List of Greek Mythology Characters Essay

There are many mythologies in the world, and all of these have things in common as well as differences. A very popular mythology would be Greek mythology, Which many people know about it or at least know of it. Another not as popular mythology is Norse mythology; Norse mythology is the religion of the Norse people. The Norse people are the ancient people of northern Europe (Scandinavia, Iceland, Denmark, Northern Germany etc. ) (World Book 259). A major difference between Norse mythology and Greek mythology are both cultures views of the after life and what happens there. In Greek mythology there is one allotted place for people to go after death and once they are there they stay there for all eternity. In Norse mythology there are four different places for the dead: Folkvang, Valhalla, Helheim, and Ran’s hall or the halls of Ran. Folkvang is the allotted area for your everyday warrior who fought and died and did nothing more. Valhalla is Odin’s hall where 800 of the bravest warriors go and train for the coming of Ragnarok (literally the ending of the gods or the end of the world) (Wikipedia online). Helheim is literally the house or home of Hel; Hel is the goddess of the â€Å"underworlds† Niflheim (land of fire and heat) and Helheim. Helheim is the place where one who didn’t die â€Å"gloriously†(Wikipedia online) or in battle goes, those who died from diseases, accidents, old age, etc. Ran is the goddess of the sea and the drowned. She is said to sink ships and collect the drowned in a net and take them to her hall where they dwell there. In Greek mythology they go to the underworld (or Hades) and they are then separated and either got to Tartarus (hell) or the Elysian fields (heaven) (World Book 257). Folkvang, Valhalla, Helheim, and The Halls of Ran are four separate areas in the world of Norse mythology where as Hades is one and Tartarus and the Elysian fields are two places within Hades. Also each place in Norse mythology is based on four different types of deaths, not by how you act (with the exception of Valhalla) but by how you died. Where as in Greek mythology there is a subconscious good and bad categorizing of your deeds and actions during your life rather than how you died. Another difference is the creatures. In Greek mythology there are three basic non-human creatures: the gods, the titans, and the nymphs. In Norse mythology there are 5 main non-human creatures: the Aesir and Vanir (gods), the Jotnar (giants), the Alfar (Alfar), Svartalfar (dark Alfar), and the Valkyries. The Aesir and the Vanir are your basic extraordinary immortals, though in Norse mythology the gods were thought to be mortal, only kept immortal by eating the apples of Idun. However, they could be slain even if they ate the apples. The Jotnar were giants or the Norse equivalent to the Greek titans, but the Jotnar did not fight with the gods in a war like the titans did with the Greek gods. The Alfar are lesser â€Å"gods† that control nature. Alfar are viewed as â€Å"gods† of fertility due to their connection to nature (agriculture specifically); they’re not actual gods in the sense it is used but more so magically inclined creatures. Finally are the Svartalfar or commonly referred to as dwarves, trolls, dark Alfar, or black Alfar. The Svartalfar aren’t anything like the Alfar; they are regarded as being small, disfigured people who dwell in mountains and mounds and hate the light. The Svartalfar were master craftsman and made many things for the gods such as Thor’s hammer (Mjollnir) a wall around Asgard (land of the gods) and countless rings. In Norse mythology they seem to have to â€Å"clans† or groups of gods, the Vanir and the Aesir. They don’t appear to have any noticeable differences. The Vanir are referred to as â€Å"lesser† gods and are usually viewed as gods and goddesses of fertility. The Aesir are more of your standard gods and goddesses with a supreme god or goddess and other gods and goddesses with standard roles (i. e. sea, music/poetry or art, war, wisdom, beauty, etc). Valkyries are spirits that choose the wariors that go to Valhalla and take them their. There isn’t much information on Valkyries other than them being the spirits that choose and guide the select few to Valhalla. There are only twenty-three of them. The Jotnar were created originally from the first Jotnar (Ymir). Ymir was killed by Odin and Odin created Midgard (land of humans) from his body. Ymir was created from the collision of Niflheim and Muspellheim (land of fog, ice, and cold) in the beginning; from the sweat from his armpits were created the first two frost giants, male and female, and from them came the rest of the frost giants; from his leg came also another male giant. The Jotnar were known to mate with both the Aesir and Vanir. In Greek mythology the gods didn’t mate with the titans. Also the nymphs were sometimes referred to as daughters of the gods where as the Alfar, Svartalfar, and Valkyries were not. (Keenan 54) Finally, Ragnarok, or the end of the world, is the biggest difference between Norse mythology and most all mythologies including Greek. Ragnarok is the essential â€Å"end of the world† although no actual destruction of the world comes to pass during it. Ragnarok is a very detailed battle where all the warriors from Valhalla fight with Odin and the rest of the Aesir against the Jotnar and Loki (the god of trickery). This cannot be compared to anything in Greek mythology Because Greek Mythology doesn’t have an equeivalent to Ragnarok or anything close. In conclusion Norse mythology and often forgotten mythology is very different from many mythologies. Proof being in large difference between Norse and Greek Mythology. Death isn’t judged by your actions but by how you died. There are many more magically inclined creatures. Also the end of the world which no other mythology that I am aware of has. Works Cited Keenan, Sheila. Gods, Goddesses, and Monsters: An Encyclopedia of World Mythology. New York: Scholastic, 2000. Norse Mythology. (Online) Available http://en. wikipedia. org/wiki/Norse_mythology 3 May 2005. â€Å"Teutonic Mythology. † World Book. 2001 ed.

A Review of A View From The Bridge Essay

A View From The Bridge, a powerful play by Arthur Miller, was staged in the round at the Manchester Royal Exchange. By producing the play in the round, the action could be viewed from all angles which was a more effective way of portraying the story. It also allowed the entire stage to be used without loss of action which allowed the stage to be split into two sections – the street and inside the house. These two portions of the stage were quite obvious, being symbolised by the telephone booth (a key prop later in the play) and the dining room table. That said, other furniture such as Alfieri’s desk, seemed a little unnecessary, especially since it had to be brought in from off stage for each of Alfieri’s scenes. This wasn’t helped by the general lighting in the theatre which could never provide a complete blackout on stage due to the large amounts of windows in the upper seating areas. The stage lighting was fairly simple with neutral ‘general’ lights used for most scenes. This was developed somewhat in important scenes such as Eddie’s death and the lighting was altered (although not significantly) when Alfieri recited his monologues. However sound was used quite effectively in these scenes with the same effect being used to symbolise a change in the setting. Although the play featured very little props, when they were used, they were used to great effect such as the crates being lowered at the beginning or the characters using real food in the dinner scene and then eating it. This also helps instil a sense of realism into the play and helps the audience to relate to the storyline. Throughout the play, tension was slowly but cleverly built up to the final climax. The main character doing this was Eddie whose ever increasing hatred of Rodolpho built up the tension until the all important telephone booth came into play. From there Eddie’s desperation turned to madness and Con O’Neill’s portrayal of Eddie made him seem like something out of a horror film, which only helped to add to the tension. The lighting in the play also helped add to the tension with more menacing and ominous lights used as the play progressed through the second act. All of the characters where depicted beautifully in the play thanks to wonderful acting paired with realistic costumes, which made this play a real delight to watch. The costumes worn by the characters were simple but effective, accurately representing the style of 1940s New York. The costumes also helped contrast the personalities between Eddie and Rodolpho with Eddie’s typical ‘working man’ clothes and Rodolpho in his smart shirts and stylish shoes. The acting was let down somewhat by the voice acting of Catherine (Leila Mimmack) whose accent seem to be very variable, ranging from broad New York to almost full-on Italian. The voices of everyone in else in the play however were superb and really helped to make the play more realistic and believable. In particular Ian Redford did a sterling job, brilliantly portraying Alfieri’s helplessness and narrating the story with exactly the right tone. A moment that really stood out for me was the very last scene in which Eddie is trying to get Marco to give him back his respect. Con O’Neill portrays Eddie’s desperation magnificently and uses every part of his body to make him seem crazy, especially his facial features. The same could also be said about Nitzan Sharron’s character Marco who is so furious with Eddies, he is practically on fire. This scene is a really shocking point in the storyline which was wonderfully acted by all since the scene featured nearly all the cast. The scene was let down somewhat by the over exaggerated and unrealistic death of Eddie Carbone. Even though producing a realistic death scene is hard to do in any play, the way Eddie was stabbed and O’Neill’s acting on his death was a bit disappointing. However this may be due to the fact that the play was performed in the round and so not everyone can experience the death as it was intended. The scene was well rounded off by Alfieri who delivered his consistently good speech which helped end the scene, and the play, extremely well.

Afghan-war prisoners Essay Example for Free

Afghan-war prisoners Essay American Civil War (234) , Prisoner (26) company About StudyMoose Contact Careers Help Center Donate a Paper Legal Terms & Conditions Privacy Policy Complaints ? Some insurgents’ failed attempt on an US military convoy was provocation enough for them to gun down 16 civilians, leaving another 25 severely wounded. The groups – dead and alive, contained woman and children. It is an event of March 4, 2007, took place in Iraq, on the Jalalabad highway in eastern Nangarhar province. The day next US army again responded the terrorist attack by 2000-pound aerial bombing in the civilian area, killing five women and three children. This happened at the Kapisa outpost. These are regular features in Iraq; between January 2006 till date, more than thousands of civilians were killed by US attack. Back home, US authorities are no less active under the ‘anti-terrorism’ movement. Ahmed Alenany, an Egyptian physician, was picked up from the road of New York City and was detained for five months, charged with overstaying, in spite of his valid ground of filing for its extension well before the expiry. His fault was that the police found two pictures of WTO in his car and he held a roadmap when arrested. That was one bubble on the sea. The United States securely took away 650 Afghan-war prisoners to their military base at Guantanamo Bay, Cuba, where they are reportedly passing their days in small single-person cells. India: On July 2005, four Kashmiri youths went to attend a wedding in Vilgam, Kupwara, and while out in the open at night for smoking away from the disapproving adults, three of them were gunned down by the Indian army all on a sudden. Later army admitted its mistake and wanted to compensate, though there was enough effort to suppress this news. India is also experiencing zero tolerance in counter-terrorism, especially after the militant attack on its parliament on December, 2001. They have even created a special law, â€Å"POTA† , which is capable of detaining anyone under the slightest suspicion on any ground of terrorism, that would later arrest 131 Muslims for the Godhra carnage of Hindus in 2002, who later retaliated with the killings of 2000 Muslims throughout the Gujrat state, were mostly able to slip past this law. China: Charged for â€Å"crimes of terror† and â€Å"incitement to separatism†, the popular religious leader Tenzin Delek Rinpoche was arrested in Sichuan on a night in December 2002 and sentenced to death. He was linked to the series of bombings. Same fate met his co-defendant Lobsang Dhondup, even quicker as he was executed. Now the open secret was that the authorities were up against his activities all the time, as he was a known supporter of the Dalai Lama. Egypt: This country has a track record of arresting hundreds of people either for their proximity to the Muslims, or for possessing â€Å"suspicious† literature. In a known case, 94 such victims, allegedly belonging to an â€Å"Islamic Group† though none heard about its name), were arrested in May, 2001. It was before the September 11 attack and after the attack, they were charged additionally for plotting to kill the government officials! The hapless victims belong to almost all rank and file – Doctors, engineers, professors, to name a few. They were dragged into the military courts whose norms, understandably conform to the trial standards set internationally. Accordingly, 51 were convicted! Georgia: Armed by the US support Georgian authorities have targeted the Chechens at Pankisi Gorge, a place which Russia also labelled as a â€Å"haven for the terrorists†. Here the governmental approach to the human rights violations is indicative of non-caring, as it is echoed by the words of its President Eduard Shevarnadze, who, right after extraditing five Chechens to Russia (October 5, 2002) without holding any court, said, â€Å"International human rights commitments might become pale in comparison with the importance of the anti-terrorist campaign† Afghan-war prisoners. (2017, Apr 25).

Starbucks Essay Example | Topics and Well Written Essays - 1250 words - 2

Starbucks - Essay Example Its sales and expansions are growing faster each and every decade. In the financial year 2013, the sales were recorded US$ 180,000 and the purchasers of these specific brands were around 27000 people according to a media report. Growth of this company contributing a lot in the economic health of the United stated. It brings employment opportunities in the country, positively effects gross domestic product GDP of the country as well. This company has selected because this can give us better and accurate business picture. It has a relatively good position in overall coffee industry. The data provided for this company must be accurate and flawless reason being its one of the best and successful business from many years. There are professional financial analysts that are maintaining all of its financial record effectively and efficiently. Star buck actively participating in the social and environmental activities. However the Starbucks established in 1971 but in 1999 it started a â€Å"Grounds for your Garden† in order to make the business environmental friendly For instance, instead of throwing away spent coffee grounds during the summer season, these grounds are left out for green-thumbed customers who want to use them in their gardens as a source of acid for the soil. In 2004, star bucks started a campaign to reduce the size of their paper napkins, store junk bags and alleviate their solid waste production. Environmental Protection Agency ranked Star bucks at number 15 in 2008. According to one of US newspapers named ‘Sun’ reported that star bucks is wasting 23.4 million liters water per day. In response to this published report star bucks start working for the saving of water in 2009, it re assessed its dipper well systems to control the excessive use of water. After few months of efforts, star bucks successfully developed the new water saving solutions to meet the government health standards. This strategy helps all the operating stores of star

Saudi undergraduates' perceptions about English academic listening Dissertation

Saudi undergraduates' perceptions about English academic listening difficulties and their strategies to cope with these diffic - Dissertation Example For English language schools in Iran however, the skills of listening are not highlighted even with the significant access available in terms of listening materials in classrooms, such as CDs and DVDs. As a result, students believed that their difficulties in understanding what they were listening to did not match their competence. According to Graham (2006) persistent issues in securing listening skills may cause passivity as well as a decreased motivation and decreased involvement in the lessons. In other words, the listening skill is not given enough attention in the classroom and is not given sufficient value in the global setting (Graham, 2006). Two challenges are seen in the listening skill. One challenge refers to the understanding of the skills process itself, and another is on selecting the medium by which the listening strategy can be transmitted in the classroom (Graham, 2006). The latter may inhibit students from improving their listening skills at the lower levels in the classroom setting. Studies on explicit listening instructions seem to be important in terms of the choice of language and in securing listening strategies because the challenge at the lower language levels is to understand the context of teaching the listening strategies. ... Nagle and Sanders (1986) have secured a listening comprehension-processing model indicating how the automatic and controlled processes help listeners secure meaning based on an oral input. Moreover, evidence based on a varied context and input from the Constructivist construction by Vandergrift (1999) suggests how listeners can gain meaning based on oral support. Various studies highlight the types of learning strategies which second language learners apply during listening (Carrier, 2003; Chang and read, 2006). Authors contend that good language learner applications must be used in order to help students who are struggling in their language learning. Hassan and colleagues (2005) carried out a review of ESL studies which highlighted learning strategies from various languages. Most of the studies indicated that learning strategies, include metacognitive (learning awareness), cognitive (mental learning), and socioaffective learning (individual and social interaction behaviour). Hassan, et.al., (2005) identified learning strategies as strategies which learners use often in order to improve their learning. Chang and Read (2007) assessed visual support in the process of foreign language learning processes, evaluating the effect of various kinds of listening support on low level proficiently learners in English learning in Taiwan. Four groups took part in their study with two groups assigned to listening supports and another one focused on pictures or a written background text. A third group was a recipient to listening input repetition and the fourth group was the control group, not having any listening support. A listening proficiency test followed, then a short

Video in the Newsroom Research Paper Example | Topics and Well Written Essays - 500 words

Video in the Newsroom - Research Paper Example The research bases most information in relation to New York Times practices. The New York Times newspaper initiated the use of videos in newsrooms following the dawn of digitalized technology and an aspect that propelled sales and profits. The company adapts to the practice and is able to reduce paperwork and unnecessary workforce (Hale c1). The company acquires an edge of efficiency as the editors find ease in making story scripts through the relay of videos. The company prints information promptly and reaches the buyer on time. Therefore, the editors post intense and accurate information online to reach the desired reader (Cornelissen, 78). The New York Times implements that the photographers should work closely to the live footage journalists who cast the videos on the occurrence of the events. The newspaper company establishes that the photographers should take still photos, and write scripts to remain informative to the occurrence of the events (Hale c1). New York Times’ photographers cast video scripts to support their still photos, and written scripts. Therefore, the use of videos in the newsrooms affect the photographers to present supported information to the editors who find ease in revising information, attaching relevant information to the chosen articles and promptly posting it online (Day 48). New York Times relays most of the news via websites to cover a wider area. The company saves unnecessary expenses through the criteria as transport cost reduce accordingly. The use of videos in newsrooms, and in online relay of information curbs the low-income earners from accessing information. The company notes that most of the readers to newspapers lack access to digital informative sources. The newspaper company seeks to reach all the readers accordingly but deviating to the online channels curbs some readers out of reach. Therefore, use of

Philosophy and Math Essay Example | Topics and Well Written Essays - 2000 words

Philosophy and Math - Essay Example The issues, data and assumptions raised by the mathematics are deeply analyzed by philosophy to create an articulate understanding. This combination of mathematics and philosophy provide a formidable foundation upon which to build in the course of career development and pursuit. Historically, the two have a strong link, as the logic is a strong branch of both the subjects. The work of logic in mathematics-symbolic logic- and the applied logic in philosophy provides a natural bridge with which the two subjects closely link. The other area of similarity is the fact that those undertake courses in either of two can pursue their career in a wide range of areas. Such fields of career pursuit include the computer science, journalism, financial and investment analysts, civil and diplomatic services among others. In addition, the similarity between mathematics and philosophy is what they present at the end of their argument, that is, conclusion. The major concerns are the being, existence and the truth of the presented solution. In order to establish the truth of the final solution and settlement of an argument, whether philosophical or mathematical, highly relies on the connectedness of the sense, reference and the ‘name’ of the phenomenon or the object. The sense and reference in the philosophy establish a relation between objects or names or names of the objects (Zalta 42). Philosophy for instance distinguishes the meaning of ‘a=b’ and ‘a=a’ in its conclusion. Philosophy establishes that ‘a=a’ is analytic in its nature while ‘a=b’ has a valuable extension, which must be explored, and the meaning established. Mathematics, on the other hand, does not go further to offer explanations, if any, about the cognitive meaning and val ue of the two statements. In a bid to reach a satisfactory statement   through computation, mathematics employs a

Joint Venture entry mode of Marks and Spencer in China Essay

Joint Venture entry mode of Marks and Spencer in China - Essay Example This research will begin with the statement that entering into a new market has been commonly accounted as one of the major challenges faced by companies seeking the benefits of internationalization market expansion. In its course to diversify in the global plethora, the company needs to deal with many barriers including cross-border trade regulations, cultural paradoxes and various other socio-economic factors that are deemed to influence business operations in the targeted host country. Contextually, entering into the market of China also posed considerable challenges to Marks & Spencer (M&S), which is a renowned British multinational retail chain. Critics have thereon argued that it is fundamentally owing to lack of market understanding and appropriate strategies adopted by companies to mark its failure in Asian countries like China. Several challenges and problems encompass the entry of M&S in the market of China. With the opening of their first outlet in the Chinese market, the company experienced a dip in its performance, which was accounted as considerably lower than the expected level in the Chinese market. The outlets opened by M&S, at the initial phases of its operations in the Mainland China, failed to satisfy the needs of the Chinese local customers owing to the company’s lacuna to identify customers’ preferences in the market and offer services accordingly. For instance, the M&S stores were unable to provide garments of smaller sizes, as preferred by the customers in China. (Wood, 2012). Reportedly, the supply chain of the company was also lacking its usual effectiveness, which further inhibited the reputation of the company in the Chinese market, at its introductory phase. Additionally, it was also known that the management of the retail chain was implementing its strategic experiences gained from its operations in Hong Kong, irrespective of the fact that the consumer buying behaviour are found to be considerably distinct in these two regions. This again depicts the lack of market survey of the company taking into account the tastes and preferences of customers in the host country (China Retail News, 2009). In addition, the decisions taken by the company for not collaborating with any of the local firms in China, i.e. ignoring the benefits of JV also barricaded the utmost efficiency of its strategies by restricting the cooperation of local firms to a certain extent. It was thus considered as a mistake made by M&S, which retarded its smooth entry in the Chinese market. However the company focused on concentrating on its size and range of services offered to the Chinese customers as its major Unique Selling Propositions (USPs). Subsequently, the first shop of the company was opened in the Mainland and was propounded to be one of the biggest shopping centres in Asia. Nonetheless, this decision of the company came as a surprise for many investors in the stock market, as opening of the store came just after the global economic turmoil that kept investors wondering regarding the finances of M&S. It has also been noted that competition level from the local marketers were observed to be quite h igh in this area, as the local retailers are more competent in serving the customers in the market providing products preferred by customers of lower age groups and lower income groups. On the contrary, it would be vital to mention that the products

The types of risks and risk management measures which are needed in a Essay - 1

The types of risks and risk management measures which are needed in a financial institution - Essay Example The paper tells that risk is always going to be present in a financial institution and the higher the risk, the higher the return that the institution gets. Basically, risk and return are related in the same direction. A minor example of this would be a bank charging different interest rates on different individuals who have opted for the same loan. The individual who has a relatively poor credit history is likely to receive a higher interest rate as there are chances of him/her not paying the loan bank. Therefore, there is a higher risk and the bank gets a higher return through the higher interest rate charged. However, risk needs to be managed and there can be several huge losses if the financial institution is not ready to deal with it. Risk management is a type of strategy which every financial institution needs to have at its core and there are several parts involved in this including monitoring the risks, measuring these risks and controlling risks. It is the analysis of risk m ixed with the element of quality risk controls. Risk management is required by banks and financial institutions as a safety measure to protect the institution from any major financial problems. The uncertainty and the potential inherent risks that come with the financial markets makes it important for most of the financial institutions and banks to use risk management. The risk management controls are one of the major determinants of the financial stability of a bank. Systematic risk is also known as diversifiable risk. Basically, this particular type of risk means the risk of the change of asset value associated with systematic factors. Therefore, the risk cannot be fully diversified. There are several subcategories under systematic risks and there are various ways in which the value of an asset can be affected. The determinant of the change in the value of the assets owned by the institution and it depends upon natural and economic factors including interest rates affecting the va lue of the assets, an increase in inflation might cause an increase in fuel prices which might affect transportation and stock value and changes in economic conditions which may cause several changes in the value of

Managing for the future Essay Example | Topics and Well Written Essays - 5000 words

Managing for the future - Essay Example During the time of the eminent economist, concepts such as ethical decision making, corporate social responsibility (CSR) were at the budding stage, hence, most of the economists including Milton Friedman ignored the role of social responsibility for business. Over the last few decades, the importance of ethics has been increased among corporate world. Modern research scholars such as Jain (2009) and Tett (2009) criticised the immaturity in terms of ethical understanding among business leaders as the root cause behind the global crisis. The concepts like corporate social responsibility (CSR) is pretty much new for companies in emerging market and as a result, many of them are still struggling with implementation of a holistic CSR framework which can ensure social well being and environment sustainability. Visser (2010) and Velasquez (2000) argued that concept of corporate governance is generally misunderstood by business leaders because they believe that corporate governance is all a bout structure which is not correct. In such context, modern research scholars such as Waller and Conaway (2011) pointed out three important future challenges for organizations such as, 1-deploying CSR activities in comprehensive manner in most of its business verticals, 2-taking the strong leadership role by expanding business in cross cultural and country manner and 3- managing crisis in efficient manner in order to ensure smooth flow of operation. Issaksson and Jorgensen (2010) argued that companies need to work closely with their stakeholders in order to balance the environment sustainability activities and profit pooling activities. According to these research scholars, the profit-greedy mentality of organizations cannot help it to achieve sustainable growth because modern organization has to consider the effect of its operation in external environment. Du, Bhattacharya and Sen (2010) defined CSR as a commitment from corporate to ensure well being of social members and help the society to achieve inclusive growth. It is evident from the above mentioned definition that it is responsibility of companies to improve social life of people by using internal resources and good practices. Waddock (2008) even argued that companies can enhance their brand image by engaging in CSR activities which can help the company to fulfil ethical, social and environmental requirements. The researcher has selected Starbucks in order to understand how the above mentioned three factors such as CSR, globalization and crisis and catastrophe management can impact business environment of the company. After analyzing the business environment and its previous challenges for Starbucks, the study will predict future business path for the company. At first, the researcher will try to understand the business matrix of Starbucks. Starbucks-Business Matrix and Capabilities Starbucks Corporation was founded by Jerry Baldwin, Gordon Bowker and Zev Siegl during the year 1971 and the company is headquartered Seattle, Washington, U.S (Starbucks, 2012). Till date, Starbucks has established more than

Gear and Equipment Responsibility Essay Example for Free

Gear and Equipment Responsibility Essay My gear and equipment is my own personal responsibility. My gear was issued to me with the intent of me to keep track of my gear and to make sure my gear is ready and accessible when need be. It is my own personal responsibility to make sure that at all times my gear is stored or secured in a safe place to make sure that nothing is either damaged, lost or stolen. It is my own personal responsibility to ensure that if anything were to happen to my gear that it should be reported immediately, such as damaged or malfunctioning gear or lost gear. If my gear is broken or malfunctioning it is my own personal responsibility to see to it that if I cannot personally fix my gear that through the chain of command someone is notified until a solution to the problem is found and the problem itself is fixed. If my gear is to ever be lost or stolen it is again my own personal responsibility to go through the chain of command notifying those appointed over me of my lost or stolen and gear. To lose my gear or have it stolen is something that should never happen though. Every Marine is responsible for his or her own gear and irresponsibly losing the gear that is issued to each individual Marine shows a lack of responsibility. If a Marines gear is stolen it shows poor judgment on the Marine that believed he or she could leave his or her gear laying out and lack of integrity on the part of the Marine that stole the other Marines gear. A Marine should show better judgment in where he or she stows his or her gear. A Marine is issued his or her own individual gear with the intent of it being his or her own personal gear but to leave his or her own gear lying about, wherever he or she so pleases is not in any way, shape or form showing good judgment but lack of responsibility issued to that Marine. Every Marine is responsible for his or her own personal gear and is a reflection of what to possibly expect from the irresponsible Marine. A Marine should always be aware of his or her own personal gear at all times and make sure that his or her own personal gear is properly stowed or secured in secure location to prevent such instances of theft or misplacing his or her own gear. Alternatively, each and every Marine should know that if he or she is not able to stow his or her gear in a safe or secure location than to entrust another Marine to watch over his or her gear until a place to secure his or her own gear is found to ensure that the Marines gear is safe from theft and no excuse for misplacing his or her own gear would be an acceptable answer when questioned as to how the Marines gear went missing or was stolen.

Coffee Shop Essay Example for Free

Coffee Shop Essay In this RFP the following definitions shall apply: â€Å"City† means the City of Surrey; â€Å"City Representative† has the meaning set out in section 1. 8; â€Å"City Website† means www. surrey. ca; â€Å"Closing Time† has the meaning set out in section 1. 3; â€Å"Contract† means a formal written contract between the City and a Preferred Proponent to undertake the Services, the preferred form of which is attached as Schedule B; â€Å"Evaluation Team† means the team appointed by the City; â€Å"Information Meeting† has the meaning set out in section 1. 4; â€Å"Preferred Proponent(s)† means the Proponent(s) selected by the Evaluation Team to enter into negotiations for a Contract; â€Å"Proponent† means an entity that submits a Proposal; â€Å"Proposal† means a proposal submitted in response to this RFP; â€Å"RFP† means this Request for Proposals; â€Å"Services† has the meaning set out in Schedule A; â€Å"Site† means the place or places where the Services are to be performed; and â€Å"Statement of Departures† means Schedule C-1 to the form of Proposal attached as Schedule C. Instructions To Proponents 2 Closing Time and Address for Proposal Delivery. Proposals must be received by the office of the: Kam Grewal, BBA, CMA Acting Purchasing AP Manager Address:6645 – 148 Street Surrey, BC V3S 3C7 on or before the following date and time (the â€Å"Closing Time†): Time: 3:00 pm local time Date: Monday, July 5, 2010 Submissions by fax [or email] will not be accepted. There will be no extension to the Closing Time for the submission of proposals. 3 Information Meeting An information meeting may be hosted by the City Representative to discuss the City’s requirements under this RFP (the â€Å"Information Meeting†). While attendance is at the discretion of Proponents, Proponents who do not attend will be deemed to have attended the Information Meeting and to have received all of the information given at the Information Meeting. At the time of issuance of this RFP a meeting has not been scheduled. 4 Number of Copies Proponents should submit the original plus 5 hard copies (6 in total) of their Proposals. 5 Late Proposals Proposals received after the Closing Time will not be accepted or considered. Delays caused by any delivery, courier or mail service(s) will not be grounds for an extension of the Closing Time. 7 Amendments to Proposals Proposals may be revised by written amendment, delivered to the location set out above, at any time before the Closing Time but not after. An amendment must be signed by an authorized signatory of the Proponent in the same manner as provided by section 2. 3. Fax amendments are permitted, but such fax may show only the change to the proposal price(s) and in no event disclose the actual proposal price(s). A Proponent bears all risk that the City’s fax equipment functions properly so as to facilitate timely delivery of any fax amendment. 8 Inquiries All inquiries related to this RFP should be directed in writing to the person named below (the â€Å"City Representative†). Information obtained from any person or source other than the City Representative may not be relied upon. Kam Grewal, BBA, CMA Acting Purchasing AP Manager Address:City of Surrey – Purchasing 6645 – 148 Street Surrey, BC V3S 3C7 Phone: 604-590-7274 Fax:604-599-0956 Email:[emailprotected] ca Inquiries should be made no later than 7 days before Closing Time. The City reserves the right not to respond to inquiries made within 7 days of the Closing Time. Inquiries and responses will be recorded and may be distributed to all Proponents at the discretion of the City. Proponents finding discrepancies or omissions in the Contract or RFP, or having doubts as to the meaning or intent of any provision, should immediately notify the City Representative. If the City determines that an amendment is required to this RFP, the City Representative will issue an addendum in accordance with section 1. 9. No oral conversation will affect or modify the terms of this RFP or may be relied upon by any Proponent. 9 Addenda If the City determines that an amendment is required to this RFP, the City will post a written addendum on the City website at www. surrey. ca (the City Website) and upon posting will be deemed to form part of this RFP. Upon submitting a Proposal, Proponents will be deemed to have received notice of all addenda that are posted on the City Website. 10 Examination of Contract Documents and Site. Proponents will be deemed to have carefully examined the RFP, including all attached Schedules, the Contract and the Site (as applicable) prior to preparing and submitting a Proposal with respect to any and all facts which may influence a Proposal. 11 Opening of Proposals The City intends to open Proposals in private but reserves the right to open Proposals in public at its sole discretion. 12 Status Inquiries All inquiries related to the status of this RFP, including whether or not a Contract has been awarded, should be directed to the City Website and not to the City Representative. Proposal Submission FORM AND contents 2 Package Proposals should be in a sealed package, marked on the outside with the Proponents name, title of the Project and reference number. 3 Form of Proposal Proponents should complete the form of Proposal attached as Schedule C, including Schedules C-1 to C-4. Proponents are encouraged to respond to the items listed in Schedules C-1 to C-4 in the order listed. Proponents are encouraged to use the forms provided and attach additional pages as necessary. 4 Signature. The legal name of the person or firm submitting the Proposal should be inserted in Schedule C. The Proposal should be signed by a person authorized to sign on behalf of the Proponent. 1 If the Proponent is a corporation then the full name of the corporation should be included, together with the names of authorized signatories. The Proposal should be executed by all of the authorized signatories or by one or more of them provided that a copy of the corporate resolution authorizing those persons to execute the Proposal on behalf of the corporation is submitted. 2 If the Proponent is a partnership or joint venture then the name of the partnership or joint venture and the name of each partner or joint venturer should be included, and each partner or joint venturer should sign personally (or, if one or more person(s) have signing authority for the partnership or joint venture, the partnership or joint venture should provide evidence to the satisfaction of the City that the person(s) signing have signing authority for the partnership or joint venture). If a partner or joint venturer is a corporation then such corporation should sign as indicated in subsection (a) above. 3 If the Proponent is an individual, including a sole proprietorship, the name of the individual should be included. evaluation and Selection 2 Evaluation Team The evaluation of Proposals will be undertaken on behalf of the City by the Evaluation Team. The Evaluation Team may consult with others including City staff members, third party consultants and references, as the Evaluation Team may in its discretion decide is required. The Evaluation Team will give a written recommendation for the selection of a Preferred Proponent or Preferred Proponents to the City. 3 Evaluation Criteria The Evaluation Team will compare and evaluate all Proposals to determine the Proponents strength and ability to provide the Services in order to determine the Proposal which is most advantageous to the City, using the following criteria: 1 Experience, Reputation and Resources The Evaluation Team will consider the Proponents responses to items in C-2 of Schedule C including supplementary information. 3 Technical The Evaluation Team will consider the Proponents responses to items (i) to (vii) in C-3 of Schedule C. 5 Financial The Evaluation Team will consider the Proponents response to C-4 of Schedule C. (d)Statement of Departures The Evaluation Team will consider the Proponents response to C-1 of Schedule C. The Evaluation Team will not be limited to the criteria referred to above, and the Evaluation Team may consider other criteria that the team identifies as relevant during the evaluation process. The Evaluation Team may apply the evaluation criteria on a comparative basis, evaluating the Proposals by comparing one Proponents Proposal to another Proponents Proposal. All criteria considered will be applied evenly and fairly to all Proposals. 4 Discrepancies in Proponents Financial Proposal If there are any obvious discrepancies, errors or omissions in C-4 of a Proposal (Proponents Financial Proposal), then the City shall be entitled to make obvious corrections, but only if, and to the extent, the corrections are apparent from the Proposal as submitted, and in particular: (a)if there is a discrepancy between a unit price and the extended total, then the unit prices shall be deemed to be correct, and corresponding corrections will be made to the extended totals; (b)if a unit price has been given but the corresponding extended total has been omitted, then the extended total will be calculated from the unit price and the estimated quantity; (c)if an extended total has been given but the corresponding unit price has been omitted, then the unit price will be calculated from the extended total and the estimated quantity. 6 Litigation In addition to any other provision of this RFP, the City may, in its absolute discretion, reject a Proposal if the Proponent, or any officer or director of the Proponent submitting the Proposal, is or has been engaged directly or indirectly in a legal action against the City, its elected or appointed officers, representatives or employees in relation to any matter. In determining whether or not to reject a Proposal under this section, the City will consider whether the litigation is likely to affect the Proponent’s ability to work with the City, its consultants and representatives and whether the City’s experience with the Proponent indicates that there is a risk the City will incur increased staff and legal costs in the administration of the Contract if it is awarded to the Proponent. 8 Additional Information The Evaluation Team may, at its discretion, request clarifications or additional information from a Proponent with respect to any Proposal, and the Evaluation Team may make such requests only to selected Proponents. The Evaluation Team may consider such clarifications or additional information in evaluating a Proposal. 10 Interviews The Evaluation Team may, at its discretion, may invite some or all of the Proponents to appear before the Evaluation Team to provide clarifications of their Proposals. In such event, the Evaluation Team will be entitled to consider the answers received in evaluating Proposals. 12 Multiple Preferred Proponents and Changes to the Proponent Team The City reserves the right and discretion to divide up the Services, either by scope, geographic area, or other basis as the City may decide, and to select one or more Preferred Proponents to enter into discussions with the City for one or more Contracts to perform a portion or portions of the Services. If the City exercises its discretion to divide up the Services, the City will do so reasonably having regard for the RFP and the basis of Proposals. Likewise, the City reserves the right to ask for changes in the member/s comprising the Proponent Team as it deems beneficial to the overall composition of the Team and without any obligation to justify its preference. In addition to any other provision of this RFP, Proposals may be evaluated on the basis of advantages and disadvantages to the City that might result or be achieved from the City dividing up the Services and entering into one or more Contracts with one or more Proponents. NOT APPLICABLE 14 Negotiation of Contract and Award If the City selects a Preferred Proponent, then it may: (a)enter into a Contract with the Preferred Proponent; or (b)enter into discussions with the Preferred Proponent to clarify any outstanding issues and attempt to finalize the terms of the Contract, including financial terms. If discussions are successful, the City and the Preferred Proponent will finalize the Contract; or. (c)if at any time the City reasonably forms the opinion that a mutually acceptable agreement is not likely to be reached within a reasonable time, give the Preferred Proponent written notice to terminate discussions, in which event the City may then either open discussions with another Proponent or terminate this RFP and retain or obtain the Services in some other manner. General Conditions 2 No City Obligation. This RFP is not a tender and does not commit the City in any way to select a Preferred Proponent, or to proceed to negotiations for a Contract, or to award any Contract, and the City reserves the complete right to at any time reject all Proposals, and to terminate this RFP process. 4 Proponent’s Expenses Proponents are solely responsible for their own expenses in preparing, and submitting Proposals, and for any meetings, negotiations or discussions with the City or its representatives and consultants, relating to or arising from this RFP. The City and its representatives, agents, consultants and advisors will not be liable to any Proponent for any claims, whether for costs, expenses, losses or damages, or loss of anticipated profits, or for any other matter whatsoever, incurred by the Proponent in preparing and submitting a Proposal, or participating in negotiations for a Contract, or other activity related to or arising out of this RFP. 6 No Contract. By submitting a Proposal and participating in the process as outlined in this RFP, Proponents expressly agree that no contract of any kind is formed under, or arises from, this RFP, prior to the signing of a formal written Contract. 7 Conflict of Interest A Proponent shall disclose in its Proposal any actual or potential conflicts of interest and existing business relationships it may have with the City, its elected or appointed officials or employees. The City may rely on such disclosure. 8 Solicitation of Council Members and City Staff. Proponents and their agents will not contact any member of the City Council or City staff with respect to this RFP, other than the City Representative named in section 1. 8, at any time prior to the award of a contract or the termination of this RFP. 10 Confidentiality All submissions become the property of the City and will not be returned to the Proponent. All submissions will be held in confidence by the City unless otherwise required by law. Proponents should be aware the City is a â€Å"public body† defined by and subject to the Freedom of Information and Protection of Privacy Act of British Columbia. Schedule A SERVICES 1. GENERAL This RFP is inviting potential Proponents to submit Proposals to act as the tenant and sole vendor for a proposed coffee shop (the â€Å"Coffee Shop†) at the Surrey City Centre Library (the â€Å"Library†), currently being constructed at 10350 University Drive, Surrey, BC. The successful Proponent will be responsible for the managing and daily service of the Coffee Shop located on the ground floor of the Library. There will be an opportunity for the successful Proponent to provide catering for meetings and other similar functions, although it is not mandatory for the client to use the Coffee Shop for catering. 2. BACKGROUND As part of the Surrey City Centre plan review and update, the Surrey City Council has approved the construction of a new 5-level library. While the project is currently in the design phase, construction has commenced due to the fast track nature of the project. Currently excavation is complete on the basement and the ground floor slab and reinforcement is being set. It will be poured by Friday June 18, 2010. The Library is conveniently located near bus loops, transit and SkyTrain. The Library will eventually become part of a plaza where community celebrations will take place. Once completed it will be Surrey’s largest library at 75,000 square feet. The City’s new Library will be a unique state of the art environmentally friendly landmark that provides access to the broadest range of information, learning opportunities, and diverse cultural experiences. The new Library will be: The centrepiece for Surrey’s City Centre; adorned in architectural excellence for the 21st century, the library will contribute to the vitality of the city and put Surrey in a class with other great cities. A foundation for the City’s future success by boosting economic and cultural activity and attracting visitors from all parts of the country. A source of pride and a great public space, where the community gathers to celebrate, reflect, connect and share information, knowledge and culture. 3. PROJECT GOAL The goal of this project is to identify a coffee and related food services operator for the Library. 4. THE COFFEE SHOP An exciting opportunity exists on the ground floor to operate a commercial Coffee Shop. The Coffee Shop is located in a high traffic area, between the two main entrances, elevators and new book display. The licence awarded to the successful Proponent would also include a seating area where customers can sit. The consumption of food within the Library itself is allowed. There are several meeting rooms and a large room which can host community events, along with teen areas, study areas, children’s areas and much more. It is also expected that the Library will be utilised by SFU students on a constant basis. 5. LIBRARY HOURS Library opening hours are: Monday to Friday9:30am – 9:00pm Saturday10:00am – 5:00pm Sunday 1:00pm – 5:00pm 6.2009 PEDESTRIAN TRAFFIC The following figures represent the estimated visits at all the public library branches for 2009. |BRANCH |VISITORS | |Cloverdale | 163,605 | |Fleetwood | 262,717 | |Guildford | 582,361 | |Newton | 357,045 | |Ocean Park | 193,167 | |Port Kells | 7,410 | |Semiahmoo | 305,162 | |Strawberry Hill | 357,166 | |Whalley | 276,406 | It is estimated that traffic for the Library will mirror that of the Whalley branch, and is expected to increase due to the development taking place in the area. 7. EXPECTATIONS OF THE SUCCESSFUL PROPONENT. The City would require the successful Proponent to offer a variety of food and beverage choices that include healthy and nutritious options for all customers, many of whom are school-aged children. The Surrey Public Library Board has approved the policy (policy 3. 8 Healthy Food Options) that the Library provides a healthy food option for programs, special events and contests. No alcohol is to be allowed. There is to be no food smell generation if preparation is required and there is to be no electric grinding (e. g. coffee beans) on the Coffee Shop floor due to noise levels. All grinding can be done in the storage room, manually or prior to Library opening hours. Loading of stock for the Coffee Shop can be done via the west entrance of the ground floor or via the elevators from the underground parkade. Persons meeting in the conference rooms are permitted to cater from external companies although there is the opportunity for the successful Proponent to cater these functions if prior arrangements are made between the two parties. The opening date for the Coffee Shop is yet to be determined, however, it is expected to be up and running by early Summer of 2011. The Coffee Shop is expected to be operational during Library opening hours. Opening times for the Coffee Shop are to be from the Library’s opening time to half an hour prior to the Library’s closing. The successful Proponent would be able to enter the building half an hour prior to the Library’s opening time. The successful Proponent is to supply any equipment needed for the Coffee Shop to function including, but not limited to, coffee machines, refrigerator, signage, counter cooler case, etc. All business licences and food permits are the responsibility of the Proponent. 8. SUCCESSFUL PROPONENT’S WORK RESPONSIBILITIES a) Should there be any structural changes which have been reviewed and approved by the City prior to the execution of such changes, the tenant is to supply all tenant improvement plans signed and sealed by professional engineers or architects to be approved by the City. b) The tenant is to provide evidence of insurance for the City`s approval as specified in the License Agreement (refer to Schedule B – License Agreement). c) The tenant is expected to supply all equipment needed to sufficiently run the coffee shop including, but not limited to, coffee machines and espresso equipment, undercounter refrigerators, shelving in the storage room, display cooler case, paper towel dispenser, milk cooler, microwave, cash register and trash bins. 9. COLD DRINK BEVERAGES The City has an agreement with The Pepsi Bottling Group (Canada), Co. (â€Å"Pepsi†), for the exclusive supply of cold drink beverages for all City facilities, including the Library. Therefore, the successful Proponent is to work directly with Pepsi for the supply of cold drink beverages, including: †¢ Carbonated soft drinks †¢ Teas other than fresh brewed †¢ Juices. †¢ Juice-based products †¢ Lemonade †¢ Isotonics †¢ Sports drinks †¢ Energy drinks †¢ Bottled water Excluded Beverages: †¢ Milk †¢ Flavoured milk †¢ Cold coffee †¢ Branded or unbranded fresh brewed coffee or tea †¢ Hot chocolate †¢ Unbranded fresh squeezed juices †¢ Smoothies and milkshakes The agreement with Pepsi is to expire in 2011. 10. SNACK FOODS The City has an agreement with Ryan Company Ltd. (â€Å"Ryan Vending†), for the exclusive supply of a healthier snack foods program and vending services for all City facilities, including the Library. Therefore, the successful Proponent is to work directly with Ryan Vending for the supply of snack foods. 11. CITY’ RESPONSIBILITIES The City is to complete the Licence Area, as set out in Schedule B, in a good and workmanlike manner, at the City’s cost, using new materials and to the following extent: a) Interior wall taped and sanded drywall to code, painted white; b) Ceiling is to be painted concrete; c) The floor will be finished with a rubber covering; d) Counter tops on the horizontal front counter is to be a white laminate; e) The vertical section of the counters shall be an East Coast maple; f) The counter at the back of the shop floor containing the sink, and the backsplash, is to be white Corian; g) There will be an apple ply edging where the vertical edge of the counters meets the horizontal at the front counter; h) There is to be recessed lighting fixtures above the back counter, surface mounted fixture on painted concrete ceiling to light signage and menu and pendant fixtures at the front counter; i) All signage, including Menu board, must be approved by the City and the design team (Bing Thom Architects). The preferred signage for the Coffee Shop is electric flat screens, however, the design team is open to ideas regarding electronic signage from Proponents. This will have no impact on the evaluation of the Proponent’ Proposal; j) The City will provide the main sink and handwash sink located in the back counter; k) A 25mm domestic hot and cold water line with backflow preventor will be installed for refrigerator and coffee machine; and l) A 20mm domestic hot and cold water pipe and a 40mm sanitary drain will be installed for each of the two (2) sinks. term The Proponent will provide the Services set out in this Schedule A and A-1 for a term not to exceed five years (including renewal) commencing in the early Summer of 2011 (the Term). Schedule A-1 DIAGRAMS [pic] Proposed coffee shop layout plan [pic] Proposed coffee shop elevation view [pic] Proposed Coffee Shop Section [pic] Proposed Coffee Shop overall plan [pic] Proposed Coffee Shop seating area Schedule B CONTRACT (DRAFT) [pic] LICENSE AGREEMENT Title:SURREY CITY CENTRE LIBRARY COFFEE SHOP Reference No. :1220-30-22-10 THIS LICENSE AGREEMENT dated this ____________ day of __________ 2010. BETWEEN: CITY OF SURREY 14245 – 56 Avenue Surrey, B. C. V3X 3A2 (the Licensor) OF THE FIRST PART AND:   (the Licensee). OF THE SECOND PART WHEREAS: A. The Licensor is the owner of those lands and premises located at 10350 University Blvd within the City of Surrey, Province of British Columbia, and more particularly known and described as: Parcel Identifier: 028-179-951 Parcel 1 Section 27 Block 5 N Range 2 West New Westminster District Plan BCP44240 (the Lands) on which is located theCity Centre Library. B. The Licensee wishes to obtain from the Licensor a licence to use those portions of the building located on the Lands as follows: 1. Area A Concession and Storage Room (Licence Area A) which area is approximately 141. 9 sq. ft. and shown on the plan attached hereto as Schedule A; and 2. Area B Seating Area (Licence Area B) as shown on the plan attached hereto as Schedule A (collectively the Licence Area) C. The Licensee intends to use the Licence Area for the retail sale of coffee, tea, and other products as outlined in this Licence. D. Licence Area A shall be for the exclusive use of the Licensee, and Licence Area B shall be for the non-exclusive use of the Licensee. NOW THEREFORE in consideration of the sum of ONE DOLLAR paid by each of the parties to each other and other good and valuable consideration (the receipt and sufficiency of which each party hereby acknowledges) the parties hereby covenant and agree as follows: 1. In this License the parties agree that: (a)Additional Rental means the moneys payable hereunder, together with all other sums of money, whether or not designated as Additional Rental, to be paid by the Licensee whether to the Licensor or otherwise under this License save and except Minimum Rental and Percentage Rental; (b)Commencement Date of Term means ______________, 2011; (c)Gross Revenue means the entire amount of the sales price, whether wholesale or retail, for cash, credit, or otherwise of all sales of merchandise and services, and all other receipts and receivables whatsoever of all business conducted at, in, upon, or from the Licence Area, including, without limiting the generality of the foregoing, receipts and receivables in respect of any sale effected by the Licensee using any computer, electronic, telephone, internet, or like system, where the Product is sent via the Licence. Area or by the Licensee directly to a consumer, orders taken at or received at the Licence Area, although such orders may be filled elsewhere by the Licensee, deposits not refunded to customers, the selling price of gift certificates, charges to customers in the nature of interest or carrying or financing charges, sums, and credits received, and settlement of claims for loss of or damage to goods. No deductions shall be allowed for uncollected or uncollectible credit accounts. There shall not be included in Gross Revenue: (i)any sums shown separately from the price and collected and paid out for any direct retail sales tax imposed by any duly constituted governmental authority; (ii)the exchange of goods and merchandise between the stores of the Licensee, if any, where such exchange of goods or merchandise is made solely for the convenient operation of the business of the Licensee and not for the purpose of consummating a sale which has previously been made or agreed to be made at, in, from, or upon the Licence Area or for the purpose of depriving the Licensor of the benefit of a sale which otherwise would be made at, in, from, or upon the Licence Area; (iii)the Licensee’s original cost of returns to suppliers or to manufacturers; (iv)the amount of merchandise sold when such merchandise is thereafter returned by the purchaser and accepted by the Licensee, and a complete credit is given to the purchaser; and (v)the selling price of gift or merchandise certificates or coupons sold other than from the Licence Area, provided that such gift or merchandise certificates or coupons shall be included in the calculation of Gross Revenue at the time of their redemption. (vi)Each sale upon an installment or credit basis shall be treated as a sale for the full price in the month in which that sale is made regardless of the time when the Licensee receives payment, whether full or partial, from its customer; (d)Lands means as hereinbefore defined in recital A; (e)Licence Year means a 12-month period commencing with the first day of January in one calendar year and ending on the last day of December of that year, providing that the first Licence Year shall commence on the Commencement Date of Term and end on the last day of December next following and the last Licence Year shall end on the last day of the Term and commence on the first day of January preceding that date; (f)Licence Area means Licence Area A and Licence Area B; (g)Licence Area A means those portions of the building located on the Lands shown highlighted in pink and marked as Area A. Concession and Area A Storage room, which area is approximately 141. 9 sq. ft. ; (h)Licence Area B means those portions of the building located on the Lands shown highlighted in yellow and marked as Area B. Seating Area; (i)Minimum Rental means the minimum annual rental reserved hereunder payable by the Licensee; (j)Product means coffee, tea, soft drinks, juices, pastries, sandwiches and related items as specified in the menu attached as Schedule C which menu may be amended from time to time with the agreement of the Licensor and the Licensee; (k)Percentage Rental means the percentage rental reserved hereunder and payable by the Licensee; (l)Real Property Taxes means all taxes, rates and assessments, whether general or specially levied or assessed for municipal, school, general or any other purposes by any lawful government authority payable by the Landlord in respect of the Demised Premises and shall include any other taxes payable by the Landlord which in the future are levied in lieu of or in addition to such taxes, rates and assessments the whole as finally determined for each calendar year as a result of assessment, appeal or judicial review, and shall include any legal fees, or appraisers fees incurred by the Landlord in respect of such final determination. (m)Rental means Additional Rental, Percentage Rental, if any, and Minimum Rental; and (n)Term means _______ (__) years commencing on the Commencement Date of the Term and ending on the _____ day of ________, 20__. 2. The Licensor hereby grants to the Licensee a licence to occupy and use Licence Area A on an exclusive basis and Licence Area B on a non-exclusive basis commencing on the Commencement Date of Term for Term unless sooner terminated as hereinafter provided. 3. To use Licence Area for the retail sale of the Products and to use Licence Area B to provide a seating area for the benefit of visitors to and staff of the City Centre Library and for no other purpose during the Term. 4. The Licensor covenants and agrees to pay to the Licensor, in lawful money of Canada, on the days and at the times hereinafter specified, Rental which shall include the aggregate of the sums required to be paid: (a)Minimum Rental and Percentage Rental: The Tenant shall pay the greater of: (i)Minimum Rental of $________ per month commencing on the Commencement Date of Term and the 1st day of each and every month thereafter throughout the Term; or (ii)the Percentage Rental which shall be ___% of Gross Revenue per Licence Year; (b). Additional Rental Any sums, costs, expenses or other amounts from time to time due and payable by the Tenant to the Landlord or to any third persons under the provisions of this Licence, including, without limitation, all amounts payable under Section 4. 3 and Article 5 and all amounts payable by the Tenant by way of indemnity, whether expressed in this Licence to be Basic Rent or Additional Rent or not shall be treated and deemed to be Rent and the Lan.

Oligopoly Market in UK Supermarket Industry

Oligopoly Market in UK Supermarket Industry Oligopoly Market in UK Supermarket Industry In this essay I will search the information about supermarket industry in the UK, focus on the characteristic of oligopoly market and try to find out the effect of this market structure to customers, analysis its advantages and disadvantages. According to my search, there are a five big supermarket companies in the UK: Tesco, Asda, J Sainsbury, Safeway and Morrisons. We can see in the following diagram, in 2003 and 2008, Tesco is throughout having the most market share and the Asde .J Sainsbury Safeway and Morrisons always competitive with each other, having a large market share. So, the supermarket industry in UK is oligopoly market. The reason why the UK supermarket industry is oligopoly market for the follow reason: 1. Supply in the industry must be concentrated in the hands of relatively few firms. (Anderton A. (2004:322). In the UK, these supermarkets consider how much to supply and maybe make evaluate that how much their competitors will supply so that to insure the supply 2. Non-price competition (Anderton A. (2004:322). In UK supermarkets, in order to expand their market share, non-price competition has become a marketing strategy, As Revision Guru (2010); the supermarket will use different kinds of promotion or some way to encourage the consumer to buy more. 3. Collusion. Collusion is often a feature of the behaviour of firms in oligopolistic markets where it is not illegal. (Anderton A. (2004:323) 4. Many markets are dominated by brands. (Anderton A. (2004:323) .Every firm may produce the nearly the same good, in order to discriminate their good, many firms will make it as a brand to sell higher price. 5. Price rigidity. Price in oligopoly market changes far less than perfect competition in market. (Anderton A. (2004:323) The above is the characteristic of the oligopoly marker, and UK supermarket industry is match its characteristic, therefore, I draw a conclusion; UK supermarket industry is oligopoly market. In the follow section, will focus on discussion the advantages and disadvantages of this market structure for the consumers. In the oligopoly market, consumer can benefit from many ways. First of all, in the oligopoly market, consumers may have a better service a. For example in UK supermarkets, it is not only Tesco, but also Asda, J Sainsbury, SafewayThat means, consumers have choice to where they buy. As I mention above, oligopoly market is non-price competition, all the supermarkets sell almost the same good in the same price, in order to earn more money, the compete supermarkets may use different way to expand their market share, changing their marketing mixà ¯Ã‚ ¼Ã…’such as Internet shopping for customers, Store Loyalty cards, Innovative use of technology for shoppers including self-scanning machines and so on (Revision Guru (2010), by changing in four area: product, promotion, place, pricing so that can promote the development of service of the supermarkets. In this process, consumers can enjoy a better and convince shopping service. Secondly, in the oligopoly market, consumers have more opportunity to buy a new and advanced produce. According to Buzzle (2010), in the oligopoly market, because of the strong enterprise strength and a lot of funds, these companies will invest much money in produce research so that to create new produce, also, companies want to be more competitive, they must have something new to attract consumers. Therefore, consumers can benefit from this new produce to improve their living. Thirdly, in the oligopoly market, the price is more stable, consumers can accepted it. In the oligopoly market, the price change very little, because if one company change price, other company must be affected and have some reaction, For instance, according to Worve (2010), Tesco if reduce 3% to 25% of each good, this will increasing its revenue and even increase its market share expand 12% in eight weeks. Besides, in the oligopoly market, other companies will also reduce their price, therefore, the consumers may benefit from this price war, saving  £150 a year. The reason why the supermarket will decrease their price is form the kinked demand curve theory, the supermarkets activated is accepting the Kinked Demand Curve. If one firm reduces their price, other firms will follow to reduce so that to keep their market share so in the oligopoly market, customers may also benefit too, the customers not only had a stable price for goods, but also can buy a cheaper goods. However, oligopoly market also has it advantages for consumers. Firstly, high barrier to entry the oligopoly market also is a disadvantage to consumers. Because there are a few companies in oligopoly market, such the UK supermarket, there only a big firms competed in the market, the little companies do no have enough power to completive with that big one, therefore, some little companies may be quitted the market ,or some even can not entry the market. Mail Online (2010). The little supermarkets quit means consumers have less choice; it is a disadvantage for consumers. Secondly, collusion between the compete supermarkets; it is also cause by the first disadvantage. As I mention before, the collusion is the characteristic of oligopoly, the firms want to keep their revenue so that to increase their price, between firms, they may collude with each other illegally. Consumers are forced to buy the goods in a higher price; Telegraphà ¯Ã‚ ¼Ã‹â€ 2010à ¯Ã‚ ¼Ã‚ °said that Any exchange of information between retailers is bound to distort prices at the expense of consumers , thus it can be seen that this is a disadvantage for customers. In sum up, the research I have study about UK supermarket industry I find that UK supermarket industry is an oligopoly market, and customers can benefit a lot. As I mention before, consumers can not only have a better service, but also be provided acceptable price of good. Besides, for customers, the most important thing is the quality and price of goods, in the oligopoly markets, because of completion, every company will provide a new and advanced produce for customers. However, in this oligopoly market, because of the characteristic of oligopoly market, high barrier to entry the market and the illegally collusion, customers may lose chance to meet other new supermarket in the market, that means customers have fewer choice and more easily to be forced to buy good in higher price.In order to make UK supermarket better, government should check whether companies have colluded with each other, to protect the consumers benefit. REFERENCES: Anderton A. (2004) Economics (3rd ed.) Ormskirk, Causeway Press Ltd. (Accessed 5th January 2010) Buzzle (2010) [On line] The Benefits of Oligopoly Available at: http://www.buzzle.com/editorials/10-27-2002-29003.asp (Accessed 5th January 2010) Mail Online (2010) [On line] Stores Sold Supermarket Sweep Create Choice Shoppers Available at:http://www.dailymail.co.uk/news/article-490986/Stores-sold-supermarket-sweep-create-choice-shoppers.html (Accessed 5th January 2010) Revision Guru (2010) [On line] Oligopoly Available at: http://www.revisionguru.co.uk/economics/oligopoly.htm ) (Accessed 5th January 2010) Single Marketing Ltd (2010) [On line] UK Market Available at: http://www.singlemarketing.co.uk/uk_market.html (Accessed 5th January 2010) Teagasc (2010) [On line], Retailer Dominance and the Impact on Farmers: from Growing to Sustenance Available at: http://www.teagasc.ie/publications/2004/20040226/paper2.asp (Accessed 5th January 2010) Telegraph (2010) [On line], UK Supermarkets Fixed Milk and Cheese Price Available at: Tutore2U(2010) [On line] Kinked Demand Curve Under Oligopoly Available at: http://tutor2u.net/economics/content/topics/monopoly/kinked_demand.htm (Accessed 5th January 2010) Worve (2010) [On line] Oligopolies in Supermarkets Essay Available at: http://www.wovre.com/revision/oligopolies-in-supermarkets-essay/ (Accessed 5th January 2010)

Ronald Schaffers America In The Great War Essay -- Ronald Schaffer Am

Ronald Schaffer's America In The Great War   Ã‚  Ã‚  Ã‚  Ã‚  Ronald Schaffer’s America in the Great War gives new insights into World War I. The book gave historical accounts about the war that other books negated to included. The thesis that Schaffer tries to prove that the Great War was the start of the American welfare state and the beginning of â€Å"big† government. America in the Great War was structured in chronological order of the war, from America’s mobilization to the actual fighting. What the book did not include is a detail account of the fighting. This was the biggest draw back in a otherwise well thought book.   Ã‚  Ã‚  Ã‚  Ã‚  The book begins with the mobilization of the United State’s industry and man power. The first two chapters dealt with how the Federal Government shaped the view of the war in America’s minds. The methods that the Federal Government used varied from propaganda to coercion. The point behind the Federal Government’s involvement in propaganda was to rally the country to fight the war. The first step in shaping the people’s mind was to get the labor and industry to work together. The Federal Government established committees and teams to persuade the minds of the United States. One of these committees were the Committee on Public Information established in April 13 1917 by order on the President of the United States. The committee was led by George Creel, former social reformer. He had great power in what the United States saw and heard for the next few years. His first order was to manage American minds without directly using propaganda and censorship. Other nations fighting the war practiced wide spread censorship of all war related material. Creel realized that this would not work in the United States, instead he flooded Americans with news. The news released to the public was in such large numbers and in such great detail that Americans could not understand all of it. The Committee on Public Information also produced films. The films were designed to rally Americans behind the war effort. The films were nothing else but propaganda, but Creel designed the films to not come across as propaganda. The committee was very successful in hiding the fact that they were engaging in propaganda. Many Americans believed in the films and supported the war e... ...overnment helped veterans in such a large scale. The treatment of the shell shock veterans would eventually lead to one of the largest welfare programs, the Veterans administration.   Ã‚  Ã‚  Ã‚  Ã‚  In addition Schaffer changed my views about the American home front. I was not aware about the extent of propaganda involved shaping the thinking in the United States. I did not know that the Federal Government suppressed dissent to the level that it employed. Such use of propaganda and suppression in the United States would be impossible and such a government using that would be called a Fascist government.   Ã‚  Ã‚  Ã‚  Ã‚  In conclusion, I liked the book due the fact that Schaffer proved his thesis, the Great War gave rise to the American welfare state. I believe that Schaffer proved his thesis with clear and concrete evidence. I enjoyed how Schaffer shed new light on the Great War. Many historical accounts only deal with the actual fighting and not the behind the scenes action that Schaffer writes about. Schaffer’s account about women and blacks during the war gave new levels. History has forgotten the contributions that these groups gave to the war.

Essay --

Two years ago, I started getting frequent headaches and dizziness. I was extremely stubborn and did not want to see my primary physician concerning my change in condition. I was checking my blood pressure more frequently and couldn’t help to notice the increase in pressure. I monitored my vitals for about six months. I tried everything I possibly could to change my lifestyle to aid in the relief. I started to run more and make healthier food choices. Nothing worked! My pressures maintained high. I was reluctant to visit the doctor. I personally did not want to be dependent on medications. After a long discussion with my spouse I realized I was being selfish. I scheduled an office visit the following week for a professional opinion. From the time I entered and left the primary care office, I was treated with dignity and respect. I felt extremely comfortable. I was happy I decided to commit myself. It was a big step to admit I wasn’t healthy. The nursing staff was completely empathic and concerned for me and my family. I could see I was the only thing that mattered while they were i... Essay -- Two years ago, I started getting frequent headaches and dizziness. I was extremely stubborn and did not want to see my primary physician concerning my change in condition. I was checking my blood pressure more frequently and couldn’t help to notice the increase in pressure. I monitored my vitals for about six months. I tried everything I possibly could to change my lifestyle to aid in the relief. I started to run more and make healthier food choices. Nothing worked! My pressures maintained high. I was reluctant to visit the doctor. I personally did not want to be dependent on medications. After a long discussion with my spouse I realized I was being selfish. I scheduled an office visit the following week for a professional opinion. From the time I entered and left the primary care office, I was treated with dignity and respect. I felt extremely comfortable. I was happy I decided to commit myself. It was a big step to admit I wasn’t healthy. The nursing staff was completely empathic and concerned for me and my family. I could see I was the only thing that mattered while they were i...

Afraid to know the truth Essay -- essays research papers fc

Afraid to Know the Truth   Ã‚  Ã‚  Ã‚  Ã‚   AIDS is an extraordinary kind of crisis that is both an emergency and a long-term development issue. Despite increased funding, political commitment and progress in expanding treatment, the AIDS epidemic continues to outpace the global response. No region of the world has been spared. The epidemic remains extremely dynamic, growing and changing in character as the virus exploits new opportunities for transmission. The UNAIDS/WHO global overview of the AIDS/HIV epidemic has reported in the year 2003, almost five million people became newly infected with HIV, the greatest number in any one year since the beginning of the epidemic. At the global level, the number of people living with HIV continues to grow. In the year 2001 the number increased from 35 million to 38 million in 2003. In the same year almost 3 million people have died of AIDS; over 20 million have died since the first cases of AIDS were identified in 1981 (5). According to the Center of Disease Control and Prevention estimate that 850,000 to 950,000 people are living with HIV/AIDS in the United States one quarter of which are unaware of their infection (par.6).Based on these statistics it is an obvious fact that this is a growing problem which continues to get worse year after year. The AIDS epidemic has been established as not only a national problem, but just as well as an international problem. In 2003, young people (15-24) accounted for nearly half of all new infections of HIV worldwide; more than 6,000 became infected everyday (par.3). I become very dismayed to find out that the majority of people that are infected with this terminal disease are at the ages where many at this age go out in the world to make a life for themselves. But, because of lack of responsible actions they must live with this disease for the remainder of their lives. Even though there are many types of treatment for those infected with this disease and with treat ment AIDS/HIV patients can live a lot longer than 20 years ago when the first cases of AIDS were identified, the fact still remains it is an incurable disease. The most vital factor that will have to come into play to make a significant difference in slowing down or possibly stopping this epidemic is prevention. But, despite the seriousness of this problem there are many factors that come into play that... ... the reality of the truth appropriately. A CDC( center of disease control and prevention) study interviewed 2370 HIV-negative or untested people, 25% of those who were tested and 23% of those who delayed testing said the fear of a positive result was the main reason why they delayed testing (par.2). The biggest step in stopping this epidemic before it continues to have an even bigger impact on the world is obviously prevention. People need to become more aware of the risks and must become more responsible in protecting themselves. A crucial factor that would help the prevention of this epidemic even more is getting tested. I must quote the infamous lines that are said in ‘getting tested’ commercials that are frequently aired on MTV and VH1, â€Å"Knowing is Beautiful†. WORKS CITED 1.) UNAIDS/WHO 2004 Global Report on AIDS epidemic   Ã‚  Ã‚  Ã‚  Ã‚  2.) Fleming, P.L. et al. HIV Prevalence in the United States, 2000. 9th Conference on Retroviruses and Opportunistic Infections, Seattle, Wash., Feb. 24-28, 2002. Abstract 11. 3.) http://www.amfar.org/cgi-bin/iowa/news/record.html?record=25 4.) www.forrealease.com 5.) http://www.critpath.org/wtp/fastfax/ff210.htm Afraid to know the truth Essay -- essays research papers fc Afraid to Know the Truth   Ã‚  Ã‚  Ã‚  Ã‚   AIDS is an extraordinary kind of crisis that is both an emergency and a long-term development issue. Despite increased funding, political commitment and progress in expanding treatment, the AIDS epidemic continues to outpace the global response. No region of the world has been spared. The epidemic remains extremely dynamic, growing and changing in character as the virus exploits new opportunities for transmission. The UNAIDS/WHO global overview of the AIDS/HIV epidemic has reported in the year 2003, almost five million people became newly infected with HIV, the greatest number in any one year since the beginning of the epidemic. At the global level, the number of people living with HIV continues to grow. In the year 2001 the number increased from 35 million to 38 million in 2003. In the same year almost 3 million people have died of AIDS; over 20 million have died since the first cases of AIDS were identified in 1981 (5). According to the Center of Disease Control and Prevention estimate that 850,000 to 950,000 people are living with HIV/AIDS in the United States one quarter of which are unaware of their infection (par.6).Based on these statistics it is an obvious fact that this is a growing problem which continues to get worse year after year. The AIDS epidemic has been established as not only a national problem, but just as well as an international problem. In 2003, young people (15-24) accounted for nearly half of all new infections of HIV worldwide; more than 6,000 became infected everyday (par.3). I become very dismayed to find out that the majority of people that are infected with this terminal disease are at the ages where many at this age go out in the world to make a life for themselves. But, because of lack of responsible actions they must live with this disease for the remainder of their lives. Even though there are many types of treatment for those infected with this disease and with treat ment AIDS/HIV patients can live a lot longer than 20 years ago when the first cases of AIDS were identified, the fact still remains it is an incurable disease. The most vital factor that will have to come into play to make a significant difference in slowing down or possibly stopping this epidemic is prevention. But, despite the seriousness of this problem there are many factors that come into play that... ... the reality of the truth appropriately. A CDC( center of disease control and prevention) study interviewed 2370 HIV-negative or untested people, 25% of those who were tested and 23% of those who delayed testing said the fear of a positive result was the main reason why they delayed testing (par.2). The biggest step in stopping this epidemic before it continues to have an even bigger impact on the world is obviously prevention. People need to become more aware of the risks and must become more responsible in protecting themselves. A crucial factor that would help the prevention of this epidemic even more is getting tested. I must quote the infamous lines that are said in ‘getting tested’ commercials that are frequently aired on MTV and VH1, â€Å"Knowing is Beautiful†. WORKS CITED 1.) UNAIDS/WHO 2004 Global Report on AIDS epidemic   Ã‚  Ã‚  Ã‚  Ã‚  2.) Fleming, P.L. et al. HIV Prevalence in the United States, 2000. 9th Conference on Retroviruses and Opportunistic Infections, Seattle, Wash., Feb. 24-28, 2002. Abstract 11. 3.) http://www.amfar.org/cgi-bin/iowa/news/record.html?record=25 4.) www.forrealease.com 5.) http://www.critpath.org/wtp/fastfax/ff210.htm

Housing Finance

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