management practice in lending decision of bank]]></category>
		<category><![CDATA[critical raw materials only available from one supplier]]></category>
		<category><![CDATA[CRM is not the ready prescription on all ills but it would be helpful to the BASIC Bank to go one step forward of their mission to minimize lending risk. This practice of CRM should be made compulsory]]></category>
		<category><![CDATA[demand loan]]></category>
		<category><![CDATA[demand loan or a term loan which will remain overdue for a period of 90 days or more will be put in to special mention account and interest accrued on such loan will be credited to interest suspense a]]></category>
		<category><![CDATA[deposited in the bank. It is given by the branch manager discretionary power. ii. Cash Credit (CC): By this agreement]]></category>
		<category><![CDATA[different types of risks associated with credit risk management]]></category>
		<category><![CDATA[documentation etc provide a picture of credit management of the bank. Objectives Since this internship program was a part of my study my first objective is to fulfill the requirement of my graduation ]]></category>
		<category><![CDATA[documents.  The local current loan of the Bank to be disbursed in one or more installment according to nature of project  The borrower must use the loan for the purpose for which the advance is exte]]></category>
		<category><![CDATA[doubtful and bad/losses to comply with international norms of loan classification. To fight with this situation]]></category>
		<category><![CDATA[DP Notes etc  Secondary Securities- These securities are tangible securities that can be realized from sale proceeds or transfer of property. Example- Immovable properties. The modes of charging secu]]></category>
		<category><![CDATA[duly filled in]]></category>
		<category><![CDATA[dynamic global economy and the increasing pressure of globalization]]></category>
		<category><![CDATA[each year’s cash inflow is discounted at the required rate of return and these present values are cumulated until they equal or exceed the amount invested. In its simplest terms]]></category>
		<category><![CDATA[EBP etc) Overdue period will be accounted the day following the date of expiry of such loan • Less than 6 months • 6 months or more but less than 9 months • 9 months or more but less than 12 months • ]]></category>
		<category><![CDATA[economy and political conditions which may endanger the reliability of the borrower account • The analysis of the borrower’s business performance and comparison of the projected and actual to find any]]></category>
		<category><![CDATA[Edible Oil]]></category>
		<category><![CDATA[erratic power supply]]></category>
		<category><![CDATA[etc 7]]></category>
		<category><![CDATA[etc for meeting their working capital requirements. It is operated like overdraft account. Depending on the needs of the business]]></category>
		<category><![CDATA[excellent and unique financial institution in the banking regime. The sponsors perception were since inception and till now that BASIC Bank should be distinguished from other private owned and managed]]></category>
		<category><![CDATA[expansion and modernization of industrial units and also for financing permanent current assets. In this method]]></category>
		<category><![CDATA[expected usage of funds]]></category>
		<category><![CDATA[experience]]></category>
		<category><![CDATA[expiry]]></category>
		<category><![CDATA[factors related to credit]]></category>
		<category><![CDATA[financial and economic points of view. c) Technical viability:  The project should be technically sound and environment- friendly.  Technology transfer in case of borrowed know-how ought to be ensur]]></category>
		<category><![CDATA[fixed assets and operating costs together do not exceed Tk. 0.50 million per unit of cottage Leading Criteria of industrial credit scheme Leading criteria is an important part of credit risk managemen]]></category>
		<category><![CDATA[for functional purposes]]></category>
		<category><![CDATA[foreign trade. Credit is the most fundamental issue in our banking sector. Default culture is the most common phenomenon in the banking sector of Bangladesh. Like other Govt. banks]]></category>
		<category><![CDATA[formation of self-help groups and monitoring and supervision of loan utilization. For this the NGO is paid a fee by the Bank.  BASIC provides loan to the urban poor borrowers direct without the assis]]></category>
		<category><![CDATA[from www.bangladesh-bank.org: http://www.bangladesh-bank.org/ MD.MASUKUJJAMAN]]></category>
		<category><![CDATA[frozen food]]></category>
		<category><![CDATA[group formation and monitoring and supervision of loan utilization Borrowers make repayment to the Bank. Loan Size: Loan may be sanctioned to individual members organized in a group as well as to NGOs]]></category>
		<category><![CDATA[Gulshan branch. The major focus of BASIC bank is financing in business area. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financin]]></category>
		<category><![CDATA[handling of import and export business. • BASIC offers Micro credit to the urban poor through linkage with NGO’s with a view to facilitating their access to the formal financial market. Corporate Stra]]></category>
		<category><![CDATA[has been defined as an industrial undertaking whose total fixed investment is less than Tk.100 million. The credit portfolio of BASIC Bank consists of industrial credit]]></category>
		<category><![CDATA[he obtains proper documents executed from the borrower to protect him against willful defaults. Documents contain the precise terms of granting loans and they serve as important evidence in the law co]]></category>
		<category><![CDATA[historical financial analysis]]></category>
		<category><![CDATA[hypothecation of goods and land and building. iv. Bills Portfolio: Branch purchases demand bills of exchange that are called “Draft” accompanied by documents of title to goods such as bill of lading]]></category>
		<category><![CDATA[hypothecation of goods and personal guarantee of directors.  Cash Credit (Pledge): Pledge is the bailment of goods as security for payment of a debt or performance of a promise. Transfer of possessio]]></category>
		<category><![CDATA[i.e. for a certain period maturing on a future date and not payable on demand or sight. v. Term Loan: BASIC Bank is advancing both short and medium term credit to the industrial sector on the basis of]]></category>
		<category><![CDATA[if a special power of attorney is taken]]></category>
		<category><![CDATA[if drawn strictly in terms of the letter of credit. In fact]]></category>
		<category><![CDATA[if required. However ensure that all the pages and annexure are signed under official seal. Also ensures that all the facts/ evidences have been enclosed properly including three feasibility reports/ ]]></category>
		<category><![CDATA[imposition of import tariffs]]></category>
		<category><![CDATA[imposition of power controls makes supplies scarce]]></category>
		<category><![CDATA[in most cases they do not maintain proper records of their transactions]]></category>
		<category><![CDATA[in that case]]></category>
		<category><![CDATA[increased competition]]></category>
		<category><![CDATA[independence of credit analysis/ risk management section at branch level is not fully ensured. • Economic factors: The various components at the macro and micro level of our national economy are not y]]></category>
		<category><![CDATA[individuals]]></category>
		<category><![CDATA[industrial who are in need of fund for investment. Like other business firm]]></category>
		<category><![CDATA[industrialists]]></category>
		<category><![CDATA[industry analysis]]></category>
		<category><![CDATA[industry growth]]></category>
		<category><![CDATA[instead of crediting the same to income account. This will help banks to look at accounts with potential problems in a focused manner and it will capture early warning signals for accounts showing fir]]></category>
		<category><![CDATA[integrity]]></category>
		<category><![CDATA[Interest)  Security arrangements In addition]]></category>
		<category><![CDATA[Interest)  Security Arrangements In addition to this risks some other risk areas should be considered such as borrower analysis]]></category>
		<category><![CDATA[internal fund generation]]></category>
		<category><![CDATA[Internship Report]]></category>
		<category><![CDATA[Introduction The report]]></category>
		<category><![CDATA[is called industry risk. It has two components: i. Supply risk: It indicates the risk of failure of the business due to disruption in the supply of inputs resulting from their price]]></category>
		<category><![CDATA[is indicative of the nature of the bank. It is blend of development and commercial banking functions. As a one of the soundest banks in Bangladesh]]></category>
		<category><![CDATA[is not present in this technique]]></category>
		<category><![CDATA[it can be disposed off without going to the court. Pledge: Pledge is the bailment of goods as security for payment of a debt or performance or promise. Here]]></category>
		<category><![CDATA[it can be said that the purpose of appraisal is to be sure that the proposed advance will be safe]]></category>
		<category><![CDATA[it collects deposit through: a. Current Deposit b. Savings Deposit c. Term Deposit d. Scheme Deposit Borrowing Apart from deposit]]></category>
		<category><![CDATA[it covers the basic areas of project viability.  Joint report between the bank and the borrower is prepared for informal sector.  The bank sometimes seeks advice from a panel of experts whose servic]]></category>
		<category><![CDATA[it has been observed that banks in Bangladesh used to operate funds business i.e. lending activities under security-oriented principle. Before 1989]]></category>
		<category><![CDATA[it is essential that banks have robust credit risk management policies and procedures that are sensitive and responsive to these changes. CREDIT RISK MANAGEMENT OF BASIC BANK Credit Risk Management is]]></category>
		<category><![CDATA[it is the duty of our bankers to manage their loan portfolio very carefully. Our national economy has been suffering enough for the misuse of banks’ money in loans and advance and wastage of public as]]></category>
		<category><![CDATA[it is very important to assess its existing or projected strength. In many cases up-to-date and reliable data like production]]></category>
		<category><![CDATA[it must be said that compared to other Banks in their sector]]></category>
		<category><![CDATA[it shall be the responsibility of the borrower to make prompt arrangements in accordance with financial plan approved by the bank to provide the necessary funds. Credit risk management Risk is inheren]]></category>
		<category><![CDATA[it was observed that the credit officers are timely preparing the report and taking the following supervision techniques: 1. Loan account statement check to find out: • Whether the limit is within tha]]></category>
		<category><![CDATA[its liquidity and the strengths of the owner/key personnel’s connections. 2) Management risk: If the management of a company fails to use the company’s position effectively]]></category>
		<category><![CDATA[lending officers have to rely much on audited financial statements. But in practical situation]]></category>
		<category><![CDATA[liberalization]]></category>
		<category><![CDATA[LIM]]></category>
		<category><![CDATA[limitation and appropriate method. It gave me an initial idea about the field. 1. Primary Sources: a. Interviewing the bank officials of Credit Risk Management division and b. Observing practical work]]></category>
		<category><![CDATA[liquid]]></category>
		<category><![CDATA[loan default problem continued to haunt them. Since 1989]]></category>
		<category><![CDATA[loan structure]]></category>
		<category><![CDATA[losing of a single large customer etc. To assess sales risk at first we have to analyzes industry turnover and compare the same with other two major competitors. Next we have to assess how easy it is ]]></category>
		<category><![CDATA[LTR etc) Overdue period will be accounted from the day following the date of expiry of such loan • Less than 6 months • 6 months or more but less than 9 months • 9 months or more but less than 12 mont]]></category>
		<category><![CDATA[machinery and equipment]]></category>
		<category><![CDATA[managing partner]]></category>
		<category><![CDATA[medium and long term loans and other financial assistance for promotion of industrial sectors. The Memorandum and Articles of Association of the bank stipulate that 50 percent of loan able funds shall]]></category>
		<category><![CDATA[medium term and long term capital finance to viable new small scale industry (SSI) projects and BMRE of SSI projects which will fulfill the banks criteria of viability and acceptability. Project appra]]></category>
		<category><![CDATA[micro credit]]></category>
		<category><![CDATA[micro credit area has a very small investment although it was their focused area in initial stage. Comparative analysis Criteria 1:Profit Profi t after Tax (million BDT) Year 2010 2011 Basic bank 660.]]></category>
		<category><![CDATA[mitigating factors]]></category>
		<category><![CDATA[mode wise and sector wise. Classification of Advance: Commercial & Industrial Credit 1. Industrial Credit Scheme. 2. Micro Credit Scheme for the poor. 3. Commercial credit. 1. Industrial Credit Sc]]></category>
		<category><![CDATA[modify or withdraw any or all the terms of the loan at any time without assigning any reason whatsoever or to terminate/ call back the loan facility at any time for which bank or its official cannot b]]></category>
		<category><![CDATA[name lending etc. Types of loans and advances offered by BASIC Bank The making of loan and advance is always profitable to a bank. As the bank mobilizes savings from the general people in the form of ]]></category>
		<category><![CDATA[nature of facility]]></category>
		<category><![CDATA[Number–01.]]></category>
		<category><![CDATA[one for investment cost above taka 2.5 million and the rest for borrowers of informal sector. Guidelines for submission of Loan Application Form The borrower is provided with instruction papers which ]]></category>
		<category><![CDATA[one of them is to maximize profit through optimum utilization of resources by providing best customers service. The rest are as follows: • To employ funds for profitable purpose in various fields with]]></category>
		<category><![CDATA[or shareholder/owner) to another (borrower]]></category>
		<category><![CDATA[over drafts 56]]></category>
		<category><![CDATA[particulars of the land]]></category>
		<category><![CDATA[PC]]></category>
		<category><![CDATA[performance data for major competitors are inadequate]]></category>
		<category><![CDATA[permission/ no-objection for setting up the small industry is obtained from the appropriate authorities.  Utility agency’s letter of consent for providing necessary utility services to the unit to be]]></category>
		<category><![CDATA[personal guarantee of directors and hypothecation of raw materials. vi. Letter of Credit: An undertaking by the bank to make payment to the seller subject to submission of documents drawn in strict co]]></category>
		<category><![CDATA[possibility of default may arise. In other words]]></category>
		<category><![CDATA[power]]></category>
		<category><![CDATA[premises etc. The price]]></category>
		<category><![CDATA[price quotation of 3 suppliers together with illustrated brochures and literatures should be submitted for both imported and local machinery.  Consent letter from Power Development Board/ Rural Devel]]></category>
		<category><![CDATA[principals and guarantors to ensure such parties are in fact who they represent themselves to be. All banks should have established KNOW YOUR CUSOMTER (KYC) and Money Laundering guidelines which shoul]]></category>
		<category><![CDATA[principals and guarantors. It is essential that RMs know their customers and conduct due diligence on new borrowers]]></category>
		<category><![CDATA[private banks also suffer from this problem. So it’s very important to have an effective and sound credit risk management system in place which will help the bank mitigate its risk factors and carry o]]></category>
		<category><![CDATA[Process]]></category>
		<category><![CDATA[profitable and covered by adequate security. At the time of credit proposal]]></category>
		<category><![CDATA[projected financial performance]]></category>
		<category><![CDATA[proposed to be prepared as a part of my graduation study will be based on my 3 months internship in BASIC Bank. The selected topic for report is “Credit management of BASIC Bank Limited”. This is a re]]></category>
		<category><![CDATA[purpose]]></category>
		<category><![CDATA[qualified and reliable surveyor institutions to assess value of security along with its quality and market demand are very scarce in Bangladesh. • Lack of skill and knowledge of the personnel: Human r]]></category>
		<category><![CDATA[quality and competitors • Whether the amount disbursed was used properly • Whether the management has given its full effort in managing the business No banker wants the loan to be turned into bad; at ]]></category>
		<category><![CDATA[quality or quantity of supplies may be disrupted because of the following measures. The price of supplies may be disrupted due to removal of price control by Government]]></category>
		<category><![CDATA[quality service to the clients is another important goal of BASIC Bank. Objectives of the BASIC Bank: • As mentioned earlier]]></category>
		<category><![CDATA[quantity or quality. The inputs of supply risk are labor]]></category>
		<category><![CDATA[quick decision making in disposal of cases is ensured. Achievements The performance of BASIC Bank Limited has been satisfactory since its inception in respect of all the measurement parameters. At the]]></category>
		<category><![CDATA[railway receipt]]></category>
		<category><![CDATA[rate of interest]]></category>
		<category><![CDATA[rated/ actual annual production capacity for the past operating years]]></category>
		<category><![CDATA[raw materials]]></category>
		<category><![CDATA[realistic business strategy]]></category>
		<category><![CDATA[received from the borrowers is promptly reviewed/ scanned for some signals that may need special close attention of Bank Management. Branches of the bank are effectively utilized for project supervisi]]></category>
		<category><![CDATA[recycling of advances is important without which the bank’s liquidity is in jeopardy. Besides that the community doesn’t get benefited unless new advances and new borrowers are encouraged. Strategic s]]></category>
		<category><![CDATA[relevant skill etc. ii. Management integrity risk: Management integrity risk is the risk that the company fails to repay its loan due to lack of management integrity. Management integrity is a combina]]></category>
		<category><![CDATA[renovation]]></category>
		<category><![CDATA[repayment capacity and cash flow projection of the project. The criteria specified in the LRA manual are very much appropriate and pragmatic to minimize the risks of lending. But in some cases it beco]]></category>
		<category><![CDATA[Repayment Schedule]]></category>
		<category><![CDATA[reports]]></category>
		<category><![CDATA[risk management and transaction information including trade & Forex. Given the fast changing]]></category>
		<category><![CDATA[sales forecast etc. do not contribute enough to the Lending Risk Analysis (LRA). • Legal environment: Analysis of security risk often does not become accurate because of lengthy and complicated legal ]]></category>
		<category><![CDATA[sales performance and financial position of the company/ firm. Procedure for Processing Loan Application In setting up procedures for the evaluation/ approval of small projects]]></category>
		<category><![CDATA[sales turnover]]></category>
		<category><![CDATA[Sanchaypatra]]></category>
		<category><![CDATA[savings]]></category>
		<category><![CDATA[security]]></category>
		<category><![CDATA[security also loses value before it is realized. Due to lack of experienced]]></category>
		<category><![CDATA[security and the following terms and conditions:  Before availing the loan all documentation formalities must be completed. Registered power of attorney in favor of BASIC Bank to sell the mortgaged p]]></category>
		<category><![CDATA[seller]]></category>
		<category><![CDATA[site visit and other collateral keep strictly  If any suspicious loan application arise then interest rate grow high and loan amount are sanction in several part.  Bangladesh Bank introduced On-line]]></category>
		<category><![CDATA[so they fail to provide accurate data. Experience shows that even the financial statements submitted by the applicants cannot be relied upon. Inconsistencies are observed in the information provided b]]></category>
		<category><![CDATA[some intermediate objectives of the loan review of BASIC Bank are as follows: • To detect actual or potential bad loans as early as possible • To ensure that the loan policy is followed • To inform ma]]></category>
		<category><![CDATA[started its operations from the 21st of January]]></category>
		<category><![CDATA[statement of account]]></category>
		<category><![CDATA[STD]]></category>
		<category><![CDATA[Strategic Planning]]></category>
		<category><![CDATA[substandard]]></category>
		<category><![CDATA[such as current]]></category>
		<category><![CDATA[supplier/buyer analysis]]></category>
		<category><![CDATA[supply]]></category>
		<category><![CDATA[supply of raw materials disrupted by transport difficulties]]></category>
		<category><![CDATA[technical]]></category>
		<category><![CDATA[term loan payable in more than five years and short-term agricultural credit / micro credit)]]></category>
		<category><![CDATA[term loan payable within five years]]></category>
		<category><![CDATA[that BASIC Bank cab grows as a leader in the banking industry rather than a follower]]></category>
		<category><![CDATA[the amount stands as advance to the importer]]></category>
		<category><![CDATA[the analysis of demand]]></category>
		<category><![CDATA[the auditing firms too sometimes help the business concerns in providing false and fictitious statements. With few exceptions]]></category>
		<category><![CDATA[the bank conducts its operations in accordance with the major policy guidelines laid down by the Board of Directors]]></category>
		<category><![CDATA[the bank has to come to an acceptable compromise between over caution and under caution. BASIC bank was established to provide term loan and other financial assistance including all kinds of banking f]]></category>
		<category><![CDATA[the Bank is not nationalized; it operates like a private bank as before. BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles ]]></category>
		<category><![CDATA[the Bank is to provide full range of commercial banking services including collection of deposits]]></category>
		<category><![CDATA[the Bank operates like a private bank. The very name]]></category>
		<category><![CDATA[the bank purchases the same and pay equivalent amount of the bill to the credit of the client’s account. The advance is adjusted on realization of export proceeds through foreign agent. Interest rates]]></category>
		<category><![CDATA[the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfun]]></category>
		<category><![CDATA[the banker allows his customer to overdraft his current account up to his credit limits sanctioned by the bank. The interest is charged on the outstanding amount not on the sanctioned amount. OD is of]]></category>
		<category><![CDATA[the borrower can draw on his cash credit account at different time and when he gets money can adjust the liability. BASIC Bank charges interest on the daily outstanding balance of the account.Based on]]></category>
		<category><![CDATA[the branch issues the sanction letter to the borrower. A sanction letter contains the following particulars amongst other details: name of the borrower]]></category>
		<category><![CDATA[the company can fail to and this risk of failure is called management risk. It can be subdivided further- i. Management competence risk: Management competence risk is the risk that the company fails b]]></category>
		<category><![CDATA[the company is said to suffer from performance risk. It is a part of company position risk. Assessment of performance risk involves validating the company performance. It depends on competitive positi]]></category>
		<category><![CDATA[the deed duly certified by the managing partners of the firm should be submitted.  Title deed of land]]></category>
		<category><![CDATA[the degree of biasness should be reduced and more accurate assessing will be done.  For the purpose of realistic assessment of security risk the legal system in terms of realization of security shoul]]></category>
		<category><![CDATA[the following details:  Amount and type of loan(s) proposed  Purpose of loans  Loan structure ( Tenor]]></category>
		<category><![CDATA[the following risk areas are analyzed:  Borrower analysis  Industry analysis  Supplier/ Buyer analysis  Historical financial analysis  Projected financial performance  Account conduct  Adherenc]]></category>
		<category><![CDATA[the given objectives of the report can be accomplished. The percentage of nonperforming loan should be reduced and then can slowly divert towards cash flow based lending and also further improve the o]]></category>
		<category><![CDATA[the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However]]></category>
		<category><![CDATA[the highest policy making body. The management looks after the day-to-day operation of the Bank. Board of Directors: As stated earlier the Government holds 100 percent ownership of the Bank. The Gover]]></category>
		<category><![CDATA[the interest is charged at the rate of 15% per annum. Security/ Collateral: In all cases stocks/ equipment procured with the loan proceeds remain hypothecated with the Bank. The member borrowers sign ]]></category>
		<category><![CDATA[the law of the country does not make auditing compulsory for all the enterprises except the joint stock company. In such a situation analysis of lending risk on the basis of un-audited financial state]]></category>
		<category><![CDATA[the length of processing time becomes a significant factor. Compared to other financial institutions’ usual two months average processing time for its medium and large loan program]]></category>
		<category><![CDATA[the loan officer negotiates a plan of action with the borrower to save both the bank and the borrower from possible loss. This calls for certain sacrifices on the part of the bank and borrower in thei]]></category>
		<category><![CDATA[the loans are collateral free. D.P note and their relevant charge forms are signed by authorized executives of NGOs. 3. Commercial Credit: The types of commercial credits are given below. i. Overdraft]]></category>
		<category><![CDATA[the main component of lending risk]]></category>
		<category><![CDATA[the main purpose of the commercial bank is to make profit. The profitability of the banks depends on the efficient manner and avenues in which the resources are employed. The BASIC Bank Limited has ma]]></category>
		<category><![CDATA[the most important task of it is to disburse the said deposit as loan or advance to the mass people for the development of commercial]]></category>
		<category><![CDATA[the non-cooperation between different banks is a real difficulty. • Lack of experienced assessor: In most cases]]></category>
		<category><![CDATA[the processing/ approval time for small industry loans remains well below the above processing time because of its lesser detailed studies as well as the bank considers that small entrepreneurs look f]]></category>
		<category><![CDATA[the resilience risk is generated. The resilience risk of a company depends on company’s leverage]]></category>
		<category><![CDATA[the result of LRA may be misleading. • Absence of discounting technique: Term loan is sanctioned for longer period of time for meeting the cost of assets of a capital nature for the establishment]]></category>
		<category><![CDATA[the topic “Credit Management” has been undertaken as my topic for internship report. This report will provide an insight of credit risk management issues of BASIC Bank. This report consists of an intr]]></category>
		<category><![CDATA[the value of security actually realized is less than what a bank estimates. Sometimes]]></category>
		<category><![CDATA[then we have to assess the risk that changes to regulations will damage sales and then we have to assess the risk that a single large customer switches to a competitor and finally we will assess the r]]></category>
		<category><![CDATA[then “2nd Reminder” and “3rd Reminder” IS issued Negotiation If the persuasion failed]]></category>
		<category><![CDATA[there are certain areas or criteria that can be improved for better and efficient functioning of the BASIC Bank. They are listed out as below:  BASIC Bank should more concern about credit risk manage]]></category>
		<category><![CDATA[there are two forms of cash credit.  Cash Credit (Hypothecation): Hypothecation is a legal transaction whereby goods are made available to the lending banker as security for a debt without transferri]]></category>
		<category><![CDATA[therefore]]></category>
		<category><![CDATA[they are ahead of others in terms of discipline and good management skills too. Their overall credit recovery rate is 70%.It is good than other government banks. But even then]]></category>
		<category><![CDATA[they are sanctioned at the Head Office which creates an unnecessary and extra pressure on the Overall financial position of the Bank SWOT analysis The SWOT analysis comprises of the organizations inte]]></category>
		<category><![CDATA[this is value today of the money received in future]]></category>
		<category><![CDATA[this type of risk would generate. Sales may be disrupted due to changes in market size]]></category>
		<category><![CDATA[title and ownership are not transferred. Pledge goods may be sold out and proceeds thereof may be appropriated towards adjustment of liability in case of failure of the borrower to repay or fulfill th]]></category>
		<category><![CDATA[to avoid further reference/ delay/ rejection of application  Information may be provided in additional sheets of papers]]></category>
		<category><![CDATA[to the Heads of Departments. Consequently]]></category>
		<category><![CDATA[together with non-encumbrance certificate from the district registrar or sub-registrar should be submitted.  Certificates from the surveyor for determining the price of land of the proposed project/ ]]></category>
		<category><![CDATA[total assets of the bank stood at Taka 78]]></category>
		<category><![CDATA[total demand and supply of different product of different industries]]></category>
		<category><![CDATA[Trade]]></category>
		<category><![CDATA[trend and dynamism of market. • Insufficient independence: Banks and financial institutions are not apart from any type of political influence or pressure group in respect of loans and advances. Besid]]></category>
		<category><![CDATA[when it is difficult to obtain required quality of raw materials and when there is a shortage of necessary skilled labor. ii. Sales risk: It is another component of industry risk. When the business fa]]></category>
		<category><![CDATA[wherever necessary]]></category>
		<category><![CDATA[which are necessary for assessing risk. • Inaccurate data: CRM calls for submission of financial statements by the borrowers. Most of the prospective borrowers are observed not to prepare financial st]]></category>
		<category><![CDATA[which are not refundable. The borrower will be required to deposit equity in advance (partial) with BASIC @ 20% of the total estimated paid-up capital of the proposed company. The deposit will carry i]]></category>
		<category><![CDATA[which arrives from external reasons of the business]]></category>
		<category><![CDATA[which comprises agricultural]]></category>
		<category><![CDATA[which is adjusted by delivery of documents against payment or by allowing post import finance such as LIM or LTR. xii. Foreign Bill Purchase (FBP): Post export credit allowed against export bills. If ]]></category>
		<category><![CDATA[which practically means nothing. It is given against registered mortgage of land and building]]></category>
		<category><![CDATA[which should have the ability to capture all key customer data]]></category>
		<category><![CDATA[who are playing in the same field and also used in the strategic analysis of the organization. Strengths:  100% Government owned bank  A reputation of good customer service  Diversified products an]]></category>
		<category><![CDATA[who goes out of business etc. It is difficult to obtain right quality of supplies]]></category>
		<category><![CDATA[willingness to repay and sources of repayment all together constitute step one in the risk control processes. In this chapter all the possible risks that are exposed while sanctioning loans are briefl]]></category>
		<category><![CDATA[within the estimated time and cost. However]]></category>
		<category><![CDATA[Work Orders etc  Temporary Overdraft (TOD): It is given to the valued customers only. It is not that much secured. Usually it forwards without any security or sometimes exercise lien against the inst]]></category>
		<category><![CDATA[“Executive Summary” and “Office Note” which contains a brief description of the loan proposal. Then he submits it to the Head Office Credit Committee (HOCC) for the approval of the loan. The Head Offi]]></category>

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		<description><![CDATA[<p>Executive summary The report is originated in result of my internship program which I have done as a requirement of BBA program .This report is completed based on my three months internship in Dhaka Bank Limited. This is an orientation report that contains the real life day to day working experience of different tasks in [...]</p><p>The post <a href="http://www.assignmentpoint.com/business/finance/different-tasks-in-credit-department-of-basic-bank-limited.html">Different Tasks in Credit Department of BASIC Bank Limited</a> appeared first on <a href="http://www.assignmentpoint.com">Assignment Point</a>.</p>]]></description>
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		<title>Plant Training on Aristopharma Ltd (Part 2)</title>
		<link>http://www.assignmentpoint.com/science/pharmacy/plant-training-on-aristopharma-ltd-part-2.html</link>
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		<pubDate>Tue, 18 Jun 2013 06:01:14 +0000</pubDate>
		<dc:creator>imam7</dc:creator>
				<category><![CDATA[Pharmacy]]></category>
		<category><![CDATA[Internship Report]]></category>

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		<description><![CDATA[<p>Liquid Preparation Liquid Dosage forms are homogeneous preparations containing one or more active ingredients dissolved or suspended in a suitable vehicle. The liquid section is very essential for any pharmaceutical company to become a good one. Aristopharma includes the following liquid preparations:- Oral Syrup Suspension Figure: Liquid dosage form General Manufacturing Process of Oral Liquid      [...]</p><p>The post <a href="http://www.assignmentpoint.com/science/pharmacy/plant-training-on-aristopharma-ltd-part-2.html">Plant Training on Aristopharma Ltd (Part 2)</a> appeared first on <a href="http://www.assignmentpoint.com">Assignment Point</a>.</p>]]></description>
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		<title>Plant Training on Aristopharma Ltd</title>
		<link>http://www.assignmentpoint.com/science/pharmacy/plant-training-on-aristopharma-ltd.html</link>
		<comments>http://www.assignmentpoint.com/science/pharmacy/plant-training-on-aristopharma-ltd.html#comments</comments>
		<pubDate>Tue, 18 Jun 2013 06:01:04 +0000</pubDate>
		<dc:creator>imam7</dc:creator>
				<category><![CDATA[Pharmacy]]></category>
		<category><![CDATA[Internship Report]]></category>

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		<description><![CDATA[<p>Introduction ARISTOPHARMA LTD. started through the formation of a proprietorship firm with the introduction of a few products in oral liquid &#38; tablet form in 1986. In 1990 new manufacturing unit was commissioned at Shampur-Kadamtali with highly sophisticated and advanced facilities. In 1998 Production line was diversified with the addition of cream and ointment in [...]</p><p>The post <a href="http://www.assignmentpoint.com/science/pharmacy/plant-training-on-aristopharma-ltd.html">Plant Training on Aristopharma Ltd</a> appeared first on <a href="http://www.assignmentpoint.com">Assignment Point</a>.</p>]]></description>
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