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Faculty Sections / Syndicated loan
« on: March 28, 2019, 01:52:48 AM »
Syndicated loan:
A  syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.
The syndicated loan market is the dominant way for corporations in the U.S. and Europe to receive loans from banks and other institutional financial capital providers. The U.S. market originated with the large leveraged buyout loans of the mid-1980s,[1]:23 and Europe's market blossomed with the launch of the euro in 1999.
At the most basic level, arrangers serve the investment-banking role of raising investor funding for an issuer in need of capital. The issuer pays the arranger a fee for this service, and this fee increases with the complexity and risk factors of the loan. As a result, the most profitable loans are those to leveraged borrowers—issuers whose credit ratings are speculative grade and who are paying spreads (premiums or margins above the relevant LIBOR in the U.S. and UK, Euribor in Europe or another base rate) sufficient to attract the interest of non-bank term loan investors. Though, this threshold moves up and down depending on market conditions.
In the U.S., corporate borrowers and private equity sponsors fairly even-handedly drive debt issuance. Europe, however, has far less corporate activity and its issuance is dominated by private equity sponsors, who, in turn, determine many of the standards and practices of loan syndication.
Benefits of syndicated loan:
 Since syndicated loans can spread out among many lenders, there’s a good chance of networking and creating brand new banking contacts. One lender doesn’t need to do it all, so their efforts are spread out across the board. This allows them to take on more loans and at the same time, limit their exposure and risk. The borrower has the ability to spread out to several institutions and increase their visibility within the syndicated loan market.
Much of the weight is taken off the lenders’ shoulders with syndicated lending. Only one of the lenders involved in the transaction becomes the “key agent,” granting them administrative abilities and streamlining the process for other loan participants. Borrowers can actually save costs by raising funds in a syndicated loan market as opposed to borrowing money through a series of loans. The cost savings largely boil down to the borrower signing a contract with a group of lenders versus signing contracts with several individual lenders. Doing so not only saves money, but time as well.
Borrowers ave extra leeway with syndicated loans. The loan pricing and structure can be incredibly flexible. Borrowers are granted more options in shaping their loan, including multicurrency options, risk management techniques, and no-penalty prepayment rights. Loan terms can also be abbreviated. Not only can syndicated loans provide flexibility and comfort to the process, but signing on to a syndicated loan can put you in front of the market and expose you to new contacts and more competition for your business. This exposure can bring you incredible opportunities that would not be available otherwise.
Loan market overview
The retail market for a syndicated loan consists of banks and in the case of leveraged transactions, finance companies and institutional investors.[2] The balance of power among these different investor groups is different in the U.S. than in Europe. The U.S. has a capital market where pricing is linked to credit quality and institutional investor appetite. In Europe, although institutional investors have increased their market presence over the past decade, banks remain a key part of the market. Consequently, pricing is not fully driven by capital market forces.
In the U.S., market flex language drives initial pricing levels. Before formally launching a loan to these retail accounts, arrangers will often get a market read by informally polling select investors to gauge their appetite for the credit. After this market read, the arrangers will launch the deal at a spread and fee that it thinks will clear the market. Once the pricing, or the initial spread over a base rate (usually LIBOR), was set, it was largely fixed, except in the most extreme cases. If the loans were undersubscribed, the arrangers could very well be left above their desired hold level. Since the 1998 Russian financial crisis roiled the market, however, arrangers have adopted market-flex contractual language, which allows them to change the pricing of the loan based on investor demand—in some cases within a predetermined range—and to shift amounts between various tranches of a loan. This is now a standard feature of syndicated loan commitment letters.
As a result of market flex, loan syndication functions as a book-building exercise, in bond-market parlance. A loan is originally launched to market at a target spread or, as was increasingly common by 2008 with a range of spreads referred to as price talk (i.e., a target spread of, say, LIBOR+250 to LIBOR+275). Investors then will make commitments that in many cases are tiered by the spread. For example, an account may put in for $25 million at LIBOR+275 or $15 million at LIBOR+250. At the end of the process, the arranger will total up the commitments and then make a call on where to price the paper. Following the example above, if the paper is vastly oversubscribed at LIBOR+250, the arranger may slice the spread further. Conversely, if it is undersubscribed even at LIBOR+275, then the arranger will be forced to raise the spread to bring more money to the table.
In Europe, banks have historically dominated the debt markets because of the intrinsically regional nature of the arena. Regional banks have traditionally funded local and regional enterprises because they are familiar with regional issuers and can fund the local currency. Since the Eurozone was formed in 1998, the growth of the European leveraged loan market has been fuelled by the efficiency provided by this single currency as well as an overall growth in merger & acquisition (M&A) activity, particularly leveraged buyouts due to private equity activity. Regional barriers (and sensitivities toward consolidation across borders) have fallen, economies have grown and the euro has helped to bridge currency gaps.
As a result, in Europe, more and more leveraged buyouts have occurred over the past decade and, more significantly, they have grown in size as arrangers have been able to raise bigger pools of capital to support larger, multi-national transactions. To fuel this growing market, a broader array of banks from multiple regions now fund these deals, along with European institutional investors and U.S. institutional investors, resulting in the creation of a loan market that crosses the Atlantic.
The European market has taken advantage of many of the lessons from the U.S. market, while maintaining its regional diversity. In Europe, the regional diversity allows banks to maintain a significant lending influence and fosters private equity’s dominance in the market.
Mechanism of Syndicated loan:
Leveraged transactions fund a number of purposes. They provide support for general corporate purposes, including capital expenditures, working capital, and expansion. They refinance the existing capital structure or support a full recapitalization including, not infrequently, the payment of a dividend to the equity holders. They provide funding to corporations undergoing restructurings, including bankruptcy, in the form of super senior loans also known as debtor in possession (DIP) loans. Their primary purpose, however, is to fund M&A activity, specifically leveraged buyouts, where the buyer uses the debt markets to acquire the acquisition target’s equity.
In the U.S., the core of leveraged lending comes from buyouts resulting from corporate activity, while, in Europe, private equity funds drive buyouts. In the U.S., all private equity related activities, including refinancings and recapitalizations, are called sponsored transactions; in Europe, they are referred to as LBOs.
A buyout transaction originates well before lenders see the transaction’s terms. In a buyout, the company is first put up for auction. With sponsored transactions, a company that is for the first time up for sale to private equity sponsors is a primary LBO; a secondary LBO is one that is going from one sponsor to another sponsor, and a tertiary is one that is going for the second time from sponsor to sponsor. A public-to-private transaction (P2P) occurs when a company is going from the public domain to a private equity sponsor.
As prospective acquirers are evaluating target companies, they are also lining up debt financing. A staple financing package may be on offer as part of the sale process. By the time the auction winner is announced, that acquirer usually has funds linked up via a financing package funded by its designated arranger, or, in Europe, mandated lead arranger (MLA).
Before awarding a mandate, an issuer might solicit bids from arrangers. The banks will outline their syndication strategy and qualifications, as well as their view on the way the loan will price in market. Once the mandate is awarded, the syndication process starts.
In Europe, where mezzanine capital funding is a market standard, issuers may choose to pursue a dual track approach to syndication whereby the MLAs handle the senior debt and a specialist mezzanine fund oversees placement of the subordinated mezzanine position.
The arranger will prepare an information memo (IM) describing the terms of the transactions. The IM typically will include an executive summary, investment considerations, a list of terms and conditions, an industry overview, and a financial model. Because loans are unregistered securities, this will be a confidential offering made only to qualified banks and accredited investors. If the issuer is speculative grade and seeking capital from nonbank investors, the arranger will often prepare a “public” version of the IM. This version will be stripped of all confidential material such as management financial projections so that it can be viewed by accounts that operate on the public side of the wall or that want to preserve their ability to buy bonds or stock or other public securities of the particular issuer (see the Public Versus Private section below). Naturally, investors that view materially nonpublic information of a company are disqualified from buying the company’s public securities for some period of time. As the IM (or “bank book,” in traditional market lingo) is being prepared, the syndicate desk will solicit informal feedback from potential investors on what their appetite for the deal will be and at what price they are willing to invest. Once this intelligence has been gathered, the agent will formally market the deal to potential investors.
The executive summary will include a description of the issuer, an overview of the transaction and rationale, sources and uses, and key statistics on the financials. Investment considerations will be, basically, management’s sales “pitch” for the deal.
The list of terms and conditions will be a preliminary term sheet describing the pricing, structure, collateral, covenants, and other terms of the credit (covenants are usually negotiated in detail after the arranger receives investor feedback).
The industry overview will be a description of the company’s industry and competitive position relative to its industry peers.
The financial model will be a detailed model of the issuer’s historical, pro forma, and projected financials including management’s high, low, and base case for the issuer.
Most new acquisition-related loans are kicked off at a bank meeting at which potential lenders hear management and the sponsor group (if there is one) describe what the terms of the loan are and what transaction it backs. Management will provide its vision for the transaction and, most importantly, tell why and how the lenders will be repaid on or ahead of schedule. In addition, investors will be briefed regarding the multiple exit strategies, including second ways out via asset sales. (If it is a small deal or a refinancing instead of a formal meeting, there may be a series of calls or one-on-one meetings with potential investors.)
In Europe, the syndication process has multiple steps reflecting the complexities of selling down through regional banks and investors. The roles of each of the players in each of the phases are based on their relationships in the market and access to paper. On the arrangers’ side, the players are determined by how well they can access capital in the market and bring in lenders. On the lenders’ side, it is about getting access to as many deals as possible.
There are three primary phases of syndication in Europe. During the underwriting phase, the sponsor or corporate borrowers designate the MLA (or the group of MLAs) and the deal is initially underwritten. During the sub-underwriting phases, other arrangers are brought into the deal. In general syndication, the transaction is opened up to the institutional investor market, along with other banks that are interested in participating.
In the U.S. and in Europe, once the loan is closed, the final terms are then documented in detailed credit and security agreements. Subsequently, liens are perfected and collateral is attached.
Loans, by their nature, are flexible documents that can be revised and amended from time to time after they have closed. These amendments require different levels of approval. Amendments can range from something as simple as a covenant waiver to something as complex as a change in the collateral package or allowing the issuer to stretch out its payments or make an acquisition.
Loan market participants
There are three primary-investor constituencies: banks, finance companies, and institutional investors; in Europe, only the banks and institutional investors are active.
In Europe, the banking segment is almost exclusively made up of commercial banks, while in the U.S. it is much more diverse and can involve commercial and investments banks, business development corporations or finance companies, and institutional investors such as asset managers, insurance companies and loan mutual funds and loan ETFs. As in Europe, commercial banks in the U.S. provide the vast majority of investment-grade loans. These are typically large revolving credits that back commercial paper or are used for general corporate purposes or, in some cases, acquisitions.
For leveraged loans, considered non-investment grade risk, U.S. and European banks typically provide the revolving credits, letters of credit (L/Cs), and—although they are becoming increasingly less common—fully amortizing term loans known as "Term Loan A" under a syndicated loan agreement while institutions provide the partially amortizing term loans known a "Term Loan B".
Finance companies have consistently represented less than 10% of the leveraged loan market, and tend to play in smaller deals—$25–200 million. These investors often seek asset-based loans that carry wide spreads and that often feature time-intensive collateral monitoring.
Institutional investors in the loan market are principally structured vehicles known as collateralized loan obligations (CLO) and loan participation mutual funds (known as “prime funds” because they were originally pitched to investors as a money-market-like fund that would approximate the prime rate) also play a large role. Although U.S. prime funds do make allocations to the European loan market, there is no European version of prime funds because European regulatory bodies, such as the Financial Services Authority (FSA) in the U.K., have not approved loans for retail investors.
In addition, hedge funds, high-yield bond funds, pension funds, insurance companies, and other proprietary investors do participate opportunistically in loans. Typically, however, they invest principally in wide-margin loans (referred to by some players as “high-octane” loans), with spreads of 500 basis points or higher over the base rate.
CLOs are special-purpose vehicles set up to hold and manage pools of leveraged loans. The special-purpose vehicle is financed with several tranches of debt (typically a ‘AAA’ rated tranche, a ‘AA’ tranche, a ‘BBB’ tranche, and a mezzanine tranche with a non-investment grade rating) that have rights to the collateral and payment stream in descending order. In addition, there is an equity tranche, but the equity tranche is usually not rated. CLOs are created as arbitrage vehicles that generate equity returns through leverage, by issuing debt 10 to 11 times their equity contribution. There are also market-value CLOs that are less leveraged—typically three to five times—and allow managers more flexibility than more tightly structured arbitrage deals. CLOs are usually rated by two of the three major ratings agencies and impose a series of covenant tests on collateral managers, including minimum rating, industry diversification, and maximum default basket.
In U.S., before the financial crisis in 2007-2008, CLOs had become the dominant form of institutional investment in the leveraged loan market taking a commanding 60% of primary activity by institutional investors by 2007. But when the structured finance market cratered in late 2007, CLO issuance tumbled and by mid-2008, the CLO share had fallen to 40%. In 2014 CLO issuance has demonstrated a full recovery with issuance of $90 billion by August, an amount that effectively equals the previous record set in 2007. Projections on total issuance for 2014 are as high as $125 billion.
In Europe, over the past few years, other vehicles such as credit funds have begun to appear on the market. Credit funds are open-ended pools of debt investments. Unlike CLOs, however, they are not subject to ratings oversight or restrictions regarding industry or ratings diversification. They are generally lightly levered (two or three times), allow managers significant freedom in picking and choosing investments, and are subject to being marked to market.
In addition, in Europe, mezzanine funds play a significant role in the loan market. Mezzanine funds are also investment pools, which traditionally focused on the mezzanine market only. However, when second lien entered the market, it eroded the mezzanine market; consequently, mezzanine funds expanded their investment universe and began to commit to second lien as well as payment-in-kind (PIK) portions of transaction. As with credit funds, these pools are not subject to ratings oversight or diversification requirements, and allow managers significant freedom in picking and choosing investments. Mezzanine funds are, however, riskier than credit funds in that they carry both debt and equity characteristics.
Retail investors can access the loan market through prime funds. Prime funds were first introduced in the late 1980s. Most of the original prime funds were continuously offered funds with quarterly tender periods. Managers then rolled true closed-end, exchange-traded funds in the early 1990s. It was not until the early 2000s that fund complexes introduced open-ended funds that were redeemable each day. While quarterly redemption funds and closed-end funds remained the standard because the secondary loan market does not offer the rich liquidity that is supportive of open-end funds, the open-end funds had sufficiently raised their profile that by mid-2008 they accounted for 15-20% of the loan assets held by mutual funds.
As the ranks of institutional investors have grown over the years, the loan markets have changed to support their growth. Institutional term loans have become commonplace in a credit structure. Secondary trading is a routine activity and mark-to-market pricing as well as leveraged loan indexes have become portfolio management standards.

Faculty Sections / Management Information System
« on: March 28, 2019, 01:50:01 AM »
What is MIS:
Management Information Systems (MIS) is the study of people, technology, and organizations.
Jobs MIS graduates go into:
As you can probably already tell, MIS is an integrative field. MIS professionals are the "communication bridge" between business needs and technology. This means that you will have to understand how to figure out how things work, solve problems, find things out, communicate what you found, and learn a lot of new things on a regular basis. It's a dynamic field, and it takes dynamic people to do well in it. People who can think fast, work hard, and balance a lot of things should really think about MIS. Here's only a sample of the kinds of MIS jobs.

• Business Analyst
• Business Application Developer
• IT Consultant
• Systems Analyst
• IT Development Project Leader
• Database Administrator
• Business Intelligence Analyst   
• Systems Developer
• Database Analyst
• Web Developer
• Network Administrator
• Technical Support Specialist
• Information Systems Manager
• IT User Liaison
MIS job sectors in the field of accounting:
1.   Data analyst
2.   Business analyst
3.   Cost accounting analyst
4.   Accounting system analyst
MIS job sectors in the field of finance:
1.   Financial analyst
2.   Operations associates
3.   Fraud analyst
4.   Financial business analysts

Cause of Information System skills requirement:
1.   Information systems play an important role in corporate world.
2.    Developing better It helps companies to improve their productivity, efficiency and customer service.
3.    Networked information systems enable companies to share knowledge and data throughout the organization, giving managers, executives, project teams and key employees access to the information they need to make decisions or manage operations.
4.    To increase employability information technology related skill is a must.
Type of Information System skills  are needed:
1.   Strong  knowledge in Social Media Marketing.
2.   Proficiency  with Microsoft Office, specifically in Excel at an intermediate level.
3.   adherence to global IT policies, guidelines, and procedures for the job offering of a Release Manger.
4.   basic knowledge of Microsoft Office, as well as a high level of initiative in keeping current with technological change.
5.    having experience using Human Resource software (HRIS) and Applicant Tracking System (ATS).  They also mention that they prefer Kronos System’s software.
What  should  I do to improve my Technical skills
1.   I can enroll in technical classes, workshops and seminars –There are numerous training sessions, seminars and workshops that offer a platform for learning about a specific technology or product. The biggest advantage of learning in a classroom-like setting is that you will gain from the knowledge of an experienced instructor and still learn from other students through their questions and contributions.
2.   I also can subscribe to technical Sites & magazines: There are numerous technical blogs, websites and magazines I can subscribe to. They offer an inexpensive way of keeping up with the latest technical advancements and trends. They can help me to improve my technical knowledge, skills, insights  into innovation and also provide you with tips on how to manage complex software applications. Examples of Technical Sites are: Tech crunch, CNET,  Mashable, and  Engadget, to mention a few.
3.   I can read technical books & take online tutorials. Bookstores typically have a section for hardware, software, programming languages and other technical topics. Also, I can search online for free tutorials and primers on a specific topic. Most tutorials are very easily accessed, up-to-date, and are available for free.
4.   I can learn multiple software applications. The more experienced I am with existing applications, the easier it will become to learn new ones in the future. Eventually, it will become extremely easy to figure out the technicalities of different applications and the "typical" features of a standard software application.
5.   I also can volunteer on Technical Projects. I can seek out opportunities in my community to volunteer on technical projects; this will allow me to gain valuable experience from working with the technical members of the team. Volunteering gives excellent access to projects that might ordinarily not be available to you in the corporate world. Volunteers can participate in monthly meetings, meet with clients, and become valued members of the project.

Faculty Sections / History of Auditing Profession in Bangladesh
« on: March 28, 2019, 01:47:01 AM »
Before starting on the history of auditing, we must have a clear and concise idea on what Auditing actually is.
What is Auditing?
Financial auditing is the process of examining an organization's (or individual's) financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws.
 The word “audit” comes from the Latin word audire, meaning “to hear” “to listen”. According to Flint (1988),audit is a social phenomenon which serves no purpose or value except of its practical usefulness and its existence is whollyutilitarian.
The individual who does the work of auditing is called auditor.
External auditors come in from outside the organization to examine accounting and financial records and provide an independent opinion on these records. Law requires that all public companies have their financial statements externally audited.
Internal auditors work for the organization as internal employees to examine records and help improve internal processes such as operations, internal controls, risk management, and governance.

OPC and Small Company – Same Auditor can be re-appointed every five years.
 Listed Companies and Companies other than OPC and Small Company –
 i. Individual – One term of 5 consecutive years. Can be re-appointed after cooling off period of 5 years
ii. Firm of Auditors – Two terms of 5 consecutive years. Can be re-appointed after cooling off period of 5 years
 • In case of companies which have constituted audit committee, audit committee to recommend appointment of auditor to board, in other cases, Board to consider on their own.
 • If Board is satisfied with recommendation of audit committee, it shall consider and recommend the same to members in general meeting.
 • If Board is not satisfied, it will send back to audit committee for reconsideration along with Board’s reasons.
 • If audit committee does not reconsider, then Board will make its own recommendation to the Members and record the reason for rejection of recommendation of audit committee in Board’s report.
• Audit Committee/Board to consider following factors before appointment:
 - Qualifications and experience of the person
 - Size and requirements of the company
- Completed and pending proceedings against the auditor before the ICAI or the NFRA or Tribunal or any Court of law
 • On recommendation of Board, members to appoint an individual or firm as auditor for five years subject to ratification by members in every AGM.
 • Company to intimate auditor regarding his appointment and also to ROC within 15 days of meeting.
 • Consent letter to act as auditor
 • Certificate confirming following particulars:
 - He or it is eligible for appointment and is not disqualified for appointment under the Act, the Chartered Accountants Act, 1949 and Rules and Regulations made therein.
 - The proposed appointment is within the term allowed under the Act.
 - The proposed appointment is within the limit laid down in the Act
 • Members can provide for following by passing a resolution:
 (a) In the audit firm appointed by it, the auditing partner and his team shall be rotated at such intervals as may be resolved by members; or
 (b) The audit shall be conducted by more than one auditor.
 • Rotation on expiry of term: Same procedure as appointment.
 • For the purpose of rotation, the period for which the auditor is holding office prior to the commencement of this act will also be counted in calculating the period of 5 years or 10 years as the case may be.
 • Where a company has appointed two or more persons as joint auditors, the company shall follow the rotation of auditors in such a manner that all of the joint auditors do not complete their term in the same year.
 • An individual or partner of an audit firm cannot be appointed as an auditor in more than twenty companies.
 • Subject to the maximum tenure of appointment, a retiring auditor can be re-appointed if—
 - He is not disqualified for re-appointment;
 - He has not given the company a notice in writing of his unwillingness to be reappointed
- A special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed.
 • Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company.
 • Special Resolution to be passed by company for removal of auditor.
 • Application to be filed with Central Government in form no. 10.1 within 30 days of passing special resolution.
 • The application shall be accompanied by such fees as specified.
 • The auditor concerned shall be given a reasonable opportunity of being heard.
 • Auditor to file statement in form 10.2 within 30 days of resignation giving reasons and other facts for resignation.
 • Statement to be filed with ROC and Company.
 • If the auditor does not comply with above provisions, he or it shall be punishable with fine which shall not be less than MRP. 50,000/- but which may extend to MRP. 5,00,000/-.
 • Special notice required for appointment of auditor other than retiring auditor except in case where term has got over.
 • On receipt of special notice, company to send notice to retiring auditor.
 • Retiring auditor can make representation which needs to be circulated to members.
• Only a Chartered Accountant or a firm where majority of partners practising in India are Chartered Accountants can be appointed as auditor.
 • Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm.
 • The following persons shall not be eligible for appointment as an auditor of a company, namely:
 • A body corporate, except LLP.
 • An officer or employee of the company;
• Any partner/employee of officer or employee of company
 • A person who himself or his partner is holding security or interest in a company, or any company which is its holding, subsidiary, associate or fellow subsidiary.
 • A person whose relative is holding security or interest not exceeding MRP. One Lakh face value in companies as mentioned above.
 • A person who himself or his relative or partner is indebted, or has given guarantee for indebtedness of any third party to the company, its subsidiary, holding, fellow subsidiary or associate company in excess of tk one lakh.
 • A person or a firm who, whether directly or indirectly, has “business relationship” with the company, or its subsidiary, or its holding or associate company or fellow subsidiary. “Business relationship” shall construe any transaction entered into for a commercial purpose except those which are in the nature of professional services as permitted to be rendered by an auditor or audit firm under the Act and the Chartered Accountants Act and the rules and the regulations made under such Act.
 • A person whose relative is a director or is in the employment of the company as a director or key managerial personnel
 • A person who is in full time employment elsewhere
 • Person who is auditor of more than 20 companies.
 • A person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction.
 • Any person whose subsidiary or associate company or any other form of entity, is engaged as on the date of appointment in consulting and specialised services as provided in section 144.
Auditor not to render following services to company, holding company or subsidiary company, directly or indirectly:
(a) accounting and book keeping services;
(b) internal audit;
(c) design and implementation of any financial information system;
(d) actuarial services;
(e) investment advisory services;
(f) investment banking services;
(g) rendering of outsourced financial services;
(h) management services; and
(i) any other kind of services as may be prescribed
There are two main objectives of auditing. The primary objective and the secondary or incidental objective.
 a. Primary objective – as per Section 227 of the Companies Act 1956, the primary duty (objective) of the auditor is to report to the owners whether the balance sheet gives a true and fair view of the Company’s state of affairs and the profit and loss A/c gives a correct figure of profit of loss for the financial year.
 b. Secondary objective – it is also called the incidental objective as it is incidental to the satisfaction of the main objective. The incidental objective of auditing are:
i. Detection and prevention of Frauds, and
ii. Detection and prevention of Errors.
Detection of material frauds and errors as an incidental objective of independent financial auditing flows from the main objective of determining whether or not the financial statements give a true and fair view. As the Statement on auditing Practices issued by the Institute of Chartered Accountants of India states, an auditor should bear in mind the possibility of the existence of frauds or errors in the accounts under audit since they may cause the financial position to be mis-stated.

Tax Lawyer
Tax attorneys are lawyers who specialize in the complex and technical field of tax law. They’re best for handling complex, technical and legal issues associated with your tax situation.
Companies Act
Companies Acts may be a generic name either for legislation bearing that short title or for all legislation which relates to company law.
Companies Act, 2013 has introduced a number of changes relating to audit and auditors. Most of these are welcome measures aimed at better corporate governance and shareholder democracy. The rules relating to this topic have also been published for public comments. Initial hitches at the time of transition from the existing Act to the new Act are expected which hopefully will be settled with passage of time and clarifications brought out by the Ministry. The draft Rules are open to public comments till 8th of October 2013. Readers are encouraged to understand the provisions and post their comments to the Ministry.

Section 181 of Companies Act 1913:
SECTION 181: Provision for legal assistance to official liquidator:
The official liquidator may, with the sanction of the Court, appoint an advocate attorney or pleader entitled to appear before the Court to assist him in the performance of his duties :
Provided that, where the official liquidator is an attorney, he shall not appoint his partner, unless the latter consents to act without remuneration.

Section 181 of the Companies Act,1913 required that every company should cause to be kept proper books of account with respect to:
(a)   all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
(b)   all sales and purchases of the goods by the company;
(c)   the assets and liabilities of the company
(d)   in case of a company pertaining to any class of companies engaged in production, marketing, transportation , processing, manufacturing, milling, extracting and mining activities, such particulars relating to utilization of material, labor and other items of overhead cost.

Origin of  Auditing
Contribution of Luca De Pacioli
Fra Luca Bartolomeo de Pacioli (sometimes Paccioli or Paciolo; c. 1447–1517) was an Italian mathematician, Franciscan friar, collaborator with Leonardo da Vinci, and a seminal contributor to the field now known as accounting. He is referred to as “The Father of Accounting and Bookkeeping” in Europe and he was the first person to publish a work on the double-entry system of book-keeping in that continent. In his act „Summa“ the mathematician has written a summary of the mathematical methods of his times. In the famous Tractatus XI with the title „Particularis de computis et scripturis“ Pacioli describes the rules of bookkeeping as they were applied at that time by the northern Italian trading houses.
According to Pacioli the accounting was „in balance“, if the sum of the principal as well as the believer side separately added would give the same (positive) amount. Were the amounts of the believer side considered as negative values, then the accounting was “in balance”, if the sum of all principal and believer values resulted in a total of zero. In Pacioli’s work already is apparent, how profits and losses emerge from not furthermore explainable changes in value.

Barter System

Bartering is the process of trading services or goods between two parties without using money in the transaction. When people barter, everyone benefits because they receive items or services they need or want. Bartering also has an advantage because even people without money can get something they need. Bartering might involve trading a service for an item. For example, you could agree to perform yard work for someone in exchange for a bushel of apples from a tree in their yard. When people choose to barter to meet a need, they can save their money for other needs.

 Mesopotamia tribes were likely the starting point of the bartering system back in 6000 BC. Phoenicians saw the process, and they adopted it in their society. These ancient people utilized the bartering system to get the food, weapons, and spices they needed. Because of salt’s great value, Roman soldiers bartered their services for the empire in exchange for salt. In Colonial America, the colonists used bartering to get the goods and services they needed. Even after the invention of money, people continued to barter.
The simplicity of bartering is one of the main advantages of this system. Issues with international trade, foreign exchange, and unbalanced economic power are virtually nonexistent with a bartering system. However, some disadvantages also exist. For a bartering transaction to occur, both parties’ wants or needs must coincide to lead them to make a deal. Without a standard measure of value of goods and services, parties in the bartering transaction will need to spend time agreeing on the terms of the deal. It’s common for both parties to place a higher value on their own goods or services and a lower value on the other party’s items. Trust is also a component of bartering, because the representation of the goods or services offered must be accurate. If something is misrepresented in a transaction, the other party will have little recourse when a problem ensues. When bartering, people may need to store their accumulated possessions to preserve their purchasing power. Depending on the types of items, this might be difficult and inconvenient.
Because bartering does not involve the exchange of money for goods and services, it might seem like an ideal way to avoid paying taxes on transactions. However, the U.S. Internal Revenue Service informs taxpayers that the fair market value of goods or services received via bartering is considered taxable income. Parties who engage in bartering transactions must report this value as income on tax returns. The IRS requires reporting of bartering for the year it occurs. Failure to report bartering activity could lead to tax penalties.
Before 1840’s
The activities of the auditors can be summarized in this period as follows:
(1) There was no structured business and as such no formal internal control was established
(2) Lee and Azham (2008) observed that the auditing at the time was restricted to performing detailed verification of every transaction. Thus, the concept of testing or sampling was not part of the auditing procedure.
(3) Fitzpatrick (1939) opined that the audit objective in the early period was primarily designed to verify the honesty of persons charged with fiscal responsibilities.
(4) The sole duty of auditors was to detect fraud. He was seen as a bloodhound and not a watchdog.
Important years in history of auditing:

 The first ever Companies Act in India legislated.

 Law relating to maintenance of accounts and audit thereof introduced. Formalqualification as auditor now required.

 New Companies Act enacted. Books of accounts to be maintained specified. Formal qualification to act as auditor named. A Certificate from the local government to be held in order to act as auditor. An unrestricted Certificate entitled a person to act as auditorthroughout British India. A restricted Certificate entitled him to act as auditor only within the province concerned and in the languages specified in the certificate.

 Government Diploma in Accounting GDA launched in BomBay. On completion of article ship of three years under an approved accountant and  passing the qualifying examination the candidate would become eligible for the grant of an unrestricted Certificate.

 The issue of restricted Certificates discontinued.

 society of Auditors founded in madras.

 Registerof Accountants to be maintained by the government of India to exercise control over the members in practice. Those whose names found entry here were called registered Accountants.

 The governor general in Council replaced the local government as the statutory authority to grant certificates to persons entitling them to act as auditors. Auditors allowed to practice throughout India.

First Accountancy Board formed. The Board was to advise the governor general in Council on matters relating to accountancy and to assist him in maintaining standards of qualification and conduct required of auditors.

 First examination held by the Indian Accountancy Board. GDAs exempted from taking the test.

 The first Final examination was held. GDAs exempted from taking the test.

 Government Diploma in Accounting (GDA) abolished.

Evolution of Auditing
1.1850 – 1882:  The Office of the Comptroller and Auditor General has its beginnings in 1858 – the year the British Crown took over the reins of governing British India from the East India Company. The first Auditor General (Sir Edward Drummond) was appointed in 1860 and had both accounting and auditing functions. Departments of Accounts and Audit were created (reorganized) in 1862. In Indo-Pak subcontinent there were a few British firms of accountants, but they were so busy that their services were not available to the general public. The public companies used to appoint a European Auditor   for safeguarding the interests of the Indian shareholders.

2. 1882- 1913: In this phase the Companies Act of 1882 was passed. Regulations 83-94 of Table ‘A’ was in the first Schedule to the said Act provided for the audit of accounts of the companies adopting that Table and for the appointment, remuneration and duties of the auditors. Some companies in fact used to employ lawyers as their auditors.

3. 1913-1932: The Companies Act, 1913, was passed to be effective as from 1914. No person could act as the Auditor of a public limited company unless he held an auditor’s certificate granted by Government. The Provincial Governments were empowered to grant Auditors’ Certificate but, at the same time the Central government also reserved the right to recognize members of certain professional bodies as qualified to function in the capacity of company auditors without obtaining Auditors’ Certificate from the Government. Consequently the members of English, Scottish and Irish Institutes of Chartered Accountants and of the English Society of Incorporated Accountants and Auditors were recognized as qualified auditors.   

Thus the broad outlines the maintenance of books of accounts was made mandatory under the Company law.

For some years after 1913 the Provincial Government used to grant Auditors’ Certificate to persons who possessed some knowledge of accountancy. At that time there was no provision of any kind of training and examination of the accountancy .In 1918, Provincial Government of Bombay instituted the Government Diploma in Accountancy (Called GDA) and made regulations for the examination and training of those who wanted to obtain that Diploma and certificate to practice.
The action taken by the said government received the approval of other provincial and central Governments. The result was that GDA Diploma becomes the requisite qualification for the grant of Auditors’ Certificate throughout the then British India. An Accountancy Board was set up by the Government and was attached to the Sydenham College of Commerce and Economics, Bombay. This functioned till 1932
4. 1932-1947: Till 1932 there was no centralized control over the profession of accountancy, but the necessity for such control was increasingly being felt because of changing requirements of the time and growing needs of the economy. Consequently the Government framed Rules under Section 144, of the Companies Act ,1913, called “Auditors Certificate Rules’ 1932”. The objectives of these rules were broadly as follows:
•   Registering apprenticeships;
•   Conducting examinations;
•   Controlling and regulating the profession of auditing.

The Accountancy Profession was then being supervised and controlled by the Ministry of Commerce of the Central Government. With a view to helping the Government, Indian Accountancy Board was established. The board was only an advisory body . The Auditors Certificate Rules 1932, required the passing of two examinations – Registered Accountants first and final. It further laid down the tenure of prescribed training which was required to be completed during the period of apprenticeship. 

5. 1947- Dec. 15, 1971: Pakistan expressed as an independent state on August 15, 1947 and adapted the Auditors’ Certificate Rules, 1932. Amendments were made in 1950 and the affairs of the accounting profession were then administered under the Auditors’ Certificate Rules, 1950. A person who passed the Registered Accountants first and final examination and who satisfied the Ministry of Commerce, Central Government of Pakistan that he had completed the prescribed practical training could have his name placed on the registered maintained by the said Ministry and was entitled to use the designation ‘Registered Accountant’ (RA).
In 1952, the Registered Accountants formed a private body known as “ Pakistan Institute of Accountants” with the objects of looking after their own interest and taking up with Ministry of Commerce, Government of Pakistan, matters affecting the accountancy profession. The Government realized that the profession was rapidly growing in its stature and importance and in June 1959, the Department of Accountancy was established in the Ministry of Commerce with a Controller of Accountancy to deal with the professional instead of a Section Officer. 
The Chartered Accountants Ordinance, 1961 received the assent of the President of Pakistan on March 3, 1961, and was published in Part I of the Extraordinary Gazette of Pakistan on March 10 1961. The Institute of Chartered Accountants of Pakistan came into being on July 1, 1961. A draft of the Chartered Accountants Bye-Laws was also prepared and published for inviting public comments. The amended version called Chartered Accountants Bye-Laws –1961, was published on the part I of the Extraordinary Gazette of Pakistan on July 1, 1961 and was enforced as on that date. As of that date the Department of Accountancy and the Pakistan institute of Accountants having served a very useful purpose were liquidated.

6. December 16, 1971 Onward: Through the war of liberation, the then East Pakistan emerged as an Independent country- Bangladesh on 16 December, 1971. A Council was constructed by the Government of Bangladesh under notification No, SEC-XII/9M-132/72/ 318 (50) dated the 27th March 1972, issued by the ministry of commerce after the 16th day of December 1971. The profession of Chartered Accountants is governed by the following:
•   The Bangladesh Chartered Accountants Order, 1973
•   The Bangladesh Chartered Accountants Bye-Laws-1973
•   Forms of Application, Certificates, Agreements etc.
•   Directives of the council and the decisions of the institute.


The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body in Bangladesh, established under the Bangladesh Chartered Accountants Order, 1973 (President's Order No. 2 of 1973). for the purpose of regulating the profession of accountants and for matters connected therewith.

Administrative Ministry :
The Ministry of Commerce, Government of the People's Republic of Bangladesh is the Administrative Ministry of The Institute of Chartered Accountants of Bangladesh (ICAB).

Vision :
ICAB members hold a widely respected professional accounting qualification which supports enterprise, corporate governance and sustainable growth in the business environment.
Mission :
•   To promote and regulate high quality financial reporting and auditing in Bangladesh
•   To develop and maintain the competence of professional accountants  and
•   To enhance the reputation of the accounting profession in all sectors of the economy

•   Integrity                    To uphold the highest professional integrity and ethical standards
•   Expertise                   To conduct professional responsibilities with a high level of knowledge, competency and skill.
•   Transparency          To conduct activities in a clear and transparent way.
•   Accountability         ICAB members to be responsible for their actions.
Strategic Goals :
•   Increase number of members, students and financial strength
•   Align with members' careers
•   Enhance ICAB's image within the country and internationally
•   Further enhance the reputation for professionalism and high standards of integrity.
•   Ensure compliance with requirements of IFAC (International Federation of Accountants) membership.

Aims & Objectives:
To accomplish its mission, ICAB has been doing:
•   Regulate the Accountancy Profession and matters connected therewith
•   Administer its members and students
•   Ensure professional ethics and code of conduct
•   Provide specialized and professional training in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and related subjects.
•   Impart Continuing Professional Development (CPD) to members.
•   Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International tenders on Auditing /International, Auditing Practices Standards, (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively.
•   Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing /International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively
•   Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing /International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively
•   Keep abreast of the latest developments in Accounting techniques, Audit methodology, Information technology, Management consultancy and related fields and
•   Liaise with international and regional organizations to strengthen mutual cooperation.

 The Council-ICAB is the supreme authority responsible for the administration and management of the Institute in accordance with P.O. No. 2 of 1973 and ICAB Bye-Laws 2004. The Council is composed of twenty members elected by the members of the Institute from its two regional constituencies in Bangladesh for every three years. The President and the Vice-Presidents of the Institute are elected by the Council every calendar year to manage the affairs of the Institute. The President who is the Chief Executive of the Council heads the Council. The Council is assisted by various Standing and Other (Non-Standing) Committees and Boards. For the purpose of assisting the Council and the committees/Boards in matters concerning their functions, the Council is empowered to constitute Regional Committees, the members of which are elected by the general members of the respective constituencies. Currently there are two Regional Committees in Dhaka, Chittagong and Overseas Chapters: UK Chapter Management Committee, North American Chapter and Asia-Pacific Chapter. The day to day activities of the Institute is delegated to the Secretariat, headed by the Secretary as Administrative Head.

 The total number of Members of the Institute is 1583 as of 01 July 2016 of whom 1419 are residing in Bangladesh and 164 in abroad. There are 973 Fellows and 610 Associates enrolled with the Institute. Out of 1583 members, 366 are practicing as public accountants and the rest 1217 are either serving in various key positions in public and private organizations, both at home and abroad, and self employed running their own business. However, up to December 2016, total number of members is 1610 which includes 102 female members.
The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national body of the professional Cost and Management Accountants of Bangladesh. Established with the prime objective of promoting and regulating the Cost and Management Accounting profession in the country, the Institute offers education and training to the students interested to pursue career in this field and provides highly recognized CMA degree on fulfilment of requisite qualification. The Institute undertakes research in relevant fields and is the sole authority to issue practicing license to its members.

The Institute has a long heritage of rendering professional services to the nation. The journey of the glorious profession of Cost and Management Accounting began in the pre-independent Bangladesh with the founding of a branch of The Pakistan Institute of Industrial Accountants (PIIA) in 1958.
ICMAB is a statutory organization constituted by the Government under the Cost and Management Accountants Ordinance 1977 (Ordinance No Llll of 1977) and regulated under the Cost and Management Accountants Regulations 1980 (as amended up-to date). It is the member of a number of regional and global accounting bodies.

Financial Reporting Act 2015
 In order to monitor the ICAB and ICMAB, the Financial Reporting Council (FRC) of 12 members, a body formed under the act, would be formed to ensure accountability and performance among the chartered accountants and management accountants in Bangladesh. Moreover, the council will be a statutory body with expert members from various government bodies, institutions and professional groups.
All auditors and audit firms must register with the Financial Reporting Council. Without registration, no auditor and audit firm will be able to provide auditing services to any entity related with the public interest. For registration, the auditor or audit firm needs to apply to the FRC. The FRC will review the application and will provide the registration pursuant to the rules and guidelines. If any auditor or any audit firm violates any provision of the act or any of its rules and guidelines, the Financial Reporting Council may cancel or suspend the registration and may fine as well.

Institutes for Audit Profession
ACCA - Association of Chartered Certified Accountants

 ACCA is a globally recognised professional accountancy qualification. It is one of the fastest growing international accountancy organisations with 170,000 members and 436,000 students in 180 countries. ACCA qualification has been designed to enhance your skills and knowledge and strengthen your position in the competitive market with good reputation. ACCA has a strong focus on professional ethics, values and governance.
CIMA - Chartered Institute of Management Accountants

The Chartered Institute of Management Accountants (CIMA) is the world’s largest and leading professional body of management accountants. Their mission is to help people and businesses to succeed in both the public and private sectors.
 CIMA has more than 227,000 members and students in 179 countries. They work at the heart of business in industry, commerce and not for profit organisations. CIMA has strong relationships with employers, and sponsor leading research. Through the partnership with the American Institute of Certified Public Accountants (AICPA), CIMA supports and gives voice to 150,000 Chartered Global Management Accountants (CGMAs) across the globe.

So, this is all about the history of Auditing. Auditing has emerged from day one to till today efficiently. As a business student it is very important to have some idea about auditing. As auditing is a must for organizational transparency.


Faculty Sections / Public private partnership in Bangladesh
« on: March 28, 2019, 01:37:32 AM »
*49 projects are to be dealt with in the framework of PPP as per recent plans.
*external financing source ADB(Asian development bank)
*public sectors must initiate PPP. Unlike pvt sector patronize is done by public sector on the other hand resolution mgt are conducted by pvt sectors.
*Utility, structure formation, decentralization (implementation) - pvt sector work area
*initiative, fund providing (patronizing) – public sector work area
#general guideline from European commission:
1.   Ensuring mkt access & fair competition: to attract the best organization from public sector. Open mkt access is vital to accumulate resources at the cheapest price & with best quality. Best utilization of resources require free market.
2.   Maximizing the value of citizen: (best product best org., best result) for citizens. Govt. sectors product assumed to be of inferior quality & private sectors product calls for greater price. So combination required.
3.   Optimal level of grand financing to ensure sustainability of benefit: funds generated from WB ADB. Donor countries may provide the grand fund. Grand fund = org. fund+ countries fund.
4.   Assessing most effective type of partnership: depending on 3 countries we can identify the type of partnership:
a)   Balanced distribution of risk: depending on the public pvt sectors capability crucial projects risks are beard largely by the govt.
b)   Duration: timespan cannot be modified
c)   Clarity and responsibility: areas of responsibilities must be specific and allocated according to competency level.
#benefits of PPP
PPP advantages:
•   Ensure the necessary investments into public sector and more effective  public resources management;
•   Ensure higher quality and timely provision of public services;
•   Mostly investment projects are implemented in due terms and do not impose unforeseen public sectors extra expenditures;
•   A private entity is granted the opportunity to obtain a long-term remuneration;
•   Private sector expertise and experience are utilized in PPP projects implementation;
•   Appropriate PPP project risks allocation enables to reduce the risk management expenditures;
•   In many cases assets designed under PPP agreements could be classified off the public sector balance sheet.
PPP disadvantages:
•   Infrastructure or services delivered could be more expensive;
•   PPP project public sector payments obligations postponed for the later periods can negatively reflect future public sector fiscal indicators;
•   PPP service procurement procedure is longer and more costly in comparison with traditional public procurement;
•   PPP project agreements are long-term, complicated and comparatively inflexible because of impossibility to envisage and evaluate all particular events that could influence the future activity.
#benefits of PPP
The financial crisis of 2008 onwards brought about renewed interest in PPP in both developed and developing countries. Facing constraints on public resources and fiscal space, while recognizing the importance of investment in infrastructure to help their economies grow, governments are increasingly turning to the private sector as an alternative additional source of funding to meet the funding gap. While recent attention has been focused on fiscal risk, governments look to the private sector for other reasons:
•   Improved operational efficiency: Exploring PPPs as a way of introducing private sector technology and innovation in providing better public services through improved operational efficiency
•   Minimizing time duration: Incentivizing the private sector to deliver projects on time and within budget
•   Budgetary certainty: Imposing budgetary certainty by setting present and the future costs of infrastructural projects over time
•   Developing local pvt sector: Utilizing PPPs as a way of developing local private sector capabilities through joint ventures with large international firms, as well as sub-contracting opportunities for local firms in areas such as civil works, electrical works, facilities management, security services, cleaning services, maintenance services
•   Development of professionals: Using PPPs as a way of gradually exposing state owned enterprises and government to increasing levels of private sector participation (especially foreign) and structuring PPPs in a way so as to ensure transfer of skills leading to national champions that can run their own operations professionally and eventually export their competencies by bidding for projects/ joint ventures
•   Infrastructural development: Creating persification in the economy by making the country more competitive in terms of its facilitating infrastructure base as well as giving a boost to its business and industry associated with infrastructure development (such as construction, equipment, support services)
•   Supplementing limited public sector capacities to meet the growing demand for infrastructure development.
•   Risk transfer: Extracting long-term value-for-money through appropriate risk transfer to the private sector over the life of the project – from design/ construction to operations/ maintenance

Potential Risks of Public Private Partnerships
There are a number of potential risks associated with Public Private Partnerships:
•   Development, bidding and ongoing costs in PPP projects are likely to be greater than for traditional government procurement processes - the government should therefore determine whether the greater costs involved are justified. A number of the PPP and implementation units around the world have developed methods for analysing these costs and looking at Value for Money.
•   There is a cost attached to debt – While private sector can make it easier to get finance, finance will only be available where the operating cashflows of the project company are expected to provide a return on investment (i.e., the cost has to be borne either by the customers or the government through subsidies, etc.)
•   Some projects may be easier to finance than others (if there is proven technology involved and/ or the extent of the private sectors obligations and liability is clearly identifiable), some projects will generate revenue in local currency only (eg water projects) while others (eg ports and airports) will provide currency in dollar or other international currency and so constraints of local finance markets may have less impact
•   Some projects may be more politically or socially challenging to introduce and implement than others - particularly if there is an existing public sector workforce that fears being transferred to the private sector, if significant tariff increases are required to make the project viable, if there are signficant land or resettlement issues, etc.

•   There is no unlimited risk bearing – private firms (and their lenders) will be cautious about accepting major risks beyond their control, such as exchange rate risks/risk of existing assets. If they bear these risks then their price for the service will reflect this. Private firms will also want to know that the rules of the game are to be respected by government as regards undertakings to increase tariffs/fair regulation, etc. Private sector will also expect a significant level of control over operations if it is to accept significant risks
•   Private sector will do what it is paid to do and no more than that – therefore incentives and performance requirements need to be clearly set out in the contract. Focus should be on performance requirements that are out-put based and relatively easy to monitor
•   Government responsibility continues – citizens will continue to hold government accountable for quality of utility services. Government will also need to retain sufficient expertise, whether the implementing agency and/ or via a regulatory body, to be able to understand the PPP arrangements, to carry out its own obligations under the PPP agreement and to monitor performance of the private sector and enforce its obligations
•   The private sector is likely to have more expertise and after a short time have an advantage in the data relating to the project. It is important to ensure that there are clear and detailed reporting requirements imposed on the private operator to reduce this potential imbalance
•   A clear legal and regulatory framework is crucial to achieving a sustainable solution (for more, go to legislation and Regulation)
•   Given the long-term nature of these projects and the complexity associated, it is difficult to identify all possible contingencies during project development and events and issues may arise that were not anticipated in the documents or by the parties at the time of the contract. It is more likely than not that the parties will need to renegotiate the contract to accommodate these contingencies. It is also possible that some of the projects may fail or may be terminated prior to the projected term of the project, for a number of reasons including changes in government policy, failure by the private operator or the government to perform their obligations or indeed due to external circumstances such as force majeure. While some of these issues will be able to be addressed in the PPP agreement, it is likely that some of them will need to be managed during the course of the project

#evaluation system of PPP:
1.   Contract duration: contract is made for how long.
2.   Transfer of responsibility: among pvt and public sector who shares how much responsibility.
3.   Demand risk calculation: if organization demand & quality over rated or under rated
4.   Availability of resource: if total resource is available or not. If resource can be managed or not in case of unavailability.
5.   Contract type: benefit sharing,risk sharing provisions. s

« on: March 28, 2019, 01:34:59 AM »
Foreign trade policy overview:
1.   Import based economy: we import each and every daily necessary products. Even Products like rice, wheat, bean, onion, garlic etc. are also have to be imported to meet up demand. Max amount of them are imported from india.
2.   According to WTO: our trade policy is not mkt oriented, our products are not diversified, our economy is not worldwide linked in. so that financial breakdown cannot harm our economy.
3.   Merchandise export: Export merchandising is a method of offering retail goods for sale in a foreign consumer market. Many large companies across the country maintain entire divisions devoted to finding ways to better enter foreign retail markets through export merchandising to increase profit and sustain growth. But in our country we buy raw materials produce product and sale them. This is not merchandising. merchandising is the practice and process of displaying and selling products to customers. Whether digital or in-store, retailers use merchandising to influence customer intent and reach their sales goals.
#free market: In economics, a free market is a system in which the prices for goods and services are determined by the open market and by consumers. In a free market the laws and forces of supply and demand are free from any intervention by a government, or by other authority.
Proponents of the concept of free market contrast it with a regulated market, in which a government intervenes in supply and demand through various methods — such as tariffs — used to restrict trade and to protect the local economy. In an idealized free-market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.
#for free mkt economy we need
1.   Reducing trade distortion:
Distortion is an economic scenario that occurs when there is an intervention in a given market by a governing body. The intervention may take the form of price ceilings, price floors or tax subsidies. Trade distortion is prohibition trading particular product or trading with particular person. Minimization of trade distortion will increase the amount of export. Where distortion is less, economy becomes booming economy
2.   Anti-export biased:
 Bias of growth refers to economic growth through factor accumulation and/or technological progress and whether it favors one sector or another. Growth is said to be export biased if the export sector expands faster than the rest of the economy, import biased if the import-competing sector does so. Anti-export biased ness refers to at first fulfill internal country demand and then export if excess amount of inventory is in your stock.
3.   Ensuring greater integration or entry to multilateral trading:
MTS (Multilateral Trading System) The system which allows large numbers of countries to agree to trade with each other. The World Trade Organisation (WTO) is part of this system. Trade is a driver for economic growth and sustainable development.
From the early days of the Silk Road to the creation of the General Agreement on Tariffs and Trade (GATT) and the birth of the WTO, trade has played an important role in supporting economic development and promoting peaceful relations among nations.
Multilateral trade agreements are commerce treaties between three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export.
We can entry to greater trading system through creating business cartel. We can ensure greater economic advantage and GDP growth through business cartel. We have a great number of human resource which is comparatively cheap which is main interest for other countries for making trading cartel involving us.
4.   Low tax/ vat collection:
Tax and vat are used to restrict trade and to protect the local economy.
Taxation is considered as the principal source of government earnings, revenue is considered as the fuel of government machineries. In other word it could be said that, government earns through taxation and spend it to provide multidimensional services like security, social safety, health care, road, bridges, transport, education so on and so forth services. Therefore government usually emphasis on enlarging the tax coverage and tax providers net.
Vat is broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption within the country. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely imports are taxed to keep the system fair for country producers so that they can compete on equal terms on the local market with suppliers situated outside the mkt.
We are not able to ensure tax or vat. Business people intentionally import product and don’t receive to skip tax and later purchase without tax from port authority when the products are sold through auction. We cannot progress till this kind of unethical activity of business people goes on.

#Trade policy framework: there are 3 levels- top level, middle level, bottom level.
-   Top level: WTO is in the top level of trade policy framework. With the creation of the WTO in 1995, many scope was extended for trading. The WTO provides quantitative information in relation to economic and trade policy issues. Its data-bases and publications provide access to data on trade flows, tariffs, non-tariff measures (NTMs) and trade in value added.

-   Middle level: SAARC, SAFTA, BIMSTEC, Asia pacific trade agreements are in this part. SAARC: The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka on 8 December 1985. SAARC is the regional intergovernmental organization and geopolitical union of nations in South Asia.
dedicated to economic, technological, social, and cultural development emphasizing collective self-reliance. Its seven founding members are Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the organization in 2007. Meetings of heads of state are usually scheduled annually; meetings of foreign secretaries, twice annually. Headquarters are in Kathmandu, Nepal.
The 11 stated areas of cooperation are agriculture; education, culture, and sports; health, population, and child welfare; the environment and meteorology; rural development (including the SAARC Youth Volunteers Program); tourism; transport; science and technology; communications; women in development; and the prevention of drug trafficking and drug abuse. The charter stipulates that decisions are to be unanimous and that “bilateral and contentious issues” are to be avoided.
The Eighth Meeting of SAARC Finance Ministers was held in Islamabad on 26 August 2016 to review progress in the implementation of their earlier decisions. The Meeting emphasized the need for:
a.   Accelerating the process towards South Asian Economic Union (SAEU) in a phased and planned manner as mentioned in the Declaration of 18th SAARC Summit.
b.   Ensuring implementation of decisions recommended by the Member States at various SAARC mechanisms in order to realize the goals of SAARC Charter to promote the welfare of the people of South Asia and to accelerate economic growth, social progress and cultural development in the region.
c.   Strengthening regional trade through full and expeditious implementation of South Asian Free Trade Agreement (SAFTA) in order to achieve deeper integration and move towards SAEU and also to bring down tariffs, eliminate NTBs/PTBs, reduce sensitive lists for enhanced intra-regional trade under SAFTA;
d.   Operationalize the SAARC Agreement on Trade in Services without further delay by finalizing the schedules of specific Commitments;
e.   Finalize Text of the SAARC Agreement on Promotion and Protection of Investments;
f.   Initiate discussion on widening the scope of SAARC Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters.
g.   Emphasized the need for harmonization of customs procedures and documentations in the region to facilitate movement of goods across the borders.
h.   Underlined the need for improved connectivity in the region including through land, sea and air route and early signing of Motor Vehicle and Railways Agreements.
i.   Strengthen Social Window and operationalize Economic and Infrastructure windows of SAARC Development Fund (SDF) so that tangible benefits are visible on the ground.
j.   Enhanced intra-regional investments with a view to bridge the large infrastructure financing gap in the region;
Safta; The South Asian Free Trade Area (SAFTA) is an agreement reached on January 6, 2004, at the 12th SAARC summit in Islamabad, Pakistan. It created a free trade area of 1.6 billion people in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka (as of 2018, the combined population is 2.08 billion people, about 27% of the world's population of 7685459000 ). The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016.
 The main objective of the agreement is to promote competition in the area and to provide equitable benefits to the countries involved. It aims to benefit the people of the countries by bringing transparency and integrity among the nations. SAFTA was also formed in order to increase the level of trade and economic cooperation among the SAARC nations by reducing the tariff and barriers and also to provide special preference to the Least Developed Countries (LDCs)among the SAARC nations.

Bimstec: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation of seven nations of South Asia and South East Asia, housing 1.5 billion people and having a combined gross domestic product of $3.5 trillion (2018).
The BIMSTEC member states—Bangladesh, India, Myanmar, Sri Lanka, Thailand , Nepal and Bhutan [5]—are among the countries dependent on the Bay of Bengal.
Fourteen priority sectors of cooperation have been identified and several BIMSTEC centres have been established to focus on those sectors.[3][6] A BIMSTEC free trade agreement is under negotiation (c. 2018).
Leadership is rotated in alphabetical order of country names. The permanent secretariat is in Dhaka. There are 14 main sectors of BIMSTEC along technological and economic cooperation among south Asian and southeast Asian countries along the coast of the Bay of Bengal.[4]
1.   Trade & Investment
2.   Transport & Communication
3.   Energy
4.   Tourism
5.   Technology
6.   Fisheries
7.   Agriculture
8.   Public Health
9.   Poverty Alleviation
10.   Counter-Terrorism & Transnational Crime
11.   Environment & Disaster Management
12.   People-to-People Contact
13.   Cultural Cooperation
14.   Climate Change

-   Bottom Level : our ministry of finance, ministry of commerce and industry are included in this level.
Ministry of finance: The Ministry of Finance (Bengali: অর্থ মন্ত্রণালয়; Artho Montronaloya) is a ministry of Bangladesh.[2] The ministry is responsible for state finance, including the state budget, taxation and economic policy in Bangladesh. It is led by the Finance Minister of Bangladesh. The department must report to the Parliament of Bangladesh. It contains four divisions:
•   Finance Division
•   Economic Relations Division
•   Internal Resources Division
•   Bank and Financial Institutions Division
Ministry of commerce and industry: The Ministry of Commerce (Bengali: বাণিজ্য মন্ত্রণালয়; Bāṇijya mantraṇālaẏa) is a ministry of Bangladesh.[2] The ministry is responsible for regulation and implementation of policies applicable to domestic and foreign trade.
#Trade policy development and implementation:
1.   custom tariff a tax paid on goods imported into a country: lower/reduce customs tariffs. Barriers to trade were abolished and a common customs tariff was set up. Custom tariff would be 19.4% on and average to increase export.

2.   Removal of pre-shipment inspection: The Pre-Shipment Inspection (PSI) is one of many types of quality control inspections conducted by related authority. It is an important step in the quality control process and is the method for checking the quality of goods before they are shipped. This sometimes harassment for exporters and prohibits from exporting.

3.   Removal of regulatory duty and supplementary duty: regulatory duty- Import duty is a tax collected on imports and some exports by a country's customs authorities. It is usually based on the imported good's value. Depending on the context, import duty may also be referred to as customs duty, tariff, import- tax or import tariff.
Supplementary duty- Luxury goods non-essential and socially undesirable goods and the other goods and services upon which imposition of supplementary duty is justified in the public interest.  Supplementary duty at the rate specified shall be imposed on such goods and services.
* supplementary-  Tax for implementing something. E.g. tax for adding further floors in a building.
*regulatory- duty for importing anything. E.g. tax for importing a car.
*Supplementary  - there is supplementary duty on 20% product of product line.
*Regulatory-  no regulatory duty is imposed on country produced product line.
*supplementary- duty imposed on phn calls are supplementary duty
*regulatory  -no regulatory duty on such item accept imported goods
*supplementary  - for imported luxurious goods only
*regulatory- for all imported goods

4.   Export prohibition in rare cases: when exported products may harm health, eco system, national security, domestic supply then export may be demotivated. Again if the product will have a negative impact on public health economy, export must be prohibited. Motivate export after internal demand of goods and services are fill up. 
#indirect tax measures:
1.   Duty rates on merchandise import: concessionary duty rates on merchandise heavy industry.
2.   VAT rebate: some export related Tax rebate
3.   Exception of import tax/ income tax: income tax on exported goods should be 0. Exporting and importing tax on agricultural goods should be 0.
4.   Cash grant/ cash back/ subsidy: cash back on some product export would be 50%.
5.   Loan at concessional int rate: decreased int rate on export credit. Back to back LC facility.
#Sectoral policy development: sector wise different policy development.
1.   Cash subsidy for frozen fish, shrimp, fruits, vegetable export.
2.   Subsidization of industrial imports: tax rebate on import
3.   Manufacturing activity dependent on RMG would be facilitated.
4.   Export credit guarantee: ensuring payment guarantee for export.
5.   Subsidy for using local febric.
#liberalization measures: 3 sectors
1.   Financial: fund accessibility increase, fund increase for export import, at the same time ensuring fund back.
2.   Telecommunication: liberal telecommunication, insuring support service for communication, simplifying mobile banking.
3.   Transportation services: free accessibility, easy accessibility to main stream from distant places.
#private participation in shipping and port services: demutualization of ownership, ownership transfer apart from central owner, if we demutualize revenue can be confirmed.
#foreign mkt access through movement of workers: mobilize human resource, increase int trade.

Faculty Sections / Role of economic development
« on: March 28, 2019, 01:27:44 AM »
Measuring economic growth stage, marketing implementation.
#types of economy:  1. According to economic stratification: a) traditional economy (mkt economy, command economy), b) centrally planned economy.
2. Fundamental types of economy: a) mkt economy, b) command economy.
Combination of mkt & command economy is termed as Mixed economy. Our economy is still aspiring to be mkt economy being a mixed economy.
#centrally planned economy Vs command economy:
   Major rules and regulations are provided by govt. but personal assets liabilities are managed by respective persons (in command economy)
   On contrast centrally planned economy is thoroughly maintained and monitored by govt. rules & policies. No personal asset, liability mgt is possible from business perspective. All entities are only govt. employees in such econmy.
#measuring factors to rate/ judge an economy externally: 4 facts
1.   Through National production: GDP, economic value. Domestic production scale is the first impression, GDP is inclusive of national income, govt. spending etc. Drawbacks of GDP calculation- average amount of value measured regardless of social gap. Only volume is considered, how the volume came it is not considered or justified. Income is taken to consideration regardless source of the income. If the income amount is resulted from loaned money or from personal income that is not taken to account.
2.   PPP (Purchase Power Parity): comparison of purchase price for a particular set of product in respective countries is parity. Inferior or superior economy is judged by parity comparison that is which country spends how much money to buy a particular line of product. Which country needs less money in buying one particular line of product is an inferior economy, on the other hand, which country needs more money is a superior economy.
3.   Human development index: increase in 3 aspects:
a)   Basic human needs: basic 5 human needs are food, cloths, shelter, education, medical care. This means not only shelter it includes personal safety, not only food- nutritious food pure food & water. And these basic must be insured to root level village people also. Moreover all of the people of the country should have access to these basic human needs.
b)   Foundation of wellbeing:
i)   knowledge-access to basic knowledge,
ii)   Access to information- access to all kind of information must be insured within 2020
iii)   Health and wellness- prompt access ability to any kind of medicare and enough medicare availability.
iv)   Ecosystem sustainability- this is our responsibility to maintain a sustainable eco-system.
I, ii, iii will be provided by govt. iv is our responsibility.
c)   Opportunity insurance:
i)   Personal rights(consumer rights, land act. Etc.)
ii)   Personal freedom and choice( freedom to talk, freedom of doing legal business)
iii)   Tolerance and inclusion: inclusion to root level people. Communication with root level people.
iv)   Access to advance education- higher education is insured or not.
This index has to be increased to increase socioeconomic condition of a country. At present we have many scopes to improve our condition. To develop our position in index we are to integrate 1. Govt. 2. Business people, 3. Civil society.
4.   Classifying countries: as a country which classification does it fit, developed/ developing/ under developed.
#growth stages:
1.   Traditional society: no organized view, nation or currency. Only barter system existed, that is Exchange of product was the only means of survival. Society was agro based. 
2.   Precondition to takeoff:
a)   Demand for raw materials: demand for raw materials immerged. Seeds were required for agricultural need. Resources produced by other country is also felt to be required in this stage.
b)   Commercial agriculture based economy: agricultural products are attained with exchange of something valuing a formal this stage irrigation, port facilities were introduced and focused.
c)   Existent technology development: technology that already exist were improved in this stage.
d)   Development of national identity and shared economic interest: national interests are generated after national identity allocation. Countries interact politically throughout emergence of political economy.
3.   Take off: industrialization and urbanization mainly in terms of initiating industrial agriculture. World economy flourished in this take off stage in terms of better management of input output. Intense modification during 1940s- 1960s came about as in agricultural revolution & later on in industrial revolution.
4.   Drive to maturity: in order to be a matured economy needed factors are,
a)   Diversification of industrial base
b)   Transportation improvement
c)   Manufacturing activities are to be shifted from investment driven concept  to consumer centric orientation, that is mkt becomes consumer based product mkt
d)   Focus shifts from capital goods to consumer durables
5.   Mass consumption: fully industry based national economy with no extra incomes from other sources. Each sector has to be industrialized. Luxurious high value product consumption has to be increased.
6.    Beyond consumption:
a)   Influenced by law of diminishing marginal utilities. If similar products are purchased regularly and repeatedly then the newest additions won’t generate the previous level of satisfaction.
7.   Economic transition: lags between growth stages.
#drawbacks in the path of economic development:
1.   Lack of managerial expertise/ leadership expertise
2.   Environmental degradation/ destruction
3.   Cultural differences
4.   Shortage/ lack of capital.
#role of pvt. Sectors:
1.   FDI promotion: a) GDP growth rate demonstration.
b)   PPP scope e;mphasized.
Facilities to be given by govt. to promote foreign investment (FDI):
a)   Economy: our economy is of -20 trillion us $ GDP value. The larger the GDP value the larger the mkt.
b)   Uninterrupted supply of electricity: power supply level is crucial to maintain a production level.
c)   Infrastructural facility: roads, transports, support services etc. easy access ability.
d)   Congenial environment: business environment is to be good in terms of :
i)   Raw materials availability
ii)   Consumer availability
iii)   Legal bindings- ease of doing business according to doing business report.
iv)   Industry specific analysis- industry is sustainable or not.
e)   Tax holiday/ tax exemption: investor oriented tax policy is more attractive.
f)   Implementation strategy: state of PPP, govt. Collaboration state, ADB annual development program indicate govt. investment structure which is crucial for FDI decisions.
g)   Investment climate: security level of investments for both expected returns and retaining investors.
h)   Credit rating: s&p, standard and poor state of the country credit rating in terms of iits ability to repay interest.
i)   Joint venture investment: specialized economic zone creation among countries, specialized collaboration for sustainable investment climate.

Faculty Sections / Procurement policy
« on: March 28, 2019, 01:25:50 AM »
#procurement definition: Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Work included in process of input giving to output gaining.
#public procurement: Public procurement refers to the purchase by governments and state-owned enterprises of goods, services and works. As public procurement accounts for a substantial portion of the taxpayers’ money, governments are expected to carry it out efficiently and with high standards of conduct in order to ensure high quality of service delivery and safeguard the public interest.
#procurement development procedure in BD: main targeted dept.(4 departments??)
1.   Good governance
2.   Agriculture
3.   Water management and sanitation
4.   Human rights
5.   LGED
   Good governance: In international development, good governance is a subjective term that describes how public institutions conduct public affairs and manage public resources in the preferred way. Governance is "the process of decision-making and the process by which decisions are implemented (or not implemented)".
   Agriculture: Agriculture development means providing assistance to the crop producers with the help of various agricultural resources. Providing protection, assisting in the research sphere, employing latest techniques, controlling pests and facilitating diversity all fall within the purview of agriculture development.
   Water management and sanitation: Water resource management is the activity of planning, developing, distributing and managing the optimum use of water resources. It is a sub-set of water cycle management. Ideally, water resource management planning has regard to all the competing demands for water and seeks to allocate water on an equitable basis to satisfy all uses and demands. As with other resource management, this is rarely possible in practice. Sanitation refers to public health conditions related to clean drinking water and adequate treatment and disposal of human excreta and sewage. ... Reuse activities within the sanitation system may focus on the nutrients, water, energy or organic matter contained in excreta and wastewater.
   Human rights: Human rights in Bangladesh are enshrined as fundamental rights in Part III of the Constitution of Bangladesh. However, constitutional and legal experts believe many of the country's laws require reform to enforce fundamental rights and reflect democratic values of the 21st century. Proposed reforms include strengthening parliamentary supremacy, judicial independence, the separation of powers, repealing laws which restrain freedom of the press and disbanding security agencies which violate civil liberties. Fundamental human rights are: food, cloth, shelter, education, medical care. Others are ,  Citizenship, socialism, Democracy and human rights,  Right to life and personal liberty, Prohibition of forced labor, Freedom of assembly, Freedom of association,  Freedom of thought, conscience and speech,
   LGED: Local Government Engineering Department (LGED) is an organ of Bangladesh government created for provision of transport infrastructures in rural areas and to provide technical support to the rural and the urban local government institutions (LGIs), planning and implementation of infrastructure development projects in the rural and urban areas to improve communication and transport network, job creation, and poverty reduction
#a team work held on human rights of BD by Denmark, indicated following problems of BD:
1.   Civil servants are not paid well: Often working in the public sector, an employee of the civil service is basically employed by the government to impartially implement their policies and laws. As a result, civil service employees often work in areas that highly affect people's everyday life (e.g. health and education).
As there is no study found whether the civil servants working at the field level of Bangladesh are
satisfied with their job, the main objectives of this study are to map whether those officials are
satisfied with their job and to identify the different factors impacting their job satisfaction.
2.   Centralized power: financial and all other decisions are taken by one. That’s why miss use of power takes place.
3.   Focused to rules and regulations: backdated rule oriented governance. Do not try to find better implementation.
4.   Lack of accountability: govt. service holders specially don’t have to be questioned. That leads to corruption.
#(world banks study highlighted 3 aspects)reformation of this problems: ensuring 3 factors
1.   Standard bidding procedure: using required documents and legally approved procedure for bidding.
2.   Ensuring accountability:  fixing what will be performed in which step.
3.   Publishing invitation for bidding: transparency in bidding procedure. approved bidder to be introduced openly to all.
#comprehensive public procurement reformation implementation problems/ additional problems:
1.   Incident of fraud and corruption
2.   Political influence
3.   Inadequate enforcement of regulations
4.   Cross cutting governance: linking traditionally separate or independent parties or interests. The cross-cutting themes that determine the quality of governance, especially with respect to issues where governance seem especially weak.
#capacity gap/ asset gap: there are 4 pillars of gap that is gap is evidence of 4 scopes
1.   Regulatory changes: Standard procedure of tender by regulatory authority.
2.   Review system/ program system: as it is complex, make it simpler, rewrite complex rules.
3.   Delegation of financial power: highly centralized which must be decentralized.
4.   Management gap: Central processing unit not properly and regularly assessed, monitoring must be initiated.
5.   Bureaucracy Gap: entire activity flow is bureaucratic. There is bureaucracy in every dept.
6.   Low salary: management gap
7.   Lack of leadership: only one leader handles everything. Work should be distributed. Organizational leader must be entitled.
8.   Slow procedure: capacity gap. Minimize the time lag.
9.   Frequent transfer of human resource. (stability crisis)
#civil engagement in procurement reformation:
1.   Increasing social awareness to ensure accountability.
2.   Civil communication ensure, for that $3.4m is allocated.
3.   Guideline must be generated to identify the interaction between govt. and civil citizens. Procedure of interacting must be transparent. Interaction must be through an easy procedure for that best option is online interaction.
4.   Framework: this is to include a group of business people as the ultimate implication is conducted t6hrough them.
#BD bank invested extra 10 million $ to facilitate:
1.   Efficiency: for making civil society more efficient in all aspects.
2.   Transparency: more and more online apps are developing for easy access to documents.
3.   Economy increase: involving and connecting each and every industry, preparing developing 13 industries. To prepare private sectors, to prepare for grater GDP, workforce must be prepared to capture the change, resources must be flexible for implementation, Industry of each type have to be distinctively ready, reformation of each sector to current need.
#already e-GP (electronic govt procurement) started in 4 dept. : (rural electrification board)
1.   REB Rural Electrification Board
2.   Water development board
3.   Roads and highways development
4.   LGED (Local Government Engineering Department)
#steps for attending procurement system:
1.   Visiting advertisement
2.   Tender submission
3.   Tender analysis and selection
4.   Contract owner of selected tented/ contact winner
#to win tender traits are required:
1.   Active and responsive
2.   Bidding price must be lowest
3.   Qualified in each requirement

Different Definitions of Risk
• Risk: Uncertainty concerning the occurrence of a
• Loss Exposure: Any situation or circumstance in
which a loss is possible, regardless of whether a
loss occurs
• Objective Risk vs. Subjective Risk
– Objective risk is defined as the relative variation of actual
loss from expected loss
– Subjective risk is defined as uncertainty based on a
person’s mental condition or state of mind.

Chance of Loss
• Chance of loss: The probability that an event will
• Objective Probability vs. Subjective Probability
– Objective probability refers to the long-run relative
frequency of an event based on the assumptions of an
infinite number of observations and of no change in the
underlying conditions
– Subjective probability is the individual’s personal estimate
of the chance of loss.

Chance of Loss vs. Objective Risk
• Chance of loss is the probability that an event that
causes a loss will occur.
• Objective risk is the relative variation of actual loss
from expected loss
The chance of loss may be identical for two different
groups, but objective risk may be quite different!

Peril and Hazard
• A peril is defined as the cause of the loss
– In an auto accident, the collision is the peril
• A hazard is a condition that increases the
chance of loss
– A physical hazard is a physical condition that
increases the frequency or severity of loss
– Moral hazard is dishonesty or character defects
in an individual that increase the frequency or
severity of loss.

Peril and Hazard
– Attitudinal Hazard (Morale Hazard) is
carelessness or indifference to a loss, which
increases the frequency or severity of a loss
– Legal Hazard refers to characteristics of the legal
system or regulatory environment that increase
the frequency or severity of loss.

Classification of Risk
• Pure and Speculative Risk
– A pure risk is a situation in which there are only
the possibilities of loss or no loss (earthquake)
– A speculative risk is a situation in which either
profit or loss is possible (gambling).
• Diversifiable Risk and Nondiversifiable Risk
– A diversifiable risk affects only individuals or
small groups (car theft). It is also called
nonsystematic or particular risk.
– A nondiversifiable risk affects the entire economy
or large numbers of persons or groups within the
economy (hurricane). It is also called systematic
risk or fundamental risk.
– Government assistance may be necessary to
insure nondiversifiable risks.

• Enterprise risk encompasses all major risks
faced by a business firm, which include:
pure risk, speculative risk, strategic risk,
operational risk, and financial risk
– Strategic Risk refers to uncertainty regarding the
firm’s financial goals and objectives.
– Operational risk results from the firm’s business
– Financial Risk refers to the uncertainty of loss
because of adverse changes in commodity
prices, interest rates, foreign exchange rates,
and the value of money.

• Enterprise Risk Management combines into
a single unified treatment program all major
risks faced by the firm:
– Pure risk
– Speculative risk
– Strategic risk
– Operational risk
– Financial risk

• As long as all risks are not perfectly
correlated, the firm can offset one risk
against another, thus reducing the firm’s
overall risk.
• Treatment of financial risks requires the use
of complex hedging techniques, financial
derivatives, futures contracts and other
financial instruments.

Major Personal Risks
• Personal risks are risks that directly affect
and individual or family. They involve the
possibility of a loss or reduction in income,
extra expenses or depletion of financial
assets, due to:
– Premature death of family head
– Insufficient income during retirement
– Poor health (catastrophic medical bills and loss
of earned income)
– Involuntary unemployment

• Property risks involve the possibility of
losses associated with the destruction or
theft of property
• Direct loss vs. indirect loss
– A direct loss is a financial loss that results from
the physical damage, destruction, or theft of
the property, such as fire damage to a home
– An indirect or consequential loss is a financial
loss that results indirectly from the occurrence
of a direct physical damage or theft loss, e.g.,
the additional living expenses after a fire
• Liability risks involve the possibility of being
held legally liable for bodily injury or
property damage to someone else
– There is no maximum upper limit with respect to
the amount of the loss
– A lien can be placed on your income and
financial assets
– Legal defense costs can be enormous

Major Commercial Risks
• Firms face a variety of pure risks that can
have serious financial consequences if a loss
– Property risks, such as damage to buildings, furniture and
office equipment
– Liability risks, such as suits for defective products,
pollution, and sexual harassment
– Loss of business income, when the firm must shut down for
some time after a physical damage loss
– Other risks to firms include crime exposures, human
resource exposures, foreign loss exposures, intangible
property exposures, and government exposures

Burden of Risk on Society
• The presence of risk results in three major
burdens on society:
– In the absence of insurance, individuals and
business firms would have to maintain large
emergency funds to pay for unexpected losses
– The risk of a liability lawsuit may discourage
innovation, depriving society of certain goods
and services
– Risk causes worry and fear

Techniques for Managing Risk
• Risk Control refers to techniques that
reduce the frequency or severity of losses:
– Avoidance
– Loss prevention refers to activities to reduce the
frequency of losses
– Loss reduction refers to activities to reduce the
severity of losses

• Risk Financing refers to techniques that
provide for payment of losses after they occur:
– Retention means that an individual or business firm
retains part or all of the losses that can result from
a given risk.
– Active retention means that an individual is aware of the
risk and deliberately plans to retain all or part of it
– Passive retention means risks may be unknowingly
retained because of ignorance, indifference, or laziness
– Self Insurance is a special form of planned retention by
which part or all of a given loss exposure is retained by
the firm
• A Noninsurance transfer transfers a risk to
another party.
– A transfer of risk by contract, such as through a
service contract or a hold-harmless clause in a
– Hedging is a technique for transferring the risk of
unfavorable price fluctuations to a speculator by
purchasing and selling futures contracts on an
organized exchange
– Incorporation of a business firm transfers to the
creditors the risk of having
• For most people, insurance is the most
practical method for handling major risks
– Risk transfer is used because a pure risk is
transferred to the insurer.
– The pooling technique is used to spread the
losses of the few over the entire group
– The risk may be reduced by application of the
law of large numbers

Faculty Forum / Another varsity student died by road accident.
« on: March 23, 2019, 11:26:21 PM »
A student of Sylhet Agricultural University (SAU) was killed on Sylhet-Mymenshingh Highway in Moulvibazar this evening after he was allegedly pushed out of a running bus by its helper following an altercation.
The deceased was identified as Wasim Afnan, 21, son of Abu Zaher Mahbub and Dr Mina Parvin, and a fourth-year student of the university’s Biotechnology and Genetic Engineering department, reports our Moulvibazar correspondent.
After attending a marriage ceremony in Habiganj, Wasim along with some of his friends was returning to the university by a ‘Udar Paribahan’ bus around 6:00pm when the students locked into an altercation with the bus driver and his helper over fare, Kamrul Islam, a sub-inspector of Sherpur Highway Police Station, told The Daily Star.
Wasim was run over by the speedy bus after he was pushed out of it by the helper, leaving him severely injured, the SI said.
He was rushed to Sylhet MAG Osmani Medical College Hospital where the doctors declared him dead, said Siplu Roy, a friend of the victim who was present during the incident.
The bus was later seized by police from Begumganj area of Osmaninagar upazila in the district, the police official said.
However, the driver and the helper managed to flee, he added.
Following the incident, many students gathered at Sylhet Central Shaheed Minar and staged demonstration demanding justice for Wasim. The agitating students also vandalised some vehicles at Sylhet Bus Stop, our correspondent reports quoting witnesses.

Finance & Banking / Prospect of real state graduates
« on: March 23, 2019, 11:00:45 PM »
I think real estate graduates have good prospect in home and abroad (both in private  and  public sector). Expecting opinion from you all. Please share your opinion here.     

Would you please share your opinion, how it will bring benefit?

Accounting degrees develop a student’s understanding of accountancy practices, commerce, industry and finance also. Besides developing a range of subject-specific and technical skills, you should focus more general skills like:
•   knowledge and awareness of business organisations;
•   numerical and quantitative skills;
•   problem-solving and analytical ability;
•   oral and written communication skills;
•   ability to argue your case and negotiate;
•   knowledge of global business issues and language skills( Good English at least)
•   entrepreneurship.
•   situation and time management

"I am completely indigenous," APJ Abdul Kalam told The New York Times in 1998.
Nobody could have put it better. Kalam was the embodiment of every Indian ideal. His rags-to-success story made him an achiever against insurmountable odds; contribution to Indian defence and military gave him the aura of a nationalist; conduct in the Rashtrapati Bhawan turned him into a People's President-- a People's Prince type epithet that instantly gave the West a measure of his popularity; and his inspiring speeches and books made him a hero of the youth and children.
As a son, student, scientist, President, teacher, preacher, poet, writer, aficionado of classical Indian music, inspiration for a film (I am Kalam) and the new Chacha of children of India, Kalam lived an all Indian dream.

"In recent history, only a few had endeared themselves to the young and old, poor and the rich, and to people belonging to different faiths,” former finance minister P Chidambaram rightly summed up Kalam's enormous popularity.
Kalam had many virtues that we hold close to our heart. Never give up, don't let failure destroy your dream, concentrate on your karma without thinking of the result, don't let success get to your head and put country above race and religion. Kalam practiced all of them.
As a student born in a humble family, he sold newspapers to support the family and finance his education. When Kalam was rejected for the job of a fighter pilot, a dream he had nourished since childhood, he took up an entry-level post at Hindustan Aeronautics Ltd.
And there was no looking back. A man, who was considered not good enough to fly a plane, became the architect of India's missile programme. From somebody who was rejected as a fighter, Kalam went on to become the face of India's nuclear programme. Kalam showed the world that he had wings of steel and determination of iron.
Kalam's karma brought him not just the deserved fruits of labour, but much more than that. "Kalam did not seek office; the office sought him," Natwar Singh memorably said after he was elected President. He remains a compelling example of how a karma yogi becomes destiny's favourite child.
Kalam was not the original choice for President in 2002. It was widely believed that PC Alexander, principal secretary to former PM Indira Gandhi, would get the job. Alexander, who was the governor of Maharashtra during Atal Bihari Vajpayee's government, was acceptable to most of the NDA constituents. And his past made him believe that even the Congress would back him. To his dismay, Sonia Gandhi refused to back Alexander's candidature.
For a very brief period, it seemed vice-president Krishna Kant would get the job. But he was also denied the opportunity after being tipped off to be ready for the election.
During this period, the BJP was trying to shed its rabid pro-Hindutva image -- a pursuit that ultimately ended with LK Advani's ill-fated paean to MA Jinnah. And Mulayam Singh, it is believed, offered a deal that the BJP couldn't resist. (Ironically, when Kalam became the front-runner for the President's post in 2012, it was Mulayam Singh who backed out at the last minute, paving the way for Pranab Mukherjee's election.)
When the Samajwadi Party agreed to support Kalam as the next President, a consensus soon developed even within the Congress to back his presidency. His election could have been unanimous, but for the Left's decision to prop up Captain Lakshmi Sehgal as token of resistance. Kalam's tenure had the potential of getting marred with controversies. But it is an ode to his personal integrity and administrative tact that he managed to steer India through a political storm.
His biggest challenge, of course, was the issue of Sonia Gandhi's eligibility to become PM. After the Congress emerged as the single-largest party in 2004, Sonia's expected ascent to the top job created a political furore. Unexpectedly, Sonia opted out of the race and named Manmohan Singh as the party's choice for PM.

There were rumours that Sonia had backed out because President Kalam raised the issue of her Italian citizenship. But Kalam maintained a dignified silence through the brouhaha. Years later, in his memoirs, Kalam revealed that if Sonia had staked claim to the post, he would have had no option but to appoint her.
Controversies, though, dogged Kalam for his role as a nuclear scientist. Some of his critics, like Homi Sethna, questioned Kalam's credentials saying he had received his masters degree in aerospace engineering, which is completely different from nuclear engineering. Kalam's entire cult as the face of India's nuclear programme also came under cloud when K Santhanam, the site director of Pokaran II, called the test a 'fizzle' and criticised Kalam for giving a false report.
And when Kalam became the President, Princeton scholar M V Ramana attributed it to Kalam's ability to "dress up even mediocre work with the tricolour to pass them off as great achievements." But, nothing could stop Kalam from becoming a legend.
When the history of post-Independence India is written, Kalam would rank right up there, in the company of legends like Mahatma Gandhi, Jawaharlal Nehru and Rabindranath Tagore. He will inspire India and Indians for years to come.
In his poignant goodbye to Kalam, his aide Srijan Pal Singh says, he once asked Kalam what would he like to be remembered as: "President, scientist, writer, Missile Man, Indian 2020, Target 3 billion..what?"
Kalam replied: "Teacher."
Yes, Kalam would be remembered for teaching us the value of both karma and raj dharma.(Collected)

যেকোন বাবা-মা চান তার সন্তান আত্মবিশ্বাসী হোক, নিজেকে চিনুক, নিজেকে বিশ্বাস করুক। কিন্তু ছোট্টবেলা থেকে অনেক বেশি পরনির্ভরশীলতার কারণে অনেক সময়েই মানুষ বড় হবার পরেও নিজের ওপর বিশ্বাস রাখতে পারেনা এবং পরবর্তীতে এর প্রভাব পরে কর্মক্ষেত্রে। বাস্তব জীবনের খুব ছোট্ট আর কঠোর সত্য হচ্ছে মানুষ একা। তাই দিন শেষে নিজের ছোট ছোট কাজের জন্যেও অন্যের ওপর নির্ভর করা কিংবা অন্যের মন্তব্যকে কেন্দ্র করে জীবন যাপন করা কেবল কর্মজীবনেই নয়, ব্যক্তিগত জীবনেও একজন মানুষকে অন্যের চোখে করে তোলে হাস্যকর। তৈরি করে আরো অনেক বেশি হীনমন্ন্যতা! আর তাই এই সমস্যাকে মোকাবেলা করতে ছোটবেলা থেকেই কিছু সহজ কাজ করার মাধ্যমে করে তুলুন আপনার সন্তানকে অনেক বেশি আত্মবিশ্বাসী!
১. হেরে যেতে দিন
বাবা-মা কখনোই চান না সন্তান হেরে যাক। আর তাই অনেকেই বুক দিয়ে আগলে রাখেন সন্তানকে। সাহায্য করেন জিততে। এটা ঠিক যে বাবা-মা হিসেবে আপনার না ইচ্ছে করতেই পারে যে সন্তান হেরে গিয়ে কষ্ট পাক। কিন্তু মনে রাখবেন যে হারের মাধ্যমেই মানুষ শেখে। বড় হয়। একবার হারলে মানুষ হারকে মোকাবেলা করার শক্তি পায়। বিপদে পড়ার মাধ্যমে মানুষের আরো বেশি মানসিক শক্তি আড়ে সামনের বিপদকে সরিয়ে দেওয়ার। আর তাই সন্তান কষ্ট পেয়ে কাঁদলে বা হেরে গিয়ে মন খারাপ করলে তাকে সেখান থেকে সরে আসতে না বলে মুখোমুখি হবার সাহস দিন। হয়তো সে আবার হারবে। তারপরও।
২. দায়িত্ব নিতে দিন
আমাদের সমাজে সন্তান কি করবে না করবে সেসবের সিদ্ধান্ত অনেকখানি তার মা-বাবাই নিতে চান। কিন্তু সবচাইতে ভালো হয় যদি আপনার সন্তানকে তার জীবনের সিদ্ধান্ত আপনি নিজেই নিতে দেন এবং বোঝান যে যেহেতু সে এই সিদ্ধান্ত নিজে থেকেই নিছে সুতরাং এর ফলাফলটাও পুরোপুরি তার। এতে করে সন্তান নিজের সিদ্ধান্ত নেবার মতো মানসিক শক্তি অর্জন করবে আর যে কোন কাজের ফলাফল কেমন হতে পারে সে সম্পর্কেও ধারণা পাবে।
৩. সাহায্য করতে অনুপ্রেরণা দিন
যেকোন শিক্ষা সেটা ঘর তেকেই শুরু হওয়া উচিত। আর তাই আত্মবিশ্বাস বাড়ানোর জন্যে ঘরের কাজকর্মে সাহায্য করতে অনুপ্রেরণা দিন সন্তানকে। হতে পারে সেখানে প্রতিযোগিতার ব্যাপারও থাকতে পারে। এতে করে আপনার সন্তান কেবল অনেক রকমের কাজই শিখবে না, প্রতিযোগিতামূলক মনোভাব আর সাহায্য করার ইচ্ছাকেও নিজের ভেতরে ধারণ করবে।
৪. চ্যালেঞ্জ করুন
সন্তানকে চ্যালেঞ্জ করুন। হতে পারে সেটা ঘরের কোন ব্যাপারে কিংবা স্কুলের কোন খেলায়। এতে করে সে শিখবে নিজের শক্তিতে কি করে আরো ভালো অবস্থানে যাওয়া যায় এবং তাও আর সবাইকে নিয়ে। আর সে ভালো কিছু করলে সেটাকে উদযাপনও করুন।
৫. দায়িত্ব দিন
ঘরের ছোটখাটো ব্যাপারগুলোতে সন্তানকে দায়িত্ব দিন। সেটা হতে পারে বাইরে খেতে যাওয়া বা মুভি দেখার মতো বিষয়। এতে করে আপনার সন্তান সিদ্ধান্ত নেওয়ার সুযোগ পাবে।
৬. শখকে উত্সাহ দিন
সন্তানের অনেক রকমের শখ থাকতে পারে। হতে পারে সেটা ডাকটিকিট সংগ্রহ করা কিংবা বই পড়া। তাকে নিজের শখকে ধরে রাখার ক্ষেত্রে উত্সাহ দিন। এতে করে সে মুক্তভাবে নিজের ইচ্ছেমতন কাজ করতে ও সেই ক্ষেত্রে অন্যদের সাথে প্রতিযোগিতামূলক কাজের মাধ্যমে চারপাশকে আরো ভালো করে জানার সুযোগ পাবে।
৭. সন্তানের কথা শুনুন
হতে পারে সেটা ছোট কোন ব্যাপার কিংবা আপনি তার কথা পুরোপুরি বুঝতে পারছেন না। তবুও সন্তানের পুরো কথাটা মনযোগ দিয়ে শুনুন। তার কথা কেউ গুরুত্ব দিয়ে শুনছে এটা বুঝতে পারলে নিজের প্রতি নিজের আত্মবিশ্বাস বাড়বে তার। শুধু তাই নয়, শোনার পাশাপাশি আপনি নিজেও তাদেরকে বলুন আপনার কথাগুলো।
৮. সত্যিটা জানান
হয়তো আপনার সন্তান অন্যদের চাইতে কিছু একটা কম পারে বা কোন দিক দিয়ে খানিকটা পিছিয়ে আছে। মোটেই তাকে বড় বড় কথা বলে মন ভারো করার চেষ্টা করবেন না। কারণ সেটা হয়তো খানিক সময়ের জন্যে তার মন ভালো করে দেবে। এর চাইতে বরং তাকে সত্যিটা বলুন যে আসলেই সে খানিকটা পিছিযে রয়েছে সেই ব্যাপারটাতে বন্ধুদের চাইতে এবং আরেকটু চেষ্টা করলে অনেক বেশি ভালো করতে পারবে।
৯. তুলনা করা বন্ধ করুন
ভালো বা খারাপ কারো সাথেই সন্তানের তুলনা করতে যাবেন না সন্তানের। সেটা কেবল সন্তানকে অনেক সময় কষ্টই দেয়না। প্রশংসার অন্ধকারে তলিয়ে ফেলে যেখান থেকে সে নিজে কখনো বেরিয়ে আসতে পারেনা। আর তাই কেবল অন্য কারো ভালো বা খারাপ অবস্থানের কথা উল্লেখ করুন। তুলনা নয়। সেটা আপনার সন্তান নিজেই করে নেবে।
১০. স্থান দিন
পরিবারের ছোট্ট সদস্য হলেও সে যে আপনাদের ভেতরে অনেকটা জায়গা জুড়ে রয়েছে এবং তার উপস্থিতি যে আপনাদের জন্যে অনেক বেশি গুরুত্বপূর্ণ সেটা বোঝাতে পারিবারিক যে কোন আলোচনাতেই সন্তানকে রাখুন। তাকেও নিজের মতামত প্রকাশ করার জায়গা দিন।( Collected)

BBA Discussion Forum / Ethics in the Accounting Profession
« on: July 14, 2015, 06:34:47 PM »

The American Institute of Certified Public Accountants (AICPA) is a professional organization responsible for developing professional accounting ethical values. The AICPA requires professional accountants to act responsibly when engaging in accounting services and reviewing sensitive financial information. Accountants should always exercise sound moral judgment in all accounting activities. Accountants have the unique responsibility to provide clients with professional services while presenting a truthful and accurate assessment of a company & a company's financial health to the general public.
1.   Integrity
2.   Objectivity and Independence
3.   Due Care

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