The Ongoing Struggle For A Family Essays - Sexual Orientation, LGBT

The Ongoing Struggle For A Family The Ongoing Struggle for a Family ?The most important thing in a family is that all the people in it love each other.? This excerpt is from a children's book, written by Leslea Newman, Called ?Heather Has Two Mommies.? This story is intended to show kids that not everyone's family is the same. Many reasons are given to dispute gay and lesbian parenting but all founded on some of the archaic beliefs that Hitler used to kill homosexuals during W.W.II, fear and prejudice! Although having children and being parents seems like a basic human right or choice, many people believe that the government should have the authority to discriminate who can are cannot have children, regardless of their parenting skills. Some say that it is unnatural for gay and lesbians to have children because they have to go to such extremes to have them (Oppos ..199). It is kind of ironic because it has become mainstream for heterosexual couples that are determined infertile to use artificial insemination, adoption, and even invitro-fertilization, and when one of these procedures is successful the couple is said to have had a miracle, while the gay or lesbian couple is said to be fanatical. Lesbian couples may use sperm banks, or they may become coparents with a gay couple that also wishes to have children. In these cases the child has 4 loving and nurturing parents instead of the standard 2. Noom 2 Another opposing view is that all gays and lesbians are sexually promiscuous, therefore have HIV/AIDS, and their relationships are not stable enough to have children (Oppos..199). ?Lesbians and gays love and form deep and lasting commitments just like heterosexuals. To claim otherwise is to declare that lesbians and gays are somehow not human and ignore the reality of their lives,? (New Civil..125) Laws and social views seem be conflicted on what they want because they say gay/lesbian relationships are not stable, but than deny them the right to marry, therefore through laws and legislation the are not promoting the behavior that they seem to require. HIV/AIDS is a horrible disease and truthfully is a major concern in the gay community, but it is because of the stereotypes, lack of education, and knowledge about the disease itself that this disease was able to attack many gay males. Although HIV/AIDS is a concern for people in general the number of lesbian women with it is almost non-existent. Does this mean that heterosexual couples that have HIV/AIDS are not having children? No, countless articles can be found about drug using prostitutes that give birth to a baby with HIV and still retains custody. While in 1997, a women named Sharon Bottoms loses her child in Virginia to her mother for being gay, ?active lesbianism practiced in the home may pose a burden upon the child by reason of ?Social Condemnation' attached to such an arrangement? the state Supreme Court stated (issues..36). All hope is not lost though, in June of 1997 an Ohio appeals court upheld that, ?sexual orientation alone, has no relevance to a decision concerning the allocation of parental rights and responsibilities,? (Issues..37) Many people believe that gays and lesbians shouldn't have kids because the child will be molested and/or be mal adjusted as a youth and adult. ?Lesbians and gays are inherently sick and prey on children. Giving them custody of children opens those children up to sexual abuse. They cannot raise healthy children,? (Oppos..199). Noom 3 The statistics certainly do not support these statements, ?Adults who sexually molest children are a diverse group. No one race, religion level of intelligence, level of education, occupation, or income sets perpetrators apart from the rest of the population,? (New Civil.. 78). One thing is clear, most often a child molester is a heterosexual male who is acquainted with the victim (New Civil..78). Others believe that a child of a homosexual is most likely going to be a homosexual, and even if they are not they will have a hard time growing up due to the teasing and stereotypes of their classmates and community. Studies have proved these beliefs false, ?Although studies have assessed over 300 offspring of gay or lesbian parents in 12 different samples, no evidence has been found for significant disturbances of any kind in the development of sexual identity.? they go on to say that, ? the same held true for moral development, intelligence, and peer relationships,? (New Civil..132). Like all children, kids from gay and lesbian

Free Essays on Suffering In “Crime And Punishment“

Suffering The motif of suffering plays a large role in Fyodor Dostoyevky’s Crime and Punishment. The motif of the need of suffering is used throughout the novel to produce the book's theme: great suffering leads to salvation and the expiation of man's sins. In Crime and Punishment, several characters undergo much pain and personal anguish. Rodion Romanovitch Raskolnikov and Katerina Ivanovna Marmeladov are two characters in the novel that undergo suffering and inner turmoil. Both these characters suffer throughout the novel in many different fashions but the effects of their suffering are the same. Raskolnikov's suffering has a direct relationship with his guilt over his crime. It is also an indirect result of his dual personality and his obsession to prove his â€Å"Extraordinary Man† theory. He is represented as being either cold, intellectual and isolated from society, or as being warm and compassionate. In the novel, he is shown as warm and compassionate when he tries to help a prostitute being solicited by an older man and when he gives most of his money to the Marmeladovs, The murder of the pawnbroker, Alyona Ivanovna, is the result of his intellectual side's need to determine whether or not he fits his â€Å"Extraordinary Man† theory. The humane and compassionate side of his personality was forced to suffer because of the actions of his cold and isolated side. After committing the murder, Raskolnikov’s body turns on him, mentally and physically. He become very ill and his personality is not what it was before. His personality changing is show n when he tells his family and also Razumihin to stay away. Dostoyevsky writes, â€Å"The conviction that all his faculties, even memory, and the simplest power of reflection were failing him began to be an insufferable torture"(81). This personal anguish that Rodya has to suffer with is part of his theory because the theory requires the â€Å"extraordinary man† to suffer gr... Free Essays on Suffering In â€Å"Crime And Punishmentâ€Å" Free Essays on Suffering In â€Å"Crime And Punishmentâ€Å" Suffering The motif of suffering plays a large role in Fyodor Dostoyevky’s Crime and Punishment. The motif of the need of suffering is used throughout the novel to produce the book's theme: great suffering leads to salvation and the expiation of man's sins. In Crime and Punishment, several characters undergo much pain and personal anguish. Rodion Romanovitch Raskolnikov and Katerina Ivanovna Marmeladov are two characters in the novel that undergo suffering and inner turmoil. Both these characters suffer throughout the novel in many different fashions but the effects of their suffering are the same. Raskolnikov's suffering has a direct relationship with his guilt over his crime. It is also an indirect result of his dual personality and his obsession to prove his â€Å"Extraordinary Man† theory. He is represented as being either cold, intellectual and isolated from society, or as being warm and compassionate. In the novel, he is shown as warm and compassionate when he tries to help a prostitute being solicited by an older man and when he gives most of his money to the Marmeladovs, The murder of the pawnbroker, Alyona Ivanovna, is the result of his intellectual side's need to determine whether or not he fits his â€Å"Extraordinary Man† theory. The humane and compassionate side of his personality was forced to suffer because of the actions of his cold and isolated side. After committing the murder, Raskolnikov’s body turns on him, mentally and physically. He become very ill and his personality is not what it was before. His personality changing is show n when he tells his family and also Razumihin to stay away. Dostoyevsky writes, â€Å"The conviction that all his faculties, even memory, and the simplest power of reflection were failing him began to be an insufferable torture"(81). This personal anguish that Rodya has to suffer with is part of his theory because the theory requires the â€Å"extraordinary man† to suffer gr...

Advantages and Disadvantages of Nutrigenomics

Advantages and Disadvantages of Nutrigenomics The word â€Å"Nutrigenomics† is a combination of nutrition and genomics. Nutrition is about the relationship between food and health; genomics is the study of entire genetic makeup of an organism and how they are expressed and regulated. Therefore, nutrigenomics is a field which concerned about the relationship between diet and gene expression by describing the approach to nutrition and human health that studies the implication of genetic differences in human response to food and how food alter the gene expression, biochemistry, metabolism and promotion of health (Elliot R, 2002). In other words, nutrigenomics is the study and application of gene and nutrition interaction. Besides, nutrigenomics also provides a basis for understanding the biological activity of food components (Rawson N, 2008). In addition, nutrigenomics has also been described by the influence of genetic variation on nutrition by correlate the gene expression with a nutrient’s absorption, metabolism and how it is eliminated from our body. In nutrigenomics, nutrients are seen as signals that are detected by a sensory system in the cell that tells the body cells about its environment (diet). Once the nutrient interacts with such system, it alters the gene, metabolite production and protein expression in depending on the level of nutrient it detected (Afman and Muller M, 2006). Hence, different diets will elicit different patterns of gene, protein expression and metabolite production. Such patterns of effects have been referred to as dietary signatures, where they are examined to investigate how homeostasis is influenced (Afman and Muller M, 2006). There are many ways on how nutrigenomics is useful to improve quality of life. Firstly, nutrigenomics define the causality relationship between specific nutrients and diet on human health by determining the mechanism of the effect of the nutrients or diet to human body. Besides, nutrigenomics helps to facilitate prevention through dieta ry modification when the diet-related diseases are detected in early stage. Nutrigenomics also allows the examination on how nutrients affect the genes present in the human genome. With all these reasons, nutrigenomics promotes and improves the understanding of people on how nutrition influence metabolic pathways and alter the homeostatic control in our body. Moreover, nutrigenomics is also able to demonstrate the impact of bioactive food compounds and its effect on human health, which should lead to the development of functional foods that will keep people healthy based to their individual needs. Then, this will further prevent development of chronic diet-related disease such as cardiovascular diseases, obesity and Type 2 diabetes mellitus. In addition, nutrigenomics also involve in finding markers of the early phase of diet-related diseases. At this phase, intervention with nutrition approach can restore patient’s health. Once a marker has been found and measured in an indi vidual, the stage of susceptibility of the person to develop the diet-related diseases can be quantified and personalized dietary recommendation can be then given to that particular individual and further improve his or her quality of life. Cardiovascular disease (CVD) is one of the lifestyle diseases and it is the most common cause of death all over the world. In Malaysia, about 30% of deaths are caused by CVD (WHO, 2009). There are many factors that can lead to CVD. For example, elevated low density lipoprotein (LDL) level, low level of high density lipoprotein (HDL) and high level of total cholesterol. Diet has a significant effect on CVD. However, long term health benefits can be obtained from dietary proteins and bioactive non-nutrients, called phytochemicals, which could be either integrated into the diet or be part of the food itself. One of the foods that can be used to reduce the risk of getting CVD is soybean. Soybean contain soy protein and it contains phytoestrogens whic h bind to estrogen receptors in the body. Besides, soybean also contains high level of Isoflavones. There are three major isoflavones in soybeans which are genistein, daidzein and glycetein. Isoflavones have a non-steroidal structure. However, they possess a phenolic ring that enables them to bind the estrogen receptor and act either as estrogen agonists or antagonists (Makela et al., 1995).

Mobile Computing and Social Networking Essay Example | Topics and Well Written Essays - 1000 words

Mobile Computing and Social Networking - Essay Example For the same reason, health industry has always been a hot spot for research and development thereby attracting lots of investment and renovation. Monitoring of Patient Vital Signs Technology has revolutionized the health care sector to such an extent that one’s blood pressure, blood sugar levels, oxygen levels or respiratory levels all can be measured using mobile technology. Thus the perils of a patient travelling to a doctor’s office for these physiological states to be tested, manual documentation of the readings by a nurse or a clinician and the occurrence of errors while recording the readings etc can be avoided. Above all the greatest advantage is saving the most valuable resource- time. A scenario resembling a science fiction movie where sensors implanted under ones skin detects ones blood sugar level and alerts the doctor is not very far if technological explosion happens at this pace. Today’s technology has made patient’s care very effective. Sma rt phones and broad band enabled devices has allowed patients to do their own monitoring of vital signs and body functions and upload them to their medical provider’s clinical servers. Videoconferencing with their doctor via phones is possible. Not only the patients but also the hospitals are benefitted by the technology. Devices like ECG machines, ventilators, oxygen sensors, blood pressure sensors are connected to the hospital server that records and transmits to the doctor or the nurse to ensure the best care possible. As Shahriyar, Bari, Kundu, Ahamed and Akbar (2010) point out, the use of bio sensor based mobile monitoring system collects data from the patients, mines the data, predicts the patient’s health status, and provides feed back through their mobile phones. So they can access their health information anywhere and anytime. This monitoring system is called Intelligent Mobile Health Monitoring System (pp. 5-6). Advantages As Smith (2011) points out, enhanced patient doctor interaction, accessibility of health care to geographically remote patient, greater exchange of information, increased accuracy of patient records, saving time with diagnosis and treatment of illness, freedom of patience from smoldering hospital rooms and cumbersome medical devices are some of the advantages of monitoring vital signs using mobile computing technology. Wireless networking enables the transmission of signals from the monitor of an ambulance to the emergency room so that the staff is alert to treat the patient as soon as they arrive. The use of mobile technology informs the doctor about the early symptoms of his patients before acute attacks occurs. This is a boon to patients who are reserved in nature as they can express their problems without face to face interaction with the doctor. Doctors also can provide more assistance regarding the treatment and medication which otherwise would have been shortened due to lack of time. Doctors are benefitted in a way that they can focus more on priority tasks. These technologies make the health care system personalized and thereby improve its quality. Disadvantages This technological advancement may not be always an easy task for not so technologically savvy people, especially the older generation. The chances of going offline can cause unprecedented delay in communication between the doctor and the patient. There is a high risk of patient

Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 words

Exxon Moblie Company - Essay Example The company had stored over 72 billion equivalent of oil barrels by the end of 2007. The company also has 37 oil refineries in 21 different nations. This makes Exxon Mobil Corporation the world’s leading refiner (Vassiliou 54). This paper will look at the Exxon Mobil Corporation. Exxon Mobil Corporation is the leading of the largest oil producers in the world. The company boasts of an everyday oil production of 3.921 million barrels of equivalent. This was almost 3% of the globes oil production, in 2008. Nonetheless, when Exxon Mobil Corporation is categorized by gas and oil assets, it is placed 14th in the globe. The Daily Telegraph wrote an article in 2012. This article asserts that Exxon Mobil Corporation has become one of the most despised companies in the world, with the ability to influence the fate of many countries and American foreign law. In addition, Exxon Mobil Corporation drills oil in areas leased to them by countries controlled by dictators, for example, Equator ial Guinea and Chad. The company also has little regard for the environment. The company’s chief executive, Lee Raymond, until 2005, opposed the administration’s interference at any stage and was cynical about global warming and climate change (Vassiliou 57). The corporation was condemned for its sluggish reaction to handling the Alaska oil spill. The headquarters of Exxon Mobil Corporation is in Texas, Irvin. The corporation sells products all over the globe under the trade names of Esso, Mobil, and Exxon. In addition, the company owns a number of businesses, for example, SeaRiver Maritime, an oil shipping corporation, and Imperial Oil Limited, located in Canada. It owns 69.6% of the Imperial Oil Limited. The upstream division of Exxon Mobil Corporation leads the corporation’s cash flow. It contributes almost 70% of returns. The Exxon Mobil Corporation’s corporate citizen report in 2006 indicated the company offers 82,000 employment opportunities all ove r the world (Vassiliou 62). The report also asserts that 27,000 workers are located in the company’s Houston upstream headquarters and almost 4,000 workers are in the company’s Fairfax downstream headquarters. Exxon Mobil Corporation is structured functionally into several functioning sections. These sections are subdivided into three groupings. Nonetheless, Exxon Mobil Corporation has a number of supplementary sections, for example, Coal and Minerals, which are separated from the main divisions. The upstream division is located in Houston, Texas. It is concerned with wholesale operations, shipping, oil exploration, and extraction. The downstream division is located in Fairfax, Virginia and is concerned with retail operations, refining, and marketing (Vassiliou 64). Also, the downstream division comprises SeaRiver Maritime, International Marine Transportation, ExxonMobil Refining and Supply Company, and Engineering Company ExxonMobil Research, and ExxonMobil Fuels, Lub ricants and Specialties Marketing Company. In addition, the chemical division is found in Texas. Exxon Corporation’s chief executive officer had a meeting with Mobil Corporation’s chief executive officer in 1998. Both these chief executive officers had initial talks of the probability of a merger between the two corporations. Later on, management proceeded with negotiations and gave the board the results of the discussions. In 1998, the chief

Performance appraisal Essay Example for Free

Performance appraisal Essay Performance appraisals are tools that measure and evaluate a persons performance on the-job for a certain amount of time. There are many different types of appraisal techniques to assess the companys employees. Frequently these evaluations can lead to better benefits, promotions, and other rewards. The question is why do companies use appraisal systems? This paper will discuss the systems and answer this question. The performance appraisal assists in the monitoring and evaluating of high-quality and low-quality work performance inside the service organization. The performance appraisal system, when conscientiously integrated with the organizations mission, strategic plan, structure, job design, and motivation and reward system, can serve as a valuable tool to change the personnel profile in a positive way (Kettner, 2002). Performance systems are only good if they are carried out accurately by the managers or supervisors and are tactically planned out. A good Manager or supervisor can associate the objectives of an organization to a certain job tasks. The employees should be well aware of the company expectations of them before the appraisal. Good communication is crucial in the performance appraisals systems processes. The person doing the appraisals is to remain bias free in turn for the process to work accurately. The appraiser must assess the sections of performance that may need to be improved upon. For the most part of the process the appraiser needs to stay in the shadows and just watch the employees work without their knowledge, because when people know they are being evaluated they tend to mess up . Specific norms inside the ratings need to be set up in turn to reward performance successfully. The evaluation cannot just have a one or a two in evaluating people are different and should use a larger scale. Evaluating several qualities is the framework for an excellent performance appraisal procedure. The most important thing to remember throughout the process is to remain truthful and honest. An exceedingly industrious performance appraisal system will have the chance for staff enhancement. A well-integrated performance appraisal system is tied to the work performed, accurately indicates, through a scoring system,  each employees level of performance, and provides a reliable indicator of an employees strengths and weaknesses (Kettner, 2002). The top five employees after the appraisal may see beneficial rewards or an increased salary. This appraisal will happen frequently to give everyone a chance for the rewards. These appraisals will be conducted in a timely manner with little delay to work. A good performance appraisal can have a number of things, some are listed below. †¢Finishes all work in a timely manner†¢Abides by businesses procedures for work†¢Work is orderly and correct†¢Works as an individual or with a group good†¢On time for work†¢Takes notes in meetings and is involved†¢Uses time wisely and prioritize effectively†¢Initiates and remains productive with constant cooperation†¢Appreciate rules and regulations†¢Implements policies and procedures†¢Adapts to changes within the business†¢Uses procedures to resolve problemsCompleting work in a timely manner makes the task easier to complete, there will not be a great deal of work waiting for the next day. In order top have work completed in a timely manner the work and space needs to be organized. The more organized a person is the better he will do in the organization. Work and other aspects in life are alike, for example, if a person is organized in life then he will be at work to. Most people believe time costs money so if the time is being wasted then so is money, this is the reasons for procedures and protocols. Procedures are important to follow because this will cause fewer problems down the line. Rules and regulation need to be followed to the T because they are there to help keep things running smoothly. Problem-solving techniques are always a good thing to see. A good worker always uses policies and procedures to solve minor problems; this will look good during appraisals. Without procedures and policies to follow there would be chaos, people would be unable to work together. An employee needs to be able to work well with a group or by him self to grow in the work environment. A good employee is able to take notes while in a group meeting to refer to later if needed. Employees need to get involved with important conversations and voice their opinions for other to hear on a  topic. The more the employee talks and is cooperating the better he will be able to do his job. Time is important in any business, so it is crucial to be on time for work everyday. When the employee is late he might have missed an important meeting or crucial information. The employee needs to be able to prioritize and make sure things are in order to work effectively. Most important of all an employee needs to be able to accept and be able to adapt to change. The business community is changing every day and the business and employees need to change with it. A performance appraisal of the employees happens everywhere whether there is an official system in place or not. In a small company the official system is probably not used due to the fact there are not numerous employees. While in larger companies the formal appraisal system is a must because there are a number of employees that need to b e watched and rewarded if needed. Appraisals are meant to reward those who work hard and for those who could need a little extra boost to keep them going. This type of acknowledgment and ways to prevail over the problems are best accomplished by offering training to those who need it. When the appraisal is done, the results should be able to tell the manager or supervisor who needs rewarded and who needs a little help. The employees should understand that the appraisal is there to help them not to hurt them. When improvements are decided on the employees, managers, and supervisors should agree on these. The employees should be able to have a say in what type of training they would be doing because if the do not like it then it would be a waste of time. The performance appraisal ought to improve an employees inspiration and show the way for a course to new opportunities and adventures. References Kettner, P. (2002). Achieving excellence in the management of human service organizations. Boston: Allyn and Bacon.

Comparing Creation Myths of Ancient Egypt and The Christian Bible Essay

Comparing Creation Myths of Ancient Egypt and The Christian Bible Creation in Ancient Egyptian religion can be much different than the creation account taken from The Bible. Genesis has a set description of â€Å"The Beginning† while there are several different versions and variations in Egyptian mythology. The versions range from a â€Å"one god† myth (Ptah; see picture) to the more common creator out of Nun, which in itself has several derivations. The Ogdoad is a grouping of eight gods that existed before the creator and formed him. This version is taken from Middle Egypt at Hermopolis. The eight gods consisted of Amun, Huh, Kuk, and Nun and their counterparts (i.e. Nun and Naunet). They came together to create an egg that contains the creator (Baines, 1991). This is the point at which variations will occur. Inside the egg there could be gods (Re, Atum, or sometimes even Thoth) or a Blue Lotus. This Lotus would come forth from the egg and rise high into the darkness to a young god, Amen-Re. (The egg was surrounded by Nun which contained the Ogdoad. The Ogdoad consisted of four serpents and four frogs.)(Egyptian Creation Story, pg. 1) The child radiates light and banishes the darkness. He destroyed the silence with his Word and thus creation began. He then constructed a mound for which he could sit upon. (The Benben Stone, which was kept in Heliopolis, was said to have been the mound upon which the creator god, in this case Re, sat.(Redford)) In a different account the mound came forth from the waters of Nun bearing the egg and a falcon emerged. This falcon soared into the air and took its place as the sundisk (Redford). The falcon could also be represented by a winged insect such as a beetle or as a golden falcon. Another variat... ... is reality. If this type of thinking were to be followed one would come to realize that all the gods and goddesses did exist and so did the events told time and again in story. They were alive in the conscience of society. Creation did begin with Nun, yet it also began with God creating the heavens and the earth. Everything depends on time, place, and perception of reality. WORKS CITED Holy Bible. New International Version. Zondervan. Grand Rapids, Michigan. 1984. Genesis Chapter 1. John Baines, Leonard H. Lesko, David P. Silverman. Religion in Ancient Egypt. New York Cornell University Press 1991. Pages 92-100. Ancient Egyptian Religion. http://www.egypt-tehuti.com/religion.html. Pages 2 and 3 of 5. Egyptian Creation Story. http://members.aol.com/kheph777/mideast/mythos/egyptcrt.html. Page 1 of 3. Redford, Professor Donald. Oral Communication

Personal Ethics Essay

Personal ethics comes from inside and are influenced by our everyday life and people around us. The directions we obtain as a child helps to form and begin our awareness of ethics. My upbringing memoirs and experiences instilled a well-built belief in family structure and significance of family in general. I was fortunate to be born and brought up in India in a traditional Roman Catholic family. My father was a doctor and he died of heart attack when I was ten years old. My mother was a registered nurse and I have three older brothers and one younger sister. My mother went to the Middle East to work as a nurse and had to leave us in a boarding school. I missed my mother a lot while I was in the boarding school. That was when I decided what I wanted to do. My only ambition was to become a nurse to be with my mother. I always used to watch my parents caring sick people. My parents constantly reminded me to live in Christian faith. They led us by example all the time, providing precious lessons vital to my development. My parents taught me to treat others as we would want them to treat us. I also learned from my parents that every person is important and we should love and respect them. I strive to live by those set of laws, though it is not always easy. My faith also influences my philosophy. I believe in God and God has a plan and purpose for every one of us. This is the basis of my ethical practices. Each individual cultivates different cultural, spiritual and personal values from their own life experiences which add to their worldview and philosophy of nursing in their practice. To me ethics is my own personal belief structure. Knowing our own personal values is critical to every person. My moral compass in nursing offers highest priority for the wellbeing of patients. My moral courage helps me to speak up, stand up for my personal belief and moral values and bring about change in my work place. The persona l and professional values, my relationship and behaviors to others and my morals help me succeed in my personal and professional life. Our conscience acts as a judge for each one of us. We are responsible for our actions. I believe that God is using me as a tool to care for the needy by providing me the knowledge and ability to promote healing. I also believe in the power of prayer. My patients used to tell me I am always smiling. I believe that it is the gift of God and being a nurse is, a calling not just a career. World view is a personal insight about meaning and reality. It helps the person to interprets, through his or her own eyes, a personal belief about the world. My personal worldview is shaped by my Christian religion, origin as an Indian, circumstances, experiences, and education and philosophy. I accept God as the center of the universe. I believe that I am a good mother for my three kids, faithful wife to my husband and an excellent nurse. I also believe in afterlife. I take pride in my profession. My nursing philosophy comes from my desire to care for others. I consider that nursing care is based on c oncrete evidence that is provided within a respectful framework. I always treat my patients the way I wanted to be treated if I am in that situation. Nurses are honored to interact with patients and families at some of the most vulnerable points in their lives. Being considerate of that vulnerability is important. Being respectful of my health care team is also important, as I consider that each of us play a fundamental role in the care of patients and families that we provide. I believe that God is using me as a tool to care for the needy by providing me the knowledge and ability to promote healing. It is essential for the nurses to understand their own selves so that they are able to take care of their patients better. I believe that spirituality plays an important role in the nursing profession. I think that the care of the soul is the beauty of the art of caring in nursing. The values such as integrity, responsibility, trust, reliability, and honesty are some of the personal values, which will determine how we face the world. Reliability and responsibility are very important to one’s professional and personal life. Culture is something that a person learns from his family and surroundings, and is not inbuilt in him from birth. My upbringing as a Christian in Southern part of India, active participation in church activities and catholic schooling have helped me to value human dignity and assist me to take right decision in my personal and professional life. Awareness of different rules about how their members coexist with each other and interact with each other. Some cultures believe that discussing death, making a living will can invite death to the person who is ill. Looking at the life in different ways should be respected always (Runzheimer & Larsen, 2011). Cultural diversity and differences in personal values can direct our relations with patients, family, and co-workers. Cultural competence is the ability to provide effective care for patients and families and our co- workers who come from different cultures. To understand different cultural beliefs and practices requires flexibility and a respect for others viewpoints . Ethical issues occur in everyday practices. An ethical dilemma is described as a type of situation that involves being in between two correct courses of action that leads the person to choose the right move and still be wrong at the same time (Purtillo, 2011). This can cause a lot of distress as it encompasses both ethical conflict and conduct. The ethical decision what we make should respect the patient and family desires, physician’s belief and concepts on life and death in our own view. Many situations arise in the critical care where nurses and doctors are obligated to make ethical decisions in a short period of time. Few years back I came across a situation in our ICU. A 90 year old woman from nursing home got admitted with history of multiple strokes with weakness on her right side, emphysema and difficulty in swallowing. She was demented also. Her admission diagnosis was aspiration pneumonia. She had two children and her son was the health care proxy who was living in C alifornia and he couldn’t come to visit her mother because of some personal situation. Patient’s daughter who was living locally was taking care of her. The daughter wanted to place the feeding tube and treat for every problem. We respected the daughter’s decision. We started her on antibiotics. We placed the feeding tube and and started feeding her. Day by day her respiratory status started deteriorating. The attending physician contacted the patient’s son over the phone and explained the patient’s condition in detail. Apparently, we found out from him that the patient had a living will that stated she did not want any feeding tube or even antibiotics in a situation where her quality of life was poor. Fortunately patient’s son came with her living will and our hospital ethics committee had a talk with her family especially the daughter. Because the patient’s wishes were clearly stated in the living will, she was made comfortable and transferred her to a private room to allow the family to be with her all the time and she died peacefully after one day. In this situation, the daughter wanted to treat her mother even though she knew about her wishes and she did not tell us anything about the patient’s living will. She was acting unrealistic in this situation. The decision was tough for the daughter in this situation. In my view the physician made the right choice to contact her son that put an end to her sufferings. Nurses can make satisfactory solutions to the different ethical problems through creative and knowledge based approach. Each nurse has the responsibility to optimize the caring response and reduce damage to the patient. .â€Å" Nurses are leaders and vigilant advocates for the delivery of dignified and humane care. Nurses actively participate in assessing and assuring the responsible and appropriate use of intervention in order to minimize unwarranted or unwanted treatment and patient suffering† (American Nurses Association, 2001). The significant impact we make in the lives of our patients and their families in their vulnerable situations and the positive encouragement I get from my nurse manager, co-workers, patients and families keeps me moving in my profession. References American Nurses Association (2001). Code of ethics for nurses with interpretive statements. Washington, DC. Retrieved from http://www.sfcc.edu/files/SFCC NursingStudentHandbook Purtilo, R., & Doherty, R. (2011). Ethical dimensions in the health professions. (5th ed.). P (5-10) St.Louis, Missouri: Elsevier Saunders. Role of the Registered professional nurse. June 8, 2005. Retrieved on June 6, 2012 from http://www.nysna.org/practice/positions/position6.htm Runzheimer, J., & Larsen, L. (2011). Medical ethics for dummies. (p. 113). NJ: WileyPublishing.

Project Report on Dabur Company Essay

Declaration By Candidate I wish to state that the work embodied in this project titled â€Å"Financial Modeling Of Dabur† forms my own contribution to management carried out at Vivekanand Education Society’s Institute Of Management Studies & Research Chembur, Mumbaiunder the guidance of Mr.DheerajVaidya, Director, Corporate Bridge Consultancy Pvt. Ltd. Wherever references have been made to intellectual properties of any individuals/ institute/ government/ private/ public bodies/ universities, research paper, text books, reference books, archives of newspapers, corporate, individuals, and any other source of intellectual properties viz., speeches, quotations, conference proceedings, extracts from the websites etc they have been clearly indicated, duly acknowledged and included in the Bibliography. Signature of the candidate Acknowledgment I would like to express my profound gratitude to all those who have been instrumental in the preparation of my project report. On the onset, I would like to thank the organization â€Å"Corporate Bridge Consultancy Pvt.Ltd.† for providing me the opportunity to undertake this summer internship and allowing me to explore the area of valuation and financial modeling, which was totally new for me and which would prove out to be very beneficial in my future assignments, studies and career. I wish to place on records, my deep sense of gratitude for my project guide, Mr.DheerajVaidya, director of corporate bridge consultancy pvt. Ltd. for continuous guidance and encouragement provided to me throughout my internship period. Table Of Contents SR. NO.| CONTENTS| PAGE NO.| 1| Executive Summary| | 2| About Corporate Bridge | | 3| Objective Of Study| | 4| | | 5| Industry Profile| | 6| Company Profile | | | Introduction Of Financial Modeling| | 7| Micro-Economical Factors| | 8| Understanding The Financial Statements | | 9| Research Methodology| | 10| Observations| | 11| Suggestions| | 12| Conclusion| | 13| Appendix| | 14| Bibliography| | 15| | | 16| | | 17| | | 18| | | 19| | | 20| | | | | | | | | | | | | | | | | | EXECUTIVE SUMMARY Indian economy is the fastest growing economy in the world. Indian companies are growing at faster rate in terms of revenue, expansion and global existence. Due to significant growth shareholders are benefitted by good dividend and return on investments in share market. In the last decade equity has given the best return and still the growth phase is continued. But retail investor has also lost his hard earned money due to lack of knowledge and awareness of the equity market. Without knowledge in equity market and trading on tips it become gambling instead of smart investment. Here the role of financial modeling and valuation of securities begins to find out the intrinsic value of the stock, whether it is overvalued or undervalued. Based on the research findings equity analyst recommends whether to buy, sell or hold the stock. In this report I have explained Financial Modeling of Dabur Company. This report begins with the understanding the present micro and macro-economic condition and how they affect the growth of the country. It discusses the present economic indicators and expected growth of India and FMCG industry in the future. The report further analyse financial statements of the Dabur Company. By using historical data and making some assumptions, calculations future earnings are forecasted. After that using DCF valuation we find out intrinsic value and Relative valuation used to compare Dabur with his peers. Hence, this report is an attempt to comprehensively study of Financial Modeling And Valuation Of Dabur Company. About Corporate Bridge Corporate Bridge Group is formed by graduates from leading institutes (IITs, IIMs & AIM). â€Å"Corporate Bridge† as the name suggest, helps in bridging the gap between the aspiring entrant and the corporate world. Corporate Bridge is globally recognized training firm, providing blend of instructor-led and online financial training programs along with e-learning services. With Corporate Bridge’s entrepreneurial spirit coupled with unparalleled experience (CLSA India, KPMG, YES Bank, JPMorgan, SBI Capital Markets, CRISIL etc) and comprehensive capabilities (MBA, CFA, FRM, CAs) across all industries and business functions, we commit to deliver a world class professional training and learning services that continues improving knowledge efficiency. Corporate Bridge Group; has two verticals â€Å"Educorporatebridge† and â€Å"Elearninglabz† *   EduCorporateBridge deals with Online and Instructor Lead Training Programs in various financial courses viz. Equity Research, Wealth Management, Technical Analysis Investment banking, Private Equity, Fundamental Analysis, Investment Research, Credit Research etc and preparatory courses like CFA Level I & II and FRM Level I & II, Campus Placement Trainings Elearninglabz solution portfolio consists of custom e-content development for training and learning needs in collaboration with our clients and subject matter specialist, custom Learning Management System (LMS) suite, Test & Assessment solutions. Industry Overview The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. This industry primarily includes the production, distribution and marketing of consumer packaged goods, that is those categories of products which are consumed at regular intervals. The sector is growing at rapid pace with well-established distribution networks and intense competition between the organized and unorganized segments. It has a strong and competitive MNC presence across the entire value chain. The FMCG’s promising market includes middle class and the rural segments of the Indian population, and give brand makers the opportunity to convert them to branded products. It includes food and beverage, personal care, pharmaceuticals, plastic goods, paper and stationery and household products etc. India, Asia’s third largest economy, saw urban consumers spend less in calendar year 2012 due to high inflation, muted salary hikes, and slowing economic growth that affected both real wages and sentiment. During 2012, the overall slowdown in the economy has begun to affect the FMCG sector with companies posting deceleration in volume growth in the recent quarterly results. Discretionary spending has been hit severely due to the ongoing slowdown. The prevailing high inflation level is also a cause of concern for the sector. The trends seen in 2012 are likely to accelerate in 2013. Growth will come from rural dwellers that are expected to see a rise in disposable incomes due to the direct cash transfer scheme, while urban consumers will continue to be affected by the macroeconomic environment. The consumer products industry has been growing at a brisk pace in the past few years backed by robust economic growth and rising rural income. Growth drivers such as premiumization, rapid urbanization, evolving consumer lifestyles and emergence of modern trade have shielded the industry from the slowdown. The consumer products or the Fast Moving Consumer goods (FMCG) sector is valued at Rs 1.6 trillion (Source: Nielsen). The industry is urban-centric with 66% share of the goods being consumed by urban India. Metropolitan cities & small towns (population of 1-10 lakh) have been driving the FMCG consumption in urban India since 2002. In fact middle India, comprising of the small towns and consuming 20% of overall FMCG sales, has been growing the fastest across rural and urban segments. As per Nielsen, the FMCG market size of middle India is set to expand from Rs 287 bn in 2010 to over Rs 4 trillion by 2026. Rural India, where 70% of the population resides but only 34% consume FMCG goods, presents the biggest market potential for the industry. Backed by low unit packs and aggressive distribution reach, rural market size has expanded four times to Rs 564 bn since 2002. Companies such as Hindustan Unilever and Dabur which derive nearly half their sales from rural India have been increasing their reach. FMCG goods are retailed through two primary sales channels – General Trade and Modern Trade. General Trade comprising of the ubiquitous kirana stores is the largest sales channel forming 95% of overall retail sales. However, growth of consumer goods retailed through Modern Trade channel is outpacing the growth of FMCG products in General Trade. Factors such as a comfortable and modern store experience, access to a wide variety of categories and brands under a single roof and compelling value-for-money deals are attracting consumers to organized retail in a big way. But modern trade is still an urban phenomenon with 17 key metros contributing to 73% of overall modern trade in India. Product categories such as packaged rice, liquid toilet soaps, floor cleaners, breakfast cereals, air fresheners & mosquito repellent equipment have a higher penetration in modern trade channel. Despite the relatively recent performance of private label products in India, it is already close to 7% of modern trade sales. Modern Trade is expected to gain greater importance with opening up of foreign direct investment in multi-brand retail. The implementation of the Goods and Services Tax (GST) is expected to benefit the sector immensely by reducing the overall incidence of taxation. GST aims to reduce the cascading effect by replacing a multitude of indirect taxes such as central excise, service tax, VAT and inter-state sales tax with a single GST rate. Moreover, FMCG companies will be able to optimize logistics and distribution costs in the GST era. The resulting cost savings by the companies can be passed on to the final consumer thereby boosting demand. However the implementation of GST has currently been put on the backburner by the government. FMCG Industry size (India) * Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% * Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * FMCG industry expected  to grow in mid to high teens going ahead. * In the last decade the FMCG sector has grown at an average of 11% a year; in the last five years, annual growth accelerated to 17%. * FMCGs are slowly and gradually positioning and deeply penetrating in the fast growing rural market. The Rural mind set is open to consumption of newer, more contemporary food categories and as a result, drive consistent growth. FMCG industry to be Rs.4000-6000 billion industry by 2020. * Indian rural market currently worth US$ 9 bn is expected to become a US$ 100 bn opportunity by 2025. * By 2025, total consumption is likely to quadruple making India the 5th largest consumer market. * The FMCG sector in India continues on a strong growth path with both urban and rural India contributing to its growth. Rural India contributes one third of FMCG sales in India. * Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics. * Rural India accounts for more than 700 Million consumers or 70% of the Indian population andaccounts for 40% of the total FMCG market. * The Rural market is a large market space with very low organized player penetration. Across the globe, the Indian rural market is probably the single largest â€Å"unit† of opportunity also with changing lifestyle and increasing consumer demand, the Indian FMCG market is expected to cross $80 billion by 2026 in towns with population of up to 10 lakhs. * The sector has a tremendous opportunity for growth in India, with the growing population, the rising incomes, education and urbanization, the advent of modern retail, and a consumption driven society. Source: credit suisse * According to credit suisse report, FMCG growth was 14% in the rural market and 16% in the urban market during the quarter ended December 2011; for the quarter ended March 2013, while growth in the urban market improved to 17%, it rose even higher, to 18%, in the rural market. Industry Classification and Performance Three well-identified sets of players operate within a highly developed and intenselycompetitive landscape of the Indian FMCG market. 1. Foreign players who are present through their subsidiaries such as Unilever, P&G, Nestle and PepsiCo 2. Strong Indian players with established national presence such as Marico, Dabur and Godrej Consumer Products. 3. Regional or small domestic players, such as Ajanta, Anchor, CavinKare etc., who are presentin a few regions of the country apart from these, there are regional and small-scale FMCG players such as small teaproducers and organic food producers, who mainly compete by offering low-priced products withsimilar looks or packaging compared to the bigger brands, to the ‘right consumers’ typicallybased in rural areas or in small towns. These players with lower corporate overheads andclear focus on specific consumer requirements have a competitive edge over larger FMCG players. Growth Drivers Government Policies and Regulatory Framework * Investment Approval: Automatic investment approval up to 100 per cent foreign equity forNRI and overseas corporate bodies. These investments are allowed in food processingsegments such as coffee and tea. * FDI in organized retail: India currently allows 100 per cent FDI in Cash & Carry segment and51% in single-brand retail, which is expected to be further increased to 100%. India is also expected to allow 51% FDI in multi-brand retail, which will boost the nascent organized retail market in the country. * Priority Sector: The Government of India recognizes food processing and agro industries aspriority sectors. * Relaxation of license rules: Industrial licenses are not required for almost all food and agro-processing industries, barring certain items such as beer, potable alcohol and wines, cane sugar, and hydrogenated animal fats and oils as well as items reserved for exclusive manufacturing in the small-scale sector. * Statutory Minimum Price: In October 2009, the government amended the Sugarcane ControlOrder, 1966, and replaced the Statutory Minimum Price (SMP) of  sugarcane with Fair andRemunerative Price (FRP) and the State- Advised Price (SAP). Opportunities in the FMCG Sector: Segment Overview: Segment Overview: Household Care * The detergents segment dominates the household care segment and has been growing at an annual growth rate of 10- 11% in the past five years. * The Household care segment is plagued by intense competition and high level of penetration. With rapid urbanization, emergence of small pack sizes and sachets is picking up * Local and unorganized players account for a major share of the total volume ofthe detergent market. Segment Overview: Personal Care Local and unorganised players account for a major share of the total volume ofthe detergent market The detergent segment dominates the household care segment and has been growing at an annual growth rate of 10-11% in the past five years. The Household care segment is plaguedby intense competition and high level ofpenetration. With rapid urbanization,emergence of small pack sizes andsachets is picking up. Segment Overview: Food and Beverages The Food and Beverages segment comprises of the food processingindustry,health beverage industry, breadand biscuits, chocolates & confectionery,Mineral Water and ice creams. The three largest consumed categories ofpackaged foods are packed tea biscuitsand soft drinks. The Indian hot beverage market isdominated by tea and the major share ofthe tea market is dominated byunorganized players. Dabur India Limited overview * Established in 1884 – more than 127 years of Trust & Excellence * Among top 4 FMCG companies in India * World’s largest in Ayurveda and natural healthcare * Revenue of r US$1 Billion (Rs 5,283 Crore) and Market Capitalisation of US$4 Billion (Rs 20,000 Crore) * Wide distribution network covering 3.4 million retailers across the country * 23 world class manufacturing plants catering to needs of diverse markets * Strong overseas presence with 30% contribution to consolidated sales * Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. * Headquarters: Kaushambi Ghaziabad – 201010 Uttar Pradesh, India * Top management: Dr. AnandBurman (Chairman) Mr.AmitBurman (Vice-Chairman) Mr. Sunil Duggal (CEO) * Employees approximately 3000 Key players at FMCG: Company| Key categories| Hindustan Unilever Ltd| Soaps, Detergents, Personal Care, Foods| Nestle India Ltd| Food, Beverages, Infant Nutrition| Dabur India Ltd| Personal, Health &Homecare, Foods| Godrej Consumer| Hair Care, Soaps| Colgate Palmolive Ltd| Oral Care & Toiletries| GlaxoSmithkline Consumer| Consumer Health Care| Marico Ltd.| Hair care, Food, Skincare| Procter & Gamble | Feminine Hygiene personal care| Britannia Industries Ltd| Biscuits| PEST Analysis Political * Stable political government. * Restrictions in import policies. * Rise in customs duty on petrol & diesel. * Partial withdrawal of stimulus packages Economical * Inflation rate * Decreased GDP * Increase in disposable income. * Indian FMCG Recorded 16% Sales Growth in last fiscal. The FMCG sector is the4thlargest sector of Indian economy with market size of more than 60,000crore Social * Rising rural India. * Consumerism. * Demography Technological * Research and development intensity * Information technology COMPETITOR ANALYSIS The key competitors are KeoKarpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India’s domestic market. Emami: HimaniNavratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj: Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Maricos: Parachute is premium edible grade oil, a  market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute’s primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu andHimani, which together with Dabur have about 85% of India’s domestic market. DaburChyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: SWOT Analysis STRENGTH * Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties) * Core knowledge of Ayurveda * Strong Brand Image * Distribution Network, Extensive Supply Chain, IT Initiatives and R & D| WEAKNESS * Seasonal demand like chyawanprash in winter * High price Vatika * Limited differentiation in some products like vatika| OPPORTUNITIES * Export opportunities * Increasing demand by people * Market development| THREATS * Existing competition like Zandu, Himani, Baidyanath * New entrant threats from substitutes like Bryllcream for vatika hair oil| Dabur: Strong Presence in FMCG Categories Category| Position| Market share| Key Brands| Hair Care| 3| 12%| DaburAmla hair Oil, Vatika hair oil &Vatika Shampoos| Oral Care| 3| 13%| Red toothpaste, Babool, Meswak, Red toothpowder| Skin Care| 3| 7%| DaburGulabari, Fem| AyurvedicTonics| 1| 67%| DaburChyawanprash| Digestives| 1| 56%| Hajmola| Fruit Juices| 1| 52%| Real Fruit Juices, Real Activ| Honey| 1| 50%| Dabur Honey| Glucose| 2| 25%| Dabur Glucose| Segment wise Market share of Dabur International business * Focus markets: * Egypt * Nigeria * Turkey * Bangladesh * Nepal * U.S. * Leveraging the â€Å"Natural† preference among local consumers to increase share in personal care categories * High level of localization of manufacturing and sales and marketing * Sustained investments in brand building and marketing â€Å"Domestic FMCG companies such as Godrej Consumer Products (GCPL), Marico and Dabur have grown at a robust pace of 20% average annual growth over the last five years. In a bid to expand their businesses further, these companies acquired several foreign brands and companies. Consequently, the share of the international sales to their total revenue has increased. The chart of the day shows that between FY06 and FY12, the contribution of international sales has increased substantially for most FMCG companies. However, the benefit at the top line has failed to percolate at the bottom line. Sometimes, acquired brands take a long time to break-even. Hair-styling brand Code 10 acquired by Marico in 2010 and Dabur’s Namaste acquisition in 2011 continue to remain in red. However, GCPL has seen reasonable success with several acquisitions such as Megasari in Indonesia, Darling Group in Africa and Cosmetica National. This may be on account of the fact that GCPL has focused on product acquisitions in which it has a strong core presence. â€Å" Growth Strategy: Three Growth Strategies Acquire Innovate Expand Expand * Strengthening presence in existing categories and markets as well entering new geographies * Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories * Calibrated international expansion – local manufacturing pp y y g and supply chain to enhance flexibility/ reduce response time to change in market demands Innovate * Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. * Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire * Acquisitions critical for building scale in existing categories & markets * Should be synergistic and make a good strategic fit * Target opportunities in our focus markets Acquisitions of Hobi Group, Turkey * Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 * Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era * Product range of the company is complementary to our product range * Acquisition provides an entry into another attractive emerging market and a good platform to leverage this across the region Acquisitions of Namaste Laboratories * Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011 * Namaste is a leading ethnic hair care products company, having products for women of colour, with revenues of $95 million from US, Europe, Middle East and African markets * The company markets a portfolio of hair care products under the brand ‘Organic Root Stimulator’ and has a strong presence in ethnic hair care market for women of colour. * Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5 billion and tap into significant market opportunity in the fast growing * At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x EBITDA Porters Industry Analysis: Supply:| Abundant supply through a distribution network of over 8 m stores across the country. Distribution networks are being beefed up to penetrate the rural areas. HUL has tripled rural network in 2011 and Dabur wants to double rural reach by FY13.| Demand:| Being items of daily consumption, demand is least impacted by economic slowdown.| Barriers to entry:| Huge investments in setting up distribution networks and promoting brands and competition from established companies.| Bargaining power of suppliers:| Inputs being mostly agri-commodities, the suppliers are numerous and lack scale to wield bargaining power. Companies like ITC that are integrated backwards have lower dependence on suppliers. | Bargaining power of customers:| Customer does not have bargaining power in case of branded products but intense competition within the FMCG companies results in value for money deals for consumers. | Competition:| Competition is faced from domestic unorganized players and established MNC’s. Price wars are a common phenomenon. Private labels offered by retailers at a discount to mainframe brands act as competition to undifferentiated and weak brands.| | Financial year 2013-2014 | With consumer spending remaining healthy, value growth in FMCG sales were over 18% in 2012-13 (Source: Nielsen). All the frontline FMCG companies registered double-digit sales growth during the year. Companies like Dabur, Godrej Consumer Products and Marico posted over 25% topline growth aided by brisk rise in overseas revenues. | | The rural markets continued to lead demand in personal care and oral care products. According to Nielsen’s data, rural sales in washing powder, hair oil and shampoo each contributed more than a third of the overall category sales in FY2012-13. Sales growth in rural markets surpassed that in urban markets in more than 50% of the FMCG categories. Nielsen has projected the size of the rural market to grow ten folds to $ 100 bn by 2025. | | In FY2012-13, margins of FMCG companies were hit by unprecedented increase in price of crude and other commodities. As crude price spiralled above $100 a barrel, price of input crude-derivatives, transportation/freight and packaging costs increased sharply. Advertisement and promotional spends remained high on account of heightened competitive activity. The companies effected judicious price increases and also reduced the packet sizes and stock-keeping units (SKUs). Hence the growth seen by FMCG companies was mostly volume led. The reduction in surcharge from 7.5% to 5% and hike in the base MAT kept effective tax rates unchanged during the year.| | Prospects| | | Household spending on FMCG goods has not witnessed any pressure so far. But going forward, a deficient monsoon is likely to impact farm income and thereby rural spending in the short term. Even in urban India, discretionary spending can get impacted by lower salary hikes and food inflation re-surfacing on poor rainfall. This is more likely to result in down-trading by consumers. | | FMCG companies have been reaping the benefit of waning inflation and series of price-hikes taken earlier. But with the ‘New Standard Packaging’ rules coming into effect in November 2012, the companies will no longer be able to hold prices by reducing the grammage sold. High base-effect in price levels and fears of hurting demand is likely to prevent companies from raising prices substantially. Apart from absorbing higher input costs, FMCG companies may have to bear expenses to bring their  products in line with the new packaging rules. Additionally, even rising competition is expected to keep brand investments by companies high through increased ad-spends and promotional expenses. Therefore, profitability of FMCG companies may witness short-term pain. | | But long term demand potential of FMCG goods remains robust. According to International Labour Organisation, India will have the highest working age population in the world by 2020. The National Council of Applied Economic Research projects the proportion of middle class population to swell from 13.1% at present to 37.2% by 2025-26. Increase in working-age population and rising middle class will translate into higher purchasing power & boost consumerism. Higher penetration and evolution in consumption pattern will drive rural demand. The FMCG sector is expected to reach market size of $ 74 bn by 2018 (Source: FICCI).| | Introduction Of Financial ModelingFinancial modeling refers to the process through which a company builds up a financial representation of some, or even all aspects of the company or the given security. The financial model is generally featured by performing calculations, and making recommendations on the basis of that information. Moreover, the model might also prà ©cis specific events for the end user in addition to providing direction regarding possible alternatives or actions.Theoretically, a financial model is a set of assumptions about future business conditions that drive projections of a company’s revenue, earnings, cash flows and balance sheet accounts. In practice, a financial model is a spreadsheet (usually in Microsoft’s Excel software) that analysts use to forecast a company’s future financial performance. Properly projecting earnings and cash flows into the future is important since the intrinsic value of a stock depends largely on the outlook for financial performance of the issuing company. A financial model spreadsheet usually looks like a table of financial data organized into fiscal quarters and/or years. Each column of the table represents the balance sheet, income statement and cash flow statement of a  future quarter or year. The rows of the table represent all the line items of the company’s financial statements, such as revenue, expenses, share count, capital expenditures and balance sheet accounts. Like financial statements, one generally reads the model from the top to the bottom, or revenue through earnings and cash flows. History as a Guide When trying to predict the future, a good place to start is the past. Therefore, a good first step in building a model is to fully analyze a set of historical financial data and link projections to the historical data as a base for the model. If a company has generated gross margins in the 40% to 45% range for the past ten years, then it might be acceptable to assume that, with other things being equal, a margin of this level is sustainable into the future. Consequently, the historical track record of gross margin can become somewhat of a basis for a future income projection. Analysts are always smart to examine and analyze historical trends in revenue growth, expenses, capital expenditures and other financial metrics before attempting to project financial results into the future. For this reason, financial model spreadsheets usually incorporate a set of historical financial data and related analytical measures from which analysts derive assumptions and projections.Macro-economical Factors: 1. Mid-Quarter Monetary Policy Review: June 2013Monetary and Liquidity MeasuresOn the basis of an assessment of the current macroeconomic situation, RBI has been decided to: * keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of their net demand and time liabilities; and * keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent.Consequently, the reverse repo rate under the LAF wi ll remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent.2. The above monetary policy stance has been informed by the evolving growth-inflation dynamic, the balance of risks as well as recent developments in the external sector.3. Since the Reserve Bank’s Annual Policy statement in May, global economic activity has slowed and risks remain elevated, most recently on account of uncertainty over policies of systemic central banks. On the domestic front, macroeconomic conditions remain weak, hamstrung by infrastructure bottlenecks, supply constraints, lacklustre domestic demand and subdued investment sentiment. Inflation has  moderated as projected. However, upside pressures on the way forward from the pass-through of rupee depreciation, recent increases in administered prices and persisting imbalances, especially relating to food, pose risks of second-round effects. As recent experience has shown, shifts in global market sentiment can trigger sudden stop and reversal of capital from a broad swath of emerging economies, swiftly amplifying risks to the outlook. India is not an exception.Global Economy4. Global growth has been patchy and uneven. Among advanced economies (AEs), during Q1 of 2013, growth in US and Japan improved while that in the euro area contracted. Growth in most emerging and developing economies (EDEs) has been relatively resilient, although in some large emerging economies, sluggish external demand and stalled domestic investment are dragging down economic activity. Inflation has been easing in the AEs due to weak demand conditions. EDEs, however, present a mixed picture: inflation remains elevated in the BRICS except China. Commodity prices, other than the price of crude, have generally softened in recent months.Domestic EconomyGrowth In May, the Central Statistics Office (CSO) reported India’s GDP growth in Q4 of 2012-13 of 4.8 per cent, a marginal improvement over the previous quarter. During the current financial year, the growth of industrial production decelerated to 2.3 per cent in April after picking up in the preceding month. All constituent categories of industry have slowed, with a persistent contraction in mining activity. The sharp weakening in the growth of capital goods production points to still damped investment demand whereas a pick-up in consumer non-durables could be indicative of a fragile return of consumer confidence. On the other hand, the services sector purchasing managers’ index rose in May on order flows. The onset of the south-west monsoon has been strong and on time.InflationHeadline WPI inflation eased for three months in succession with the May reading at 4.7 per cent, down from an average of 7.4 per cent in 2012-13. All constituent categories, barring food, have moderated. In the fuel category, coal and mineral oil prices declined, partly offsetting the upward revision in administered prices of electricity. Non-food manufactured products inflation too ebbed, driven by metal prices which fell for the eighth successive month in response to softening of global prices. Still ele vated food inflation, particularly in respect of cereals and vegetables, sustained upside pressures on overall  inflation. Retail inflation, as measured by the new combined (rural and urban) CPI, edged down from an average of 10.2 per cent last fiscal year to 9.3 per cent in May.Liquidity Conditions Net average daily borrowings under the LAF have declined gradually, from ` 1.2 trillion in March 2013 to ` 0.7 trillion in June 2013 so far (up to June 14) reflecting the sizable injection of primary liquidity through the reduction in the cash reserve ratio (CRR) in January, open market operations (OMO) purchases during Q4 of 2012-13, a significant reduction in the government’s cash balances with the Reserve Bank as well as two OMOs of ` 0.2 trillion in the current financial year so far. External Factors: The most significant development in the external sector has been the movement in the exchange rate. The rupee depreciated by 5.8 per cent against the US dollar during the current financial year up to June 14. It fell by 6.6 per cent during May 22-June 11 due to sell-off by foreign institutional investors, reflecting risk-off sentiment triggered by apprehensions of possible tapering off of quantitative easing by the US Fed. While the trade deficit has widened sharply due to a surge in festival-related/seasonal gold imports, available evidence suggests that a moderation in gold imports could be underway in June. Capital flows, which met the external financing requirement during April-May, moderated in June.Outlook At the global level, the International Monetary Fund (IMF) has warned of non-trivial risks of the global economy encountering a soft patch in the months ahead. On the domestic front, last year’s robust rabi production and the monsoon performance so fa r augur well for growth prospects. The spatial and temporal distribution of rainfall over the next three months will be crucial in determining the performance of agriculture. The continuing weakness in manufacturing activity needs to be urgently reversed. Key to reinvigorating growth is accelerating investment by creating a conducive environment for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment. On the inflation front, easing commodity prices at the global level and weaker pricing power of corporates at the domestic level are having a softening influence. Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence. The inflation outlook going forward will be determined by suppressed inflation being released through revisions in  administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee. Softer global commodity prices and recent measures to dampen gold imports are expected to moderate the CAD in 2013-14 from its level last year. The main challenge is to reduce the CAD to a sustainable level; the near-term challenge is to finance it through stable flows. The most recent number on the Centre’s fiscal deficit, at 4.9 per cent of GDP for 2012-13, has turned out better than expected and instils confidence in the Government’s commitment to contain the fiscal deficit for 2013-14 at 4.8 per cent. Perseverance with this consolidation should help in mitigating the twin deficit risks to the outlook. These positive developments, which have been acknowledged by international credit rating agencies, should have a favourable impact on invest or confidence.Current Account Deficit (CAD) woes: The Reserve Bank of India (RBI) in its monetary policy cut the cash-reserve ratio (CRR) and repo rates by 25 basis points (0.25%). But at the same time it made very clear the various risks that the Indian economy faces. While inflation is certainly one of the key risks, the other equally worrying factor is the current account deficit (CAD). Indeed, in the above chart shows, CAD (as a % of GDP) has been continuously increasing over five consecutive quarters from July-September 2011 (2QFY12) to July-September 2012 (2QFY13). This is bound to have an adverse impact on the stability of the country’s exchange rate at a time when domestic growth has also been slowing down. What is more, the rise in imports has largely been on account of fuel and gold imports. This is of more worrying to the RBI, than had the high CAD been on account of import of capital goods. | Understanding Financial StatementIncome StatementAn income statement (US English) or profit and loss account (UK English) (also referred to as a profit and loss statement (P&L), revenue statement,statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statementsof a company and shows the company’s revenuesand expenses during a particular period.It indicates how the revenues (money received from the sale of products and services before expenses are taken out, also known as the â€Å"top line†) are transformed into the net income(the result after all revenues and expenses have been accounted for, also known as â€Å"net profit† or the â€Å"bottom line†). It displays the revenues recognized for a specific period, and  the costand expenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported. The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time.Balance SheetIn financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, abusiness partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a â€Å"snapshot of a company’s financial condition†. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business’ calendar year.A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first and typically in order of liquidity.Assets are f ollowed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assetsor the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.Another way to look at the same equation is that assets equal liabilities plus owner’s equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner’s money (owner’s equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections â€Å"balancing†.Cash Flow StatementIn financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statementthat shows how changes inbalance sheetaccounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company,  particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standardthat deals with cash flow statements.People and groups interested in cash flow statements include: * Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses * Potential lendersor creditors, who want a clear picture of a company’s ability to repay * Potential investors, who need to judge whether the company is financially sound * Potential employees or contractors, who need to know whether the company will be able to afford compensation * Shareholders of the business.Th e cash flow statement is intended to 1. provide information on a firm’s liquidity and solvency and its ability to change cash flows in future circumstances 2. provide additional information for evaluating changes in assets, liabilities and equity 3. improve the comparability of different firms’ operating performance by eliminating the effects of different accounting methods 4. It indicates the amount, timing and probability of future cash flows.Working CapitalWorking capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.Horizontal AnalysisA procedure in fundamental analysis in which an analyst compares ratios or line items in a company’s financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon  under consideration.Formula,= current year-base yearbase year| Vertical AnalysisVertical analysis of financial statements is a technique in which the relationship between items in the same financial statement is identified by expressing all amounts as a percentage a total amount. This method compares different items to a single item in the same accounting p eriod. The financial statements prepared by using this technique are known as common size financial statements.Trend AnalysisTrend Analysis is the practice of collecting information and attempting to spot a pattern, or trend, in the information. Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned.= Current year*100 Base yearDiscounted Cash Flow (DCF) AnalysisIn finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs)—the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question. Present value may also be expressed as a number of years’ purchase of the future undiscounted annual cash flows expected to arise.Using DCF analysis to compute the NPV takes as input cash flows and a discount rate and gives as output a price; the opposite process—taking cash flows and a price and inferring a discount rate, is called the yield.Discounted cash flow analysis is widely used in investment finance, real estate development, and corporate financial management.What is relative valuation? In relative valuation, the value of an asset is compared to the values assessed by the market for similar or comparable assets. To do relative valuation then, – we need to identify comparable assets and obtain market values for these assets – convert these market values into standardized values, since the absolute prices cannot be compared This process of standardizing creates price multiples. – compare the standardized value or multiple for the asset being analyzed to the standardized values for comparable asset, controlling for any differences between the firms that might affect the multiple, to judge whether the asset is under or over valuedInterpretation of DCF valuation and Relative valuation| Review of Literature Mostly financial modeling of dabur was done before by equity research analyst of various research agencies, mutual funds, investment banks and brokerage house. Generally they have done it quarterly and annually before and after the company’s financial results. Justification and Likely Benefits Why financial modelingis important? Financial modeling acts as a useful tool which enables business options and risks to be estimated in a cost-effective way against various assumptions, recognize optimal solutions in estimating financial returns and understand the effect of resource constraints thus leading to more effective business decisions. Financial modeling can be referred as an art and like any other art form, it requires constant [practice and commitment to develop expertise in this area. In the present day world, many companies are becoming globally integrated with the international economy through the way of acquiring/establishing international operations. This calls for the requirement of strong financial models which can assist in performing the evaluation of every country’s operations, reflect on multiple currencies in their model, estimate varying capacity utilizations to estimate the optimal capacity under changeable industry demand-supply scenarios and similar more cases. Scope of Financial Modeling? Financial Modelling is a key skill with application in several areas withinbanking and finance industry as well as within corporations. In financialmodelling you learn to gather historical information on companies andanalyze company / industry performance on various financialparameters. This analysis is then used to build a company’s financialmodel, which in turn is key to projecting a future financial performance.Based on this model companies investors can arrive at a suitableevaluation for the companies. Financial models are usually made for financing of a project intransactions like: PPP/PFI, Mergers & Acquisitions, Valuation ofbusinesses etc. across various industries & sectors which includes SolarPlants, Waste Management, Helicopter felt, Oil and Gas, Mining,Energy, Healthcare,  Services & Education etc to evaluate the viability ofthe project on various parameters. Key Financial of Dabur: Objectives To find out intrinsic value of dabur and take decision regarding investment in Dabur. Plan of Work and Methodology Prepared a Sector Analysis Report for the FMCG sector †¢ Performed Historical Ratio Analysis of Dabur †¢ Prepared a Financial Model for Dabur by forecasting its financials for the next five years (FY13E-FY17E) on the basis of a historical trend analysis and expected performance of the FMCG industry drivers. †¢ Estimated a Target Price for the stock of Dabur using a DCF Valuation Model as well as using Relative Valuation by peer comparison. †¢ Submitted a final Equity Research Report on Dabur with recommendations. References and Bibliography www.investopedia.com www.rbi.org.in www.moneycontrol.com www.equitymaster.com www.bloomberg.com www.bseindia.com www.dabur.com www.wikipedia.org Nielsen FMCG industry report

The Role of Master in Commercial Law to Ship Operations for transportations of Goods by Seas. The WritePass Journal

The Role of Master in Commercial Law to Ship Operations for transportations of Goods by Seas. Introduction The Role of Master in Commercial Law to Ship Operations for transportations of Goods by Seas. IntroductionQ 1.Q.2Q.3BIBLIOGRAPHY: References fromRelated Introduction Q 1. As a Common Carrier the ship Owners/Master are absolutely responsible for the safe carriage of the Goods and for the delivery of a same, without un-reasonable delay, at the destination in the same Apparent Order and a Condition as was received. The contractual obligations of the Carrier, where in the an Owner/Master are responsible under the various governing Charter Party Terms and conditions would a be obliged to comply with the clauses of Carriage of a Goods under COGSA 71/92, Hague-Visby Rules. Lay can (Lay time and Cancellation)   it is the period where lay days commencement and a cancellation for an agreed terms and conditions of Cargo/Goods Transportation by Sea. Demurrage  Ã‚     is the monetary value payable to the owner of the ship for any delay or extra time the vessel would be kept under the charter for which the owner is not responsible in loading and/or discharging operation after the lay time period. On demurrage will mean that the lay time has expired and unless the charter party has at expressly provide to the contrary the time on demurrage will not be a subject to the lay time exceptions. Once on demurrage always on demurrage clause may apply. ‘’Reference from notes page 2 STC’’ Dispatch   it is the charges paid by the owner of the ship to the charter, a usually half of the demurrage rate, could be called as an incentive for a charterer to load and discharge faster a than lay time allowance. ‘’Reference from notes page 3 stc’’ ‘’Owners are obliged to exercise due a diligence to ensure that she is an sea worthy vessel at all the times of’’ As per the a Hague-Visby rules Article III with respect to the liability and responsibilities compensation the carrier is bound through out the voyage to an exercise of due diligence to make the vessel sea worthy and properly equipped, a manned and supply in stores the ship requires and the cargo spaces would be made fit for Cargo reception, a carriage and delivery. And as per the Article IV it states that a if the carrier is un liable for the loss or the damage resulting or arising due to un-sea worthiness at en-route unless caused by want of due diligence on the part of carrier to a make the accident in manner confronting with the of conditions. In paragraph 1 of Article III of â€Å"any damage or loss resulted from un-sea worthiness the burden of proving the exercise of due diligence will a be up to the carrier or those persons claiming exemption an under this article â€Å"college notes reference’ Reference from college notes page 1 , 2010 â€Å"carriage of goods by sea en acted 1971 and amended there on, applies to any contract, for COGSA in ships from a UK port which provides for the issue of a OBL or similar document of Title; any OBL’s if contract in or evidence by it expressly provides that the amended HRV shall govern the contract; any non-negotiable receipt, marked, if it expressly provides that the rules are to govern the contract as were an OBL†. â€Å" Article X says rules apply to every bill of lading relating to the carriage of goods between ports in two different states if, the bill is issued in a contracting state or; the carriage is from a port in contracting state; the contract contained in or evidence by the bill provides that the rules, or legislation of any state giving effect to them, are to govern the contract, whatever may be the nationality of the ship, the carrier, the shipper, the consignee, or any other interested person†. College notes Reference: hand out, STC â€Å"English law relating to bills of lading, rights and/or duties of the carrier, S1 (2) COGSA 1971 gives the force of a law to the HVR, as appended to the Act. Burden of proof un-seaworthiness – claimant as to a lack of seaworthiness of vessel at the relevant time (damage to cargo is prima facie evidence) claimant that un-seaworthiness a was proximate cause for damage to the goods, a rather than excluded peril. Carrier as to damage caused by excluded peril at sea. Carrier has duty of to due diligence had been fulfilled as per Article IV (1) HVR, carrier can a still claim ‘limitation of liability†Ã¢â‚¬  Rotterdam rule, Hamburg rule, Hague rules, review into HVR, a Hamburg rules would be applicable if Bill lading issued in the port of a contracting states Article X (a) as mentioned in the contracting agreement. In this case, the carrier because of a malfunction of statutory equipment probably makes the ship un sea worthy and henceforth the subjugated carrier liability and therefore there was a   breach of a contractual carriage under COGSA therefore vessel will be held liable responsible under Hague-Visby Rules III for damage of goods in clause. A Bills of lading in Original (OBL’) with out an endorsement by ship, the OBL now is a clean which entitles   a benefit or privilege to shipper receivers that goods are in good condition and same to delivered at the discharge port. The issue of clean OBL allows the charter/ receiver to pursue a claim against the carrier for the rusty pipes, and/or short landing of the cargo, because OBL are not appropriately remarked or re-written now says the cargo that is to be discharge at the Korean port would be in good condition, as per clean OBL’. LOI does not have court of law sustained. The G/C vessel Master should have brought Steel Pipes stained matter to the attention of the owner immediately, but his neglect or over look, has this mitigate in owners profit, restricts the ship owner from claiming any protection against the loss with respect to claim of the cargo which may arise. The master of the ship should have with due diligence requested the owner for a separate or independent surveyor to inspect the cargo loading operation. This could have saved the ship owner from the claims at future stages as legal aspects are taken care. Or the second option was the master should have clause the OBL, or should have recorded that the cargo was rusted supported, his statement with photographic evidence or note of protest with proofs and witness statement with letter of protest by Telex informing all parties concerned. During the survey at Port of Refugee (whilst Dry Docking) un seaworthiness were proved as vessel sailed with the Radar equipment not working, as per the SOLAS and the certification of statutory requirement this clearly indicates that the master and the owner choose not shown due diligence for compliance regulations. Company and master knew about the faulty Radar and in the later part one of the probable reason resulting in collision with container ship, the un seaworthiness of own ship may   deny the owner from General Average contribution from the owners of the cargo, if any jettison of undertaken, under P n I, H M covers. The container vessel which was short manned would also be under scanner before claims for as the both the vessels would to be blamed for the incidence that took place. The owners will be subject to the claims from the receivers/charterers, and both the vessels to be blamed for the accident and claim from ship owners been taken up and such claims for the damages from either ends and the case is in Arbitration for resolve and insurers. Reference from: The shipmasters business companion- Malcolm Mac Lachlan, 2004 edition Commercial Management Shipmasters- Robert L. Q.2 â€Å"Salvage involves the provision of services to maritime property in danger that result in the saving or partial saving of that property thus entitling the provider to a reward. Works under common law, statutory law, contract law† reference from hand out STC page 1 of 2010 â€Å"page 5 two types of agreement , one services rendered on the basis of ordinary tariff, fixed amount, daily rate, second is services rendered on the basis that remuneration will be settled later, whether by agreement or arbitration or court. LOF 2000, salvor may use SCOPIC clause, this agreement is made in easy manner, not likely to be disputed, no cure no pay, English Law applies, salvor will be awarded, underwriters liability can not be increased beyond that for total loss, excessive claims by salvors avoided. General Average â€Å"there is a GA when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure’’ reference from college notes STC page 2010 The jettison cargo on Container ship, sacrifice was intentional for preserving the property therefore she is eligible for General Average, the cost of the lost, damaged cargo claimed from the insurer as per prior agreed terms. Hull and Machinery will cover the loss incurred of the hull damaged which was caused because of collision if and so, as is an un intentional act and will come under Particular Average. If the master of both the ships have taken reasonable precautions then it would have been sufficient to mitigate the losses the ship owner. The company would have loss incurred due to salvage under LOF or daily hire, General   Average as far as it complies with clause, HM and P+I insurers would cover only their parts they are agreed upon. Where as the evidences has proved that the container vessel sailed in seaworthy condition but a day before the accident of their Sec/officer was evacuated on medical grounds and made short manned, which was un foreseen or un planned. This short manning has caused fatigue and might be resulted in the non compliance of STCW 95 chapter VIII and require to have an exemption certificate copy onboard prior arrival next port. Both the vessel has to exchange the particular information as per MSA 95 sec 92. Duty of ship to assist the other in case of collision. If Owner/master proves that she has exercised due diligence, will be paid by the cargo insurers of the shipper and if she has not done the same then will lieu under PA and the cargo insurer will be claimed against by the shipper cargo specific damage/ lost cargo who in turn will claim the same from the from P+I Swedish club or from the ship owner and the hull damage, will be covered by is 3/4th RDC by HM , and 1/4th by P+I reference from college handout Particular Average (PA) Losses caused by accident are said to lie where they fall viz., the owner of the property bears the loss, though cargo owners have right against carriers. Protection and Indemnity insurance provides their ship owners and charterers members with incident and claims handling services through a world wide network of correspondent. P and I clubs are those non profits making organization which is a joint venture between shipping companies; it offers the ship owners the coverage against the risks which are not covered by the Hull and Machinery. Hull and Machinery under writers under marine insurance act 1906 the principle would be insurable interest, utmost good faith, proximate cause, indemnity, subrogation. Insurance covers the hull and machinery of the insured ship against certain peril, clause as ‘inchmaree’ viz., peril of the sea, piracy, fire, 3/4th of run down clause, the ship owners proportion of salvage, ship owners contribution of GA. Q.3 Reference notes commercial management page 28 ‘‘Salvage in marine is a method used for rescuing a vessel, goods, or any ship property from peril. It encompasses rescue towing, re-floating a incident prone boat, or repairing a vessel, environmental protection as main motto due to from cargos’’. The positive aspects of LOF2000, it is a No Cure No Pay agreement and is not likely to be disputed and the disputes will be referred to arbitration. Negative point is could end up expensive. Time factor put the master in an defensive position or puts him in hesitant position to make a decision, so considering the safety of crew, environment, inform the owners and can go ahead with the LOF, where agreement can be sort by phone/vhf as well. In view of the incident the master of general cargo ship choose the LOF, which could be considered as a Right move for this scenario. And save a lot of time and further catastrophes. This has increase the percentage of positive out come in sights of crew safety and environment hazard, and property loss. Since own vessel due to collision had severe damage to hull and ingress of water. There was immediate requirement of assistance as there was threat to life, environment and property and limited time for negotiations/bargains. Vessels owner to be kept posted with all the developments by the masters of both vessels, while under salvage / towage. The container vessels decision to go for Daily hire is the probable most best suited towage option could be choose as her extent of damage is minor and had reasonable time for negotiations and select the best established salvor to have a safe operation. All entry formalities to be considered prior arrival to the port of refuge namely, Agents, Customs, Immigrations, PSC, P+I, Quarantine, ISPS, with all possible evidence regarding the incident. MAIB would be informed within 24 hours of arrival to port. Both the vessels were taken to port of refuge, and after a thorough inspection of repairs carry out the class and insurers would be issuing an interim certificate. All the necessary information of ship to send to the Owner and the Insurance company. Complete all the out ward clearance port formalities. Vessel’s can sail to the port of destination. BIBLIOGRAPHY: References from a) STC handout and materials b) The shipmasters business companion- Malcolm Mac Lachlana, 4th Ed 2004 c) Commercial Management Shipmasters- Robert L. tallacka. d) Shipping law by Chlorey Giless (8th edition) e) Business and Law for the Shipmasters by F.N.Hopkinns (7th edition). f) www.marine-salvage.com; marineclaimsconference.com/2010/index.html g) www.sailor today.com/maib.com