THE NEGOTIABLE INSTRUMENTS LAW

INTERPRETATION
Must be payable to order or to bearer. Must contain an unconditional promise or order to pay It must be in writing and signed by the maker or drawer Must be payable on demand, or at a fixed or determinable future time Where the instrument is addressed to a named or otherwise indicated therein with reasonable certainty.

What constitutes certainty as to sum
The sum payable is a sum certain within the meaning of this although it is to be paid With interest by stated installments by stated installments, with a provision that, upon default in payment of any installment or of interest, the whole shall become due with exchange, whether at a fixed rate or at the current rate with costs of collection or an attorney's fee, in case payment shall not be made at maturity.

Determinable future time; what constitutes
An unqualified order or promise to pay is unconditional within the meaning of this though coupled with An indication of a particular fund out of which reimbursement is to be made or a particular account to be debited with the amount

A statement of the transaction which gives rise to the instrument.
But an order or promise to pay out of a particular fund is not unconditional.

When promise is unconditional
An instrument is payable at a determinable future time, within the meaning of this Act, which is expressed to be payable On or before a fixed or determinable future time specified therein On or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain.

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Definition of Negotiable instruments

Definition of Negotiable Instruments:
The Word Negotiable Means Transferable By Delivery, Word Instrument Means A Written Document By Which Some Person Thus The Term Negotiable Instrument Literally Means A Written Document Transferable By Delivery According The Negotiable Instruments Act A Negotiable A Promissory Note Bill Of Exchange Payable Either More Or One Or Some Of Several Payees.

History
Common prototypes of bills of exchanges and promissory notes originated in China. Here, in the 8th century during the reign of they used special instruments the safe transfer of money over long distances. Later such document for money transfer used by Arab merchants, centuries bill of exchange and promissory note obtain their main features and further phases of its development have been associated with and Germany. In Exchange Law was different from continental Europe because of different legal systems

NEGOTIABLE INSTRUMENT
(a) Except as provided in subsections.
(c) And
(d) negotiable instrument means an unconditional promise or order to pay a fixed amount of money,
(1) is payable to bearer or to order, at the time it is issued or first comes into possession of a holder.
(2) is payable on.
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain.

Negotiation and endorsement
Persons other than the original obligor and obligee can become parties to a negotiable instrument. if the person who signs does so with the intention of obtaining payment of the instrument or acquiring or transferring rights to the instrument, the signature is called an endorsement (i) an undertaking or power to give, maintain, or protect collateral to secure payment. (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral. (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor. An endorsement which purports to transfer the instrument to a specified person is a special endorsement – for example an endorsement by the payee or holder which does not contain any additional notation thus purporting to make the instrument payable to bearer is an endorsement in blank. An endorsement which purports to require that the funds be applied in a certain manner is a restrictive endorsement; and an endorsement purporting to disclaim retroactive liability is called a qualified endorsement through the inscription of the words without recourse as part of the endorsement on the instrument or in allonge to the instrument. An endorsement purporting to add terms and conditions is called a conditional endorsement for example. (1) Forgery of the instrument. (2) Fraud as to the nature of the instrument being signed (3) alteration of the instrument (4) incapacity of the signer to contract (5) infancy of the signer (6) duress (7) discharge in bankruptcy and, (8) the running of a statute of limitations as to the validity of the.

Thus, for a writing to be a negotiable instrument under Article.

Objectives of Negotiable Instruments
· After studying this lesson, you will be able to.
· Explain the meaning of negotiable instruments.
· Identify the various features of negotiable instruments.
· Describe the various types of negotiable instruments.
· Differentiate between bills of exchange, promissory notes.
(a) Except as provided in subsections. (b) Instrument means a negotiable instrument. (c) An order that meets all of the requirements of subsection. (d) except paragraph. (e) and otherwise falls within the definition of "check" in subsection (f) is a negotiable instrument and a check. (g) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.

Thus, for a writing to be a negotiable instrument under Article

Features of Negotiable Instruments
After discussing the various types of negotiable instruments let us sum up their features. A when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty. But, such formalities are not required while transferring a negotiable instrument. The ownership is changed by mere delivery or by valid endorsement and delivery when payable to order. However, (i) The promise or order to pay must be unconditional. (ii) The payment must be a specific sum of money. (iii) The payment must be made on demand or at a definite time. (vi) The instrument must not require the person promising payment to perform any act other than paying the money specified. (vii) The instrument must be payable to bearer or to order.

The title of the receiver will be absolute, only if he has got the instrument in good faith and for a consideration. Also the receiver should have no knowledge of the previous holder having any defect in his title. Such a person is known as holder in due course. If Girish received it in good faith and for value and without knowledge of cheque having been stolen, he will be entitled to receive the amount of the cheque. Here Girish will be regarded as. A negotiable instrument must be in writing. This includes handwriting, typing, computer print out and engraving. In every negotiable instrument there must be an unconditional order or promise for payment. The instrument must involve payment of a certain sum of money only and nothing else. For example, one cannot make a promissory note on assets, securities, or goods. The time of payment must be certain. It means that the instrument must be payable at a time.

THE NEGOTIABLE INSTRUMENTS LAW
What constitutes certainty as to sum: The sum payable is a sum certain within the meaning of this Act, although it is to be paid. (a) At a fixed period after date or sight (b) On or before a fixed or determinable future time specified therein (c) On or at a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening be uncertain.

An instrument to be negotiable must conform to the following requirements: (a) It must be in writing and signed by the maker or drawer (b) Must contain an unconditional promise or order to pay a sum certain in money (c) Must be payable on demand, or at a fixed or determinable future time (d) Must be payable to order or to bearer (e) Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.

Essentials of a Promissory Note
1. It must be in writing
2. It must contain a Promise or undertaking to pay.
3. The promise to pay must be unconditional
4. It must be signed by the maker.
5. The maker must be a certain person.
6. The payee must be certain.
7. The sum payable must be certain.
8. The amount payable must be in legal tender money of india.
9. Other formalities.

Distinction between a pro note and a bill
1. Number of parties
2. The maker of note can not be the payee.
3. Promise to order
4. Acceptance
5. Nature of liability
6. Makers position
7. Payable of the bearer
8. Notice of dishonor
9. Applicability of certain Provisions.

Accommodation bill:
An accommodation bill is apparently quite similar to an ordinary trade bill of exchange, the special feature which distinguishes it from an ordinary bill is that such a bill is not supported by any consideration or a trading transaction. Thus the relationship between the drawer and the drawee is not that of a creditor and a debtor in the case of an accommodation bill.

Fictitious bill
When in a bill of exchange the name of both the drawer and the pave are fictitious the bill is said to be a fictitious bill Such a bill is drawn in a fictitious name and is made payable to the drawer’s and as such the name of both the drawer and the payee are said to be of a fictitious person

Documentary Bill
When documents relating to the goods represented by bill eg bill of lading or railway receipt invoice marine insurance policy etc are attached to bill is called is called a documentary bill such documents are delivered to the buyer only on acceptance or payment of the bill.

Special Benefits of Bill of Exchange
The special benefits of using bills of exchange in the world of commerce are as follows
1. A bill of exchange is a double secured instrument If the bill is dishonored by the acceptor, the holder or the payee may look to the drawer of the bill for payment.
2. In case of immediate need of money a bill can be discounted with a bank by the payee.
Tow separate trade debts can be discharged by a bill of exchange Hence where A busy goods on credit from B months after date and B buys goods on credit from C on similar terms for similar amount an order by B to A pay the sum of tow separate trade debts 

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Applicable of negotiable instrument in Bangladesh

AKNOWLEDGMENT

In this assignment provides the idea about in Applicable of negotiable instrument in Bangladesh. I’ve learn a lot of things about this topic doing this assignment.

So, I would like to thank our honorable teacher, I also want to thank him for her guidance in completion of this assignment.

At last but not least, I’m going to specially thank to Allah for giving us the capability in completing this assignment.

Definition of negotiable instrument:

A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. According to the Section of the Negotiable Instruments Act, in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. So, there are just three types of negotiable instruments such as promissory note, bill of exchange and cheque. Cheque also includes Demand.

More specifically, it is a document contemplated by a contract, which.

(1) warrants the payment of money, the promise of or order for conveyance of which is unconditional.
(2) specifies or describes the payee, who is designated on and memorialized by the instrument and.
(3) is capable of change through transfer by valid negotiation of the instrument.
As payment of money is promised subsequently, the instrument itself can be used by the holder in due course as a store of value although, instruments can be transferred for amounts in contractual exchange that are less than the instrument’s face value. Under United States law, Article of the Uniform Commercial Code as enacted in the applicable State law governs the use of negotiable instruments, except banknotes.

Classes:
Promissory notes and bills of exchange are two primary types of negotiable instruments.

Promissory note:
A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand to the payee, or at fixed or determinable future time, certain in money, to order or to bearer. Bank note is frequently referred to as a promissory note, a promissory note made by a bank and payable to bearer on demand.

Bill of exchange:
A bill of exchange or ‘draft’ is a written order by the drawer to the drawer to pay money to the payee. A common type of bill of exchange is the cheque check in American English, defined as a bill of exchange drawn on a banker and payable on demand. Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. Prior to the advent of paper currency, bills of exchange were a common means of exchange. They are not used as often today. A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to order or to bearer.

The person who draws the bill is called the drawer. He gives the order to pay money to the third party. The party upon whom the bill is drawn is called the drawee. He is the person to whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates his willingness to pay the bill. The party in whose favor the bill is drawn or is payable is called the payee.

It is essentially an order made by one person to another to pay money to a third person.
A bill of exchange requires in its inception three parties the drawer, the drawee, and the payee.
The partie’s need not all be distinct persons. Thus, the drawer may draw on himself payable to his own order.

A bill of exchange may be endorsed by the payee in favour of a third party, who may in turn endorse it to a fourth, and so on indefinitely. The ‘holder in due course’ may claim the amount of the bill against the drawee and all previous endorsers, regardless of any counterclaims that may have disabled the previous payee or endorser from doing so. This is what is meant by saying that a bill is negotiable.

In some cases a bill is marked ‘not negotiable see crossing of cheques. In that case it can still be transferred to a third party, but the third party can have no better right than the transferor.
Negotiable instruments distinguished from other types of contracts:
A negotiable instrument can serve to convey value constituting at least part of the performance of a contract, albeit perhaps not obvious in contract formation, in terms inherent in and arising from the requisite offer and acceptance and conveyance of consideration. The underlying contract contemplates the right to hold the instrument as, and to negotiate the instrument to, a holder in due course, the payment on which is at least part of the performance of the contract to which the negotiable instrument is linked. The instrument, memorializing.
(1) the power to demand payment and.
(2) the right to be paid, can move, for example, in the instance of a 'bearer instrument', wherein the possession of the document itself attributes and ascribes the right to payment. The consideration constituted by a negotiable instrument is cognizable as the value given up to acquire it benefit and the consequent loss of value detriment to the prior holder thus, no separate consideration is required to support an accompanying contract assignment. The instrument itself is understood as memorializing the right for, and power to demand, payment, and an obligation for payment evidenced by the instrument itself with possession as a holder in due course being the touchstone for the right to, and power to demand, payment. In some instances, the negotiable instrument can serve as the writing memorializing a contract, thus satisfying any applicable Statute of Frauds as to that contract. Certain exceptions exist, such as instances of loss or theft of the instrument, wherein the possessor of the note may be a holder, but not necessarily a holder in due course. Negotiation requires a valid endorsement of the negotiable instrument.

The holder in due course:
The rights of a holder in due course of a negotiable instrument are qualitatively, as matters of law, superior to those provided by ordinary species of contracts:

· The rights to payment are not subject to set off, and do not rely on the validity of the underlying contract giving rise to the debt for example if a cheque was drawn for payment for goods delivered but defective, the drawer is still liable on the cheque.

· No notice need be given to any party liable on the instrument for transfer of the rights under the instrument by negotiation. However, payment by the party liable to the person previously entitled to enforce the instrument "counts" as payment on the note until adequate notice has been received by the liable party that a different party is to receive payments from then on.

· Transfer free of equities the holder in due course can hold better title than the party he obtains it from as in the instance of negotiation of the instrument from a mere holder to a holder in due course

In addition, the rights and obligations accruing to the transferee can be affected by the rule of derivative title, which does not allow a property owner to transfer rights in a piece of property greater than his own.

Negotiation often enables the transferee to become the party to the contract through a contract assignment provided for explicitly or by operation of law and to enforce the contract in the transferee-assignee’s own name. Negotiation can be effected by endorsement and delivery order instruments, or by delivery alone bearer instruments.

In the Commonwealth:
In the commonwealth almost all jurisdictions have codified the law relating to negotiable instruments in a Bills of Exchange Act, Bills of Exchange Act in the UK, Bills of Exchange Act in New Zealand, The Negotiable Instrument Act in India and The Bills of Exchange Act in Mauritius. The Bills of Exchange Act:

1. defines a bill of exchange as: 'an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.
2. defines a cheque as: 'a bill of exchange drawn on a banker payable on demand'
3. defines a promissory note as: 'an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.'

Additionally most commonwealth jurisdictions have separate Cheques Acts providing for additional protections for bankers collecting unendorsed or irregularly endorsed cheques, providing that cheques that are crossed and marked 'not negotiable' or similar are not transferable, and providing for electronic presentation of cheques in inter-bank cheque clearing systems.

The Encyclopedia Britannica Eleventh Edition has a comprehensive article on the bill of exchange, detailing its history and operation, as understood at the time of its publication.

In the United States:

In the United States, Article and Article of the Uniform Commercial Code govern the issuance and transfer of negotiable instruments. The various State law enactments of Uniform Commercial Code
(a) through
(d) set forth the legal definition of what is and what is not a negotiable instrument

NEGOTIABLE INSTRUMENT.
(a) Except as provided in subsections
(c) and
(d) negotiable instrument means an unconditional promise or order to pay a fixed amount of money, with or 

without interest or other charges described in the promise or order, if it:
(1) Is payable to bearer or to order at the time it is issued or first comes into possession of a holder
(2) Is payable on demand or at a definite time; and
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain

(i) An undertaking or power to give, maintain, or protect collateral to secure payment,
(ii) An authorization or power to the holder to confess judgment or realize on or dispose of collateral, or
(iii) A waiver of the benefit of any law intended for the advantage or protection of an obligor.
(b) Instrument means a negotiable instrument.
(c) An order that meets all of the requirements of subsection
(a) Except paragraph
(1) And otherwise falls within the definition of check in subsection
(f) is a negotiable instrument and a check.
(d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.

Thus, for a writing to be a negotiable instrument under Article 3, the following requirements must be met:
1. The promise or order to pay must be unconditional
2. The payment must be a specific sum of money, although interest may be added to the sum
3. The payment must be made on demand or at a definite time
4. The instrument must not require the person promising payment to perform any act other than paying the money specified
5. The instrument must be payable to bearer or to order.
The latter requirement is referred to as the words of negotiability a writing which does not contain the words to the order of within the four corners The only exception is that if an instrument meets the definition of a cheque a bill of exchange payable on demand and drawn on a bank and is not payable to order then it is treated as a negotiable instrument. of the instrument or in endorsement on the note or in allonge or indicate that it is payable to the individual holding the contract document analogous to the holder in due course is not a negotiable instrument and is not governed by Article, even if it appears to have all of the other features of negotiability.

Negotiation and endorsement:
Persons other than the original obligor and obligee can become parties to a negotiable instrument. The most common manner in which this is done is by placing one's signature on the instrument endorsement if the person who signs does so with the intention of obtaining payment of the instrument or acquiring or transferring rights to the instrument, the signature is called an endorsement. There are five types of endorsements contemplated by the Code, covered in

· An endorsement which purports to transfer the instrument to a specified person is a special endorsement for example, Pay to the order of Amy

· An endorsement by the payee or holder which does not contain any additional notation thus purporting to make the instrument payable to bearer is an endorsement in blank or blank endorsement

· An endorsement which purports to require that the funds be applied in a certain manner for deposit only for collection is a restrictive endorsement and,

· An endorsement purporting to disclaim retroactive liability is called a qualified endorsement through the inscription of the words without recourse as part of the endorsement on the instrument or in allonge to the instrument.

· An endorsement purporting to add terms and conditions is called a conditional endorsement for example, Pay to the order of Amy, if she rakes my lawn next Thursday November The UCC states that these conditions may be disregarded.

If a note or draft is negotiated to a person who acquires the instrument

1. in good faith
2. for value
3. without notice of any defenses to payment,

The transferee is a holder in due course and can enforce the instrument without being subject to defenses which the maker of the instrument would be able to assert against the original payee, except for certain real defenses. These real defenses include

(1) forgery of the instrument
(2) fraud as to the nature of the instrument being signed
(3) alteration of the instrument
(4) incapacity of the signer to contract
(5) infancy of the signer
(6) duress
(7) discharge in bankruptcy; and
(8) the running of a statute of limitations as to the validity of the instrument.

The holder in due course rule is a rebut table presumption that makes the free transfer of negotiable instruments feasible in the modern economy. A person or entity purchasing an instrument in the ordinary course of business can reasonably expect that it will be paid when presented to, The foregoing is the theory and application presuming compliance with the relevant law. Practically, the obligor payor on an instrument who feels he has been defrauded or otherwise unfairly dealt with by the payee may nonetheless refuse to pay even a holder in due course, requiring the latter to resort to litigation to recover on the instrument.

and not subject to dishonor by, the maker, without involving itself in a dispute between the maker and the person to whom the instrument was first issued this can be contrasted to the lesser rights and obligations accruing to mere holders. Article of the Uniform Commercial Code as enacted in a particular State’s law contemplates real defenses available to purported holders in due course.

Applicable of negotiable instrument Bangladesh:
Every negotiable instrument shall be governed by the provisions of this Act, and no usage or custom at variance with any such provision shall apply to any such instrument.

A. notwithstanding anything contained in the Code of Criminal Procedure, 1898, no appeal against any order of sentence under sub-section

(1) of section shall lie, unless an amount of not less than fifty per cent of the amount of the dishonored cheque is deposited before filing the appeal in the court which awarded the sentence

Negotiable instrument solution in Bangladesh:
Now a day’s extra judicial killings news is very common in Bangladesh. Although, Killings by law enforcement agencies are common in Bangladesh. In, the paramilitary group Jatiya Rakkhi Bahini came into force and had become infamous for its extrajudicial executions until it was absorbed into the army in Now, since the formation of the elite Rapid Action Battalion in March, such killings are again on the rise and are being categorized under a new vocabulary of crossfire, extrajudicial killings, encounters. This extra judicial killings issue diminish public faith on judicial system of Bangladesh. Now people of Bangladeshis thinking that law enforcement agencies can do anything without justice.

In Bangladesh, the law says minimum force should be applied to arrests and every person has the right to seek a trial. In the cases of crossfire, and encounters, these legal provisions are being totally ignored.

Article of the constitution of Bangladesh states To enjoy and of every other person for the time being within Bangladesh, and in particular no action detrimental to the life, liberty, body, reputation or property of any person shall be taken except in accordance with law.” The constitution’s Article ensures the protection of the right to life and personal liberty in accordance with the law. Because of the consequences of such deprivation, the drafters of the constitution made this specific provision of protection even though these rights were already covered by Article. the protection of law, and to be treated in accordance with law, is the inalienable right of every citizen, wherever he may be, What is implicit in Articles and is the right to access to justice, and it cannot be said that this right has been dealt with in accordance with the law unless a person has a reasonable opportunity to approach the court in vindication of their right or grievance. Even a fugitive is entitled to a legal defence when the death penalty is involved. 

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In The Knowledge Fair

In The Knowledge Fair
A Presentation onForgery of Negotiable Instruments: Precautions to be taken for a secured business transaction

Objectives
Our object is to make you know:-
The meaning of forgery
Punishment of forgery
The forgery of negotiable instrument
What we should do to prevent forgery of the instruments
The meaning of negotiable instruments
The various features of negotiable instruments
The various types of negotiable instruments

Introduction to Negotiable Instruments:
A Negotiable Instrument is a document that meets the requirements for circulation without reference to other sources. The Negotiable Instrument Act, 1881 does not define negotiable instrument, it runs as to that “Negotiable Instrument” means Promissory Note, Bill of Exchange, or Cheque payable either to order or to bearer. Negotiable Instruments are certain types of written documents which are transferable, either by delivery or by endorsement, and are used in commercial transactions and monetary dealings.

Features of Negotiable Instrument:
1. It is easily transferable. It may be transferred by mere delivery in case of bearer instrument and by delivery and endorsement in case of order instrument.2. a holder of a negotiable instrument in due course, that is through full payment A major advantage of a Negotiable Instrument is its transferability, but sometimes transferability is not always characteristic of negotiability. A transferable instruments or goods may not be a negotiable instrument.3. and good faith shall not be liable to a third party having title thereto.

Promissory Note
A “Promissory Note” to order or to bearer. is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand to the payee, or at fixed or determinable future time, certain in money,
Parties to a Promissory Note
There are primarily two parties involved in a promissory note. They are-
i. The Maker or Drawer – the person who makes the note and promises to pay the amount stated therein.
ii. The Payee – the person to whom the amount is payable.

In course of transfer of a promissory note by payee and others, the parties involved may be -
a. The Endorser – the person who endorses the note in favour of another person.
b. The Endorsee – the person in whose favour the note is negotiated by endorsement.

Features of a promissory note
Let us know the features of a promissory note:
A promissory note must be in writing, duly signed by its maker and properly stamped.
It must contain an undertaking or promise to pay. Mere acknowledgement of indebtedness is not enough. For example, if someone writes ‘The promise to pay must not be conditional. For example, if it is written
It must contain a promise to pay money only. For example, if someone writes ‘I promise to give B a Maruti car’ it is not a promissory note. A promissory note may be payable on demand or after a certain date. For example, if it is written ‘three months after date I promise to pay S or order a sum of tk. Five Thousand only’ it is a promissory note.

The parties to a promissory note, i.e. the maker and the payee must be certain.
The sum payable mentioned must be certain or capable of being made certain. It means that the sum payable may be in figures or may be such that it can be calculated.

A Specimen of a Promissory Note
Bill of Exchange
A “Bill of Exchange” is an instrument in writing containing an unconditional order, signed by the maker, a certain person or to the bearer of the instrument. directing a certain person to pay on demand or at fixed or determinable future time a certain sum of money only to, or to the order of,

Parties to a Bill of Exchange
There are three parties involved in a bill of exchange. They are-
i. The Drawer – The person who makes the order for making payment.
ii. The Drawee – The person to whom the order to pay is made. He is generally a debtor of the drawer.
iii. The Payee – The person to whom the payment is to be made.

Features of a bill of exchange
Let us know the various features of a bill of exchange:
The order must be unconditional.
The order must be to pay money and money alone.
The sum payable mentioned must be certain or capable of being made certain.
A bill must be in writing, duly signed by its drawer, accepted by its drawee and properly stamped.
It must contain an order to pay. Words like ‘please pay tk. 5,000/- on demand and oblige’ are not used.
The parties to a bill must be certain.

Specimen of a Bill of Exchange
A “Cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

Features of a cheque
Let us look into some important features of a cheque.
A cheque must be in writing and duly signed by the drawer.
The payee is always certain.
It is always payable on demand.
The cheque must bear a date otherwise it is invalid and shall not be honoured by the bank.
It contains an unconditional order.
It is issued on a specified banker only.
The amount specified is always certain and must be clearly mentioned both in figures and words.

Specimen of a Cheque
Types of Cheque
Cheques are of four types, Let us know details about these cheques:
a) Open cheque: A cheque is called ‘Open’ when it is possible to get cash over the counter at the bank. The holder of an open cheque can do the following:
i. Receive its payment over the counter at the bank,
ii. Deposit the cheque in his own account
iii.Pass it to some one else by signing on the back of a cheque.
b) Crossed cheque: Since open cheque is subject to risk of theft, it is dangerous to issue
such cheques. This risk can be avoided by issuing another types of cheque called ‘Crossed cheque’. A cheque can be crossed by drawing two transverse parallel lines across the cheque, with or without the writing ‘Account payee’ or ‘Not Negotiable’. The payment of such cheque is not made over the counter at the bank. It is only credited to the bank account of the payee.
c) Bearer cheque: A cheque which is payable to any person who presents it for payment at the bank counter is called ‘Bearer cheque’. A bearer cheque can be transferred by mere delivery and requires no endorsement.
d) Order cheque: The payee can transfer an order cheque to someone else by signing his or her name on the back of it. An order cheque is one which is payable to a particular person. In such a cheque the word ‘bearer’ may be cut out or cancelled and the word ‘order’ may be written.

What is Forgery?
The creation of a false written document or alteration of a genuine one, with the intent to defraud is known as Forgery.

Common forgery usually involves manufacturing or tampering with documents for economic gain. Besides this Forgery consists of filling in blanks on a document containing a genuine signature, or materially altering or erasing an existing instrument. The intent to defraud remains essential.

According to sec.463 of Penal Code 1860,Whoever makes any false document or part of a document, with intent to cause damage or injury, to the public or to any person, or to support any claim or title, or to cause any person to part with property, or to enter into any express or implied contract, or with intend to commit fraud or that fraud may be committed, commits forgery.

An underlying intent to defraud, based on knowledge of the false nature of the instrument, must accompany the act.

Methods of forgery include handwriting, printing, engraving, and typewriting.
Instruments of forgery may include bills of exchange, bills of lading, promissory notes, checks, bonds, receipts, orders for money or goods, mortgages, discharges of mortgages, deeds, public records, account books, and certain kinds of tickets or passes for transportation or events.

Cases of Forgery:
Unauthorized use of seal: A, without Z's authority, affixes Z's seal to a document purporting to be a conveyance of an estate from Z to A, with the intention of selling the estate to B and thereby of obtaining from B the purchase-money. A has committed forgery.

By inserting amount on a blank Cheque:A picks up a cheque on a banker signed by B, payable to bearer, but without any sum having been inserted in the cheque. A fraudulently fills up the cheque by inserting the sum of ten thousand taka. A commits forgery.

By tampering of the number of the amount:A leaves with B, his agent, a cheque on a banker, signed by A, without inserting the sum payable and authorizes B to fill up the cheque by inserting a sum not exceeding ten thousand taka for the purpose of making certain payments. B fraudulently fills up the cheque by inserting the sum of twenty thousand taka. B commits forgery.

Cases of Forgery:
By defrauding the banker:A draws a bill of exchange on himself in the name of B without B's authority, intending to discount it as a genuine bill with a banker and intending to take up the bill on its maturity. B dishonestly erases the words "pay to Z or his order" and thereby converts the special endorsement into a blank endorsement. B commits forgery. Here, as A draws the bill with intent to deceive the banker by leading him to suppose that he had the security of B, and thereby to discount the bill, A is guilty of forgery.

By transforming a special endorsement into a blank endorsement: A endorses a Government promissory note and makes it payable to Z or his order by writing on the bill the words "pay to Z or his order" and signing the endorsement.

Punishment for forgery
According to section 465 of Penal Code, Whoever commits forgery shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Punishment if cheque dishonored
According to Sec.138 of Negotiable Instrument Act 1881,a person whose cheque is dishonored, shall be punished with imprisonment for a term which may extend to one year, or with fine which may extend to thrice the amount of the cheque, or with both.

Provided that nothing contained in this section shall apply unless- (a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier; (b) the payee or the holder in due course of the cheque, as the case may be, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, , and(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within thirty days of the receipt of the said notice.

Recommendations:
Precautions of banker against fraud and forgery of Cheque
Bank’s safeguard to protect a fraud and forgery are as follows:
Signature of the drawer: The instrument has to be signed by its drawer. Bank shall not pay the money, if the signature of drawer is not found.
Date: Date should be written in the right side of the cheque. If it is not written, incorrect or expired of 180 days, bank doesn’t pay the money.
Amount of money: The amount of money is to be written in figure and words; otherwise, the bank doesn’t pay money.
Similarity in word and figure: The amount mentioned in figure and word should be similar.
Account number: The banker should follow the account number whether it is right or wrong.
Similarities of the signature: The signature given by the drawer or account holder must be similar with the sample signature.
Bank and branch: Bank has to check the branch and bank name. If those are not correct, the bank must not pay the money.

Recommendations:
Genuine payee: The banker should check the identity of payee.
Accuracy of cheque drafting: Bank verifies whether the drafting is correct or not.
Legal notice: Bank should inquire whether there is any legal notice on the part of Drawer, Government or Court or not.
Drawer notice: If a drawer sends a notice against any Cheque then the cheque shouldn’t be paid.
Torn Cheque: The amount is not payable in case of a torn Cheque.
Endorsement: Banker should check the process of endorsement either it is legal or not.
Crossing in Cheques: Bank should be cautious about the Crossing of cheque. If a cheque is crossed then the amount mustn’t be paid directly.
Death of the customer: At the death of the customer, the bank doesn’t pay the cheque amount.
Stolen cheque: If it is proved that, the Cheque is stolen before, and then the cheque is dishonored.

Customers duty to prevent forgery
Customer of a bank owes a duty of care in drawing a cheque to take reasonable and ordinary precautions against forgery:
Store your checks, deposit slips, bank statements and canceled checks in a secure and locked location. Never leave your checkbook in your vehicle or in the open.
Reconcile your bank statement within 30 days of receipt in order to detect any irregularities. Otherwise, you may become liable for any losses due to check fraud.
Make sure your checks are endorsed by your financial institution and incorporate security features that help combat counterfeiting and alteration.
Never give your account number to people you do not know, especially over the telephone. Be particularly aware of unsolicited phone sales. Fraud artists can use your account without your authorization and you may end up being responsible.
Unless needed for tax purpose, destroy old canceled checks, account statements, deposit tickets, ATM receipts (they also frequently have your account number and worse yet, your account balance). The personal information on it may help someone impersonate you and take money from your account.

Customers duty to prevent forgery
When you receive your check order, make sure all of the checks are there, and that none are missing. Report missing checks to your bank at once, if any. And if you fail to receive your order by mail, alert your bank. Checks could have been stolen from mail box or lost in transient.

Never endorse a check until you are ready to cash or deposit it. The information can be altered if it is lost or stolen.

Don't leave blank spaces on the payee and amount lines.
Don't write your credit card number on the check.
Don't make a check payable to cash. If lost or stolen, the check can be cashed by anyone.

Thank You

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Case Study of Business Marketing

Ferguson Industry

1|why nwould sales vary so greatly for Gave’s company?
1|answer
ferguson industries is an industrial distributor’business was great this year for the family business a company that make small fans used to cool personal computers, the ssales vary so greatly for the company.In my opinion ,the company losed their sales earlier because they could not supply the products to the customers according to demand.

How can Ferguson Industries stabilize sales?
Answer:
Ferguson Industries can stabilize their sales by various ways. Then they can shift sales focus from attracting new customers to enticing your proven customer to buy again. If they start focusing their sales efforts on your proven customers, they may be able to increase or stable their spocket sales dramatically .and these sure ways to to increase sles will help build customer loyalyty too. Some ways they may apply to make the sales of the company more stabilize.They are

Set up a sales incentive program”
Gi

· Set up a customer rewards program :

We are all familiar with the customer rewards that so many large business have in place. But there’ s no reason that a small business can’t have a customer rewards program. too. It can be as simple as a discount on a customer’s birthday or as complex as a points system that earns various rewards such as discount on merchandise. Done right , rewards programs can really help build customer loyalty and stable sales. or even ,they can provide free samples to their customers.

1.2: Magnusson manufacturing
Question-1: what are some alternatives that sven should consider?
Answer: As the rivalry among the competitors is very strong in the market, It is obvious that any company should take alternative strategy to keep up their existence especially if the current practice does not work properly. Sven Givson needs to take alternative initiative to hire and train up new US sales people to entire this market, To sale the product ,marketing manager should consider alternative strategy for taking comparative advantage from the market.

Question 2: Discuss the factors that should affect decision, paying particular attention to the factors influencing the types of organization Magnusson should sell to or through?
Answer: Many factors that can be directly or indirectly effect on the decision and obviously decision has an effective impact on organization .As per the case situation, company should think about considering nature of market, buyers group, customer demand ,competitors activities, distributors and based on information how differently company can sell and ensure the post purchase service for the customers. And there is no option to make itself exceptional strategy to reach the maximum buyer group by utilizing local sales people in the new regional markert.

Decision. Incase study ,Wilson Puckett is the decision makers and his activities different from others.So it is specific as possible.. 

* * *

An application to the registrar of your university seeking permission to staging a drama of auditorium.

Subject: An application for staging drama

Sir,
On the behalf of the students of your university would like to draw your kind attention that. We are very interested. To stage a drama in our university auditorium. Two of our classmates are television artists. They will guide us. All the students are eagerly waiting for your permission.

I therefore pray and hope that you would be kind enough to permission for staging drama the auditorium and obediently thereby.

Your most obediently

Budgetary Control System

Budgetary Control System

Conclusion:
BRAC Bank maintains their budgetary control system and sometimes they review the actual income and expenses compared to the budget on a monthly basis. Their budgetary control system assists in setting up the goals and efforts are made for its achievements. They update their budget year by year.

Types of Budget There are many different types of budget:
Master Budget
A master budget is an overall financial and operating plan for a forthcoming calendar or fiscal year. It is usually prepared annually or quarterly. The master budget is really a number of sub budgets tied together to summarize the planned activities of the business. The format of the master budget depends on the size and nature of the business.

Sales Budget Sales budget an estimate of future sales. The sales manager is responsible for the accuracy of the budget. Sales budget may prepare on basis of product, types of customers, salesman, locality etc. For the preparation of sales budget past sales, salesman estimates, plant capacity, raw materials, order in hand, seasonal fluctuation etc should be taken under consideration. It is used to create company sales goals.

Production Budget Production budget an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. It is created by product oriented companies.

Cash Budget This budget is prepared to predict the inflow and outflow of cash during the budget period. In cash receipts consider cash sales, cash collections and other receipts. In cash payment considered cash payments, tax payable, dividend payable etc. A cash budget makes provisions for a minimum cash balance which will be available at all time.

Fixed Budget This is the rigid budget and it is drawn on the assumption that there will be no change in the budgeted time period. A fixed budget is helpful only when the actual level of activity is equal to budgeted level of activities.

Flexible Budget A flexible budget gives different budgeted costs for different levels of activities. This budget is applicable in where activity levels vary from period to period. Where the business is new and it is difficult to predict, where industry is influenced by change in fashion, where there are changes in sales.

Long term budget Long term budget are prepared for those organizations, which deal in regular product line. Here organizations are not supposed to change their proceedings in short time periods.

Short term budget Short term budget are prepared for small time periods which work for seasonal product line. Here product may change in near future.

Budgetary Control: Budgetary control is a control technique whereby actual results are compared with budgets. It relates to the establishment of budgets relating the responsibilities of budget holders the needs of a policy.

The budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise.

Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction

Budget:
Budget is a formal statement of the financial resources set aside for carrying out specific activities in a given period of time. It means an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

One of the most important administrative tools, a budget serves also as a
(1) Plan of action for achieving quantified objectives,
(2) Standard for measuring performance, and
(3) Device for coping with foreseeable adverse situations.

Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans.

While planning a budget can occur at any time, for many businesses, planning a budget is an annual task, where the past year's budget is reviewed.

Objectives of Budgetary Control System:
The main objectives of budgetary control are as follows:
- It coordinates the actions of various departments.
- Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise.
- It makes a prediction about capital expenditure for future.
- It helps in amending deviations from the established standards.
- It is essential for planning, controlling and also acts as an instrument of coordination.
- Budgetary control operates various cost centers and departments with efficiency and economy.
- It centralizes the control system.

Budgetary Control method: Like other organizations BRAC Bank also establishes and maintain budget. Budgetary control system help them planning, coordinating and controlling business decisions. A responsibility centre can be defined as any functional unit headed by a manager who is responsible for the activities of that unit. Budgetary control and responsibility centers enable managers to monitor organizational functions. There are four types of responsibility centre:

a) Revenue centre terms but are not directly compared to input costs.
b) Expense centre Units where inputs are measured in monetary terms but outputs are Organizational units in which outputs are measured in monetary not.
c) Profit centre Where performance is measured by the difference between revenues (outputs) and expenditure (inputs).
d) Investment centre Where outputs are compared with the assets employed in producing them.

BRAC Bank may apply the following characteristics in budget system:
a) Budget centre: A budget centre may encompass several cost centres. Units responsible for the preparation of budgets.
b) Budget committee: departmental heads and. Every part of the bank should be represented on the committee. This may consist of senior members of the bank, e.g. Functions of the budget committee include:  Coordination of the preparation of budgets, including the issue of a manual
 Issuing of timetables for preparation of budgets
 Comparison of actual results with budget and investigation of variances.
 Provision of information to assist budget preparations
c) Budget Officer: Controls the budget administration the job involves:  liaising between the budget committee and managers responsible for budget preparation
 dealing with budgetary control problems
 educating people about budgetary control.
 ensuring that deadlines are met
d) Budget manual: This document includes :  charts the bank
 clearly defines the responsibility of persons involved in the budgeting system.
 contains account codes for items of expenditure and revenue
 details the budget procedures
 timetables the process

Budgetary control System of BRAC Bank Ltd:
Organization Profile:
BRAC Bank Limited is one of the leading private banks in Bangladesh. BRAC Bank has received the commercial banking license from Bangladesh Bank in 2001. The head office of the bank is situated at Gulshan, Dhaka. BRAC Bank operating its business in whole Bangladesh. BRAC Bank is expanding its branch network rapidly throughout the country. Since then it has established its name and branding with its quality of service and products. In a very short time BRAC Bank became one of the successful and fastest growing private banks in Bangladesh. BRAC Bank is owned partially by BRAC, the largest non-government organization in the world, International Finance Corporation (IFC), the private sector arm of The World Bank Group, and Shore Cap International.

Currently, BRAC Bank has 100 Branches, 60 SME Service Centers, 3 SME/Krishi Branches, more than 300 ATMs and 424 SME Unit offices across the country. Among them, BRAC Bank is well known for its SME Banking in Bangladesh. BRAC Bank provides all sort of banking service to the mass people of Bangladesh.

Budget preparation BRAC Bank firstly, This is also known as the key budget factor or limiting budget factor and is the factor which will limit the activities of an undertaking. This limits output, e.g. sales, material or labour. determines the principal budget factor.

a) Sales budget: In sales budget BRAC Bank consider: company's pricing policy, after sales service, credit terms offered. general economic and political conditions, changes in the population, competition, consumers' income and tastes, advertising and other sales promotion techniques,

b) Raw materials and purchasing budget: Raw materials and purchasing budget include: production requirements, planning stock levels, storage space, trends of material prices.

c) Production budget: In production budget include: subcontract, plan for overtime, introduce shift work, hire or buy additional machinery, the materials purchases budget's both quantitative and financial.

d) Labour budget: This budget includes: grades of employee required, salary rates, and the need for incentives. production requirements, man-hours available,

e) Cash budget: Cash budget summarizes monthly receipts and payments. Hence, it highlights monthly surpluses and deficits of actual cash. Its main uses are: Receipts of cash may come from one of the following: cash sales, payments by debtors, the sale of fixed assets, the issue of new shares, the receipt of interest and dividends from investments. to maintain cash requirements, to show the feasibility of management's plans in cash terms, to illustrate the financial impact of changes in management policy, e.g. change of credit terms offered to customers.

Payments of cash may be for one or more of the following: purchase of stocks, payments of salaries or other expenses, purchase of capital items, payment of interest, dividends or taxation.

Committee Review& Final Approval:
Board meeting held and budget proposal and programmatic and fundraising assumptions are presented for approval. Staff meeting held to discuss budget, program goals and time line for new years. After preparing the budget the budget committee meets to review budget draft and assumptions and make recommendations.

***

Network design in the supply chain

The influencing factors in network design decision

Strategic Factors

A firms competitive strategy has a significant impact on network design decision

with in the supply chain. Firms that focus on cost leadership tend to find the lowest

Cost location for their manufacturing facilities, even if that means locating very far from the markets they serve. For example, in the early1980s, many apparel producers moved all their manufacturing out of the United States to countries with lower labor costs

in hope of lowering cost. With the drop in apparel quotas in 2005. Most of

Manufacturing is now moving to low-cost countries such as China.

. Offshore facility: low cost facility for export production . An offshore facility serves the of begin a low cost supply source for markets located outside the country where the facility located. The location selected for an offshore facility should have low cost labor and other cost to facility low cost production.

. Source facility: low cost facility for global production. A source facility also has low cost as it primary objective, but its strategic role is broader than that of an offshore facility. A source facility is often a primary source of product for the entire global net ratability low.

. Serve facility: regional product ion facility . A serve facility objective is to supply the market where is located. A serve facility is built because of tax incentives, local content requirement, tariff barriers, or high logistic cost to supply the region from elsewhere.

. Contributor facility: regional production facility with development skills, A contributor facility serves the market where it is focused but also assumes responsibility for Product customization, process improvement, product modification, or product

development.

. Outpost facility: regional production facility built to gain local skills, An outpost facility is located primarily to obtain access to knowledge or skills that may exist within

a certain region. Given its location, it also playes the role of server facility.

. Lead facility: facility that leads in development and process techniques. A lend facility crests new product, processes, and technology for entire network. Lead facility are located in areas with good access to a skilled workforce and technological resources.

The Role of network design decision in the supply chain management: Network design decision have a significant impact on performance because they determine the supply chain configuration and set constraints within which the other supply chain drivers can be used either to decrease supply chain cost or to made taking this fact into consideration. Decision concerning the role of each facility are significant because they determine the amount of flexibility the supply chain has in changing the way it meets demand.

Facility role: What role should each facility play? What processes should be performed at each facility?

Facility location: Where should facilities be located?

Capacity allocation: How much capacity should be allocated to each facility?

Market and supply allocation: What markets should each facility serve? Which supply sources should feed each facility.

Facility location decisions have a long term impact on a supply chain’s performance because it is very expensive to shut down a facility or move it to a different location. A good location decision can help a supply chain be responsive while keeping its costs low. Toyota, for example, built its first U.S. assembly plant in Lexington, Kentucky, in 1988 and has used to plant proved very profitable for Toyota when the yen strengthened and cars produced in Japan were too expensive to be cost competitive with cars produced in the united states. The Lexington plant allowed Toyota to be responsive to the u.s. market while keeping costs low.

In contrast, a poorly located facility makes it very difficult for a supply chain to perform close to the efficient frontier. For examole,Amazon.com found it very difficult to be costs effective in supplying books throughout the United states when it had a single warehouse in Seattle. As a result, the company has added warehouses in other parts of the country.

Capacity allocation decisions also have a significant impact on supply chain performance. Whereas capacity allocation can be altered more easily than location, capacity decisions do tend to stay in place for several years. Allocating too much capacity to a location results in poor utilization as a result, higher costs. Allocating too little capacity results in poor responsiveness if demand is not satisfied, or high cost if demand is filled from a distant facility.

The allocation of supply sources and markets to facilitates has a significant impact on performance because it affects total production, inventory and transportation costs incurred by the supply chain to satisfy customer demand. This decision should be reconsidered on regular basis so that the allocation can be changed as market condition or plant capacities change. Of course, the allocation of market and supply can only be changed if the facilities are flexible enough to serve different markets and receive supply from different sources. As we mentioned earlier,Amazon.com has built new ware houses and changed the market supplied by each ware houses as its customer base has grown. As a result it has lowered costs improved responsiveness.

Network design decision must be reviewed as a firm grows or when two companies merge. Because of the redundancies and differences in markets served by either the two sepoerate firms, consolidating some facilities and changing the location and role of others can often help reduce costs and improve responsiveness.

Macroeconomic Factors

Macroeconomic factors include taxes, tariffs, exchange rates, and other economic factors that are not internal to an individual firm. As global trade has increased, macroeconomic factors have had a significant influence on the success or failure of supply chain networks. Thus, it is imperative that firms take these factors into account when making network design decisions.

Technological factors

Characteristics of available production technologies have a significant impact on network design decisions. If production technology displays significant economies of scale, a few high capacity location are most effective. This is the case in the manufacture of computer chips, for which factories requires vary large investment. As result moist semiconductor companies build few high-capacity facilities.

In contrast, if facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs. For example, bottling plants for coca-cola sets up many bottling plants all over the world, its serving the its local market.

Flexibility of the production technology affects the degree of consolidation can be achieved in the network. If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up local facilities to serve the market in each country. Conversely, if the technology is flexible, it becomes easier to consolidate manufacturing in a few large facilities.

Tariffs and Tax Incentives

Tariffs refer to any duties that must be paid when products and/or equipment are moved across international, state or city boundaries. Tariffs have a strong influence on location decision within a supply chain. If a country has very tariffs, companies either do not serve the local market or set up manufacturing plants within the country to save on duties. High tariffs lead to more production locations within supply chain networks with each location having a lower allocated capacity. High tariffs lead to more production location within a supply chain network, with each location having a lower allocated capacity. As tariffs have come down with the World Trade Organization, and regional agreements such as NAFTA , EU, and MERCOSUR, firms can now supply the market within a country from a plant located outside that country without incurring high duties.

Tax incentives are a reduction in tariffs or taxes that countries, states, and cities often provide to encourage firms to locate their facilities in specific areas. Many countries vary incentives from city to city to encourage investments in areas with lower economic development.

Political Factors

The political stability of the country under consideration plays a significant role in location choice. Companies prefer to locate facilities in politically stable countries where the rules of commerce and ownership are well defined. Countries with independent and clear legal system allow firms to feel that they have resources in the courts should they need it. This makes it easier for companies to invest in facilities these countries.

Exchange Rate and Demand Risk

Fluctuation in exchange rates are common and have a significant impact on the profits of any supply chain serving global markets. For example, the dollar fluctuated between 102 and 132 yen in the three years from 2002 to 2004. A firm that sells its products in the United States with production in japan is exposed to the risk of appreciation of the yen.

Exchange rate risks may be handled using financial instruments that limit, or hedge against, the due to fluctuations. Suitably designed supply chain networks, however, offer the opportunity to take advantage of exchange-rate fluctuations and increase profits. An effective to this is to build some overcapacity into the network and make the capacity flexible so that it can be used to supply different markets. This flexibility allows the firm to react to exchange-rate fluctuations by altering production flows within the supply chain to maximize profits.

Infrastructure Factors

The availability of good infrastructure is an important prerequisite to locating a facility in a given area. Poor infrastructure adds to the cost of doing business from a given location. Global companies have located their factories in China and near Shanghai, Tianjin, or GuangZhuo-even though these locations do not have the lowest labor or land cost-because there is good infrastructure at these locations.

Competitive Factors

Companies must consider competitors strategy, size, and location when designing their supply chain networks. A fundamental decision firms make is whether to locate their facilities close to competitors or far from them. The form of competition and factors such as raw material or labor availability influence this decision.

Positive Externalities Between Firms

Positive externalities are instances where the collocation of multiple firms benefits all of them. Positive externalities lead to competitors locating close to each other. For example, gas station and retail stores tend to locate close to each other because doing so increase the overall demand, thus benefiting all parties.

Locating to Spilt the Market

When there no positive externalities, firms locate to be able to capture the largest possible share of the market. A simple model first proposed by Hotelling explains the issues behind this decision. When firms do not control price but compete on distance from the customer, they can maximize the market share by locating close to each other and splitting the market. Consider a situation in which customers are uniformly located along the line segment between 0 and 1 and two firms compete based on their distance from the customer.

Logistics and Facility Costs

Logistics and facility costs incurred within a supply chain change as the number of facilities there location, and capacity allocation is changed. Companies must consider inventory, transportation, and facility costs when designing their supply chain networks.

Inventory and facility cost increase as the number of facilities in a supply chain increase. Transportation costs decrease as the number of facilities is increased. If number of facilities increase to a point where inbound companies economies of scale are lost, then transportation cost increases.

The supply chain also networks design is also influenced by the transportation occurring at each facility. When there is a significant reduction in material weight or volume as a result of processing, it may be better to locate facilities closer to the supply sources rather than the customer.

Total logistics costs are a sum of the inventory, transportation, and facility costs. The facilities in a supply chain network should at equal the number that minimize total logistics cost. A firm may increase the number of facilities beyond this point to improve the response time to its customers. This decision is justified if the revenue increase from improve response outweighs the increase cost from additional facilities.

Framework for network design decisions:

The goal when design supply chain network is to maximize the firm’s profit while satisfying customer needs in terms of demand and responsiveness. To design an effective network a manager must consider these factors given below:

· Phase: I Supply chain strategy

· Phase: II Regional facility configuration

· Phase: III Desirable sites

· Phase: IV Location choices

Phase I: supply chain strategy/ Design:

The objective of the first phase of network design is to define a firm’s broad supply chain design. This includes determining the stages in supply chain and whether each supply chain function will be performed in-house or outsourced.

Phase I starts with clear definition of the firm’s competitive strategy as the set of customer needs that the supply chain aims to satisfy. The supply chain strategy then specifies what capabilities that supply chain network must have to support the competitive strategy. Next, managers must forecast the likely evolution of global competition and weather competitors in each market will be local or global players. Managers must also identify constraints on available capital and weather growth will be accomplished by acquiring existing facilities, or partnering.

Based on the competitive strategy of the firm, its resulting supply chain strategy, an analysis of the competition, any economics of scale scope, and any constraints managers must determine the supply chain design for firm.

Models for facility location and capacity allocation:

A manager’s goal when locating facilities and allocating capacity should be to maximize the overall profitability of the resulting supply chain network while providing customers with the appropriate responsiveness. Revenue comes from the scale of product, whereas cost arise from facilities, labor, transportation, material and inventories. The profits of the firm are also affected by taxes and tariffs. Ideally, profits after tariffs and taxes should be maximized when designing supply chain network.

A manager must consider many tread-offs during network design. For example, building many facility to serve local markets reduces transportation cost and fast response time, but it increases the facility and inventory cost incurred by the firm.

Managers use network design models in two situations. First these models are used to decide on locations where facilities will be established and the capacity to be assigned to each facility. Managers must make this decision considering a time horizon over which locations and capacities will not be altered (typically a years). Second, these models are used to assign current demand to the available facilities and identify lanes along which product will be transported. Managers must consider this decision at least on an annual basis as demand, prices, exchange rates, and tariffs change. In both cases the goal is to maximize the profit while satisfying customer needs. The following information ideally is available in making the design decision:

· Location of supply sources and markets

· Location of potential facility sites

· Demand forecast by market

· Facility, labor, and material cost by sites

· Inventory costs by site and as a foundation of quantity

· Sale price of product in different regions

· Taxes and tariffs

· Desired response time and other services factors

Given this information, either gravity models or network optimization may be used to design the network.

Phase II: The regional facility configuration

The objective of the second phase of network design is to identify regions where facilities will be located, their potential roles, and their approximate capacity.

An analysis of phase II starts with a forecast of the demand of the country. Such a forecast must include a measure of the size of the demand as well as determination of whether the customer requirements are homogenous or variable across different countries. Homogenous favor large consolidate facilities, whereas requirements that vary across countries favor smaller, localize facilities.

The next step is for managers to identify whether economics of scale or scope can play a significant role in reducing costs, given available production technologies. If economics of scale or scope are significant, it may be better to have few facilities serving many markets.

Next, managers must identify demand risk, exchange-rate risk, and political risk associated with regional markets. They must also identify regional tariffs any requirements for local production, tax incentives and any export or import restriction for each markets. The tax and tariff information is to identify the best location to extract a major share of profits. In general, it is best to obtain the major share of profits at the location with lowest tax rate.

Managers must identify competitors in each region and make a case for whether a facility needs to be located close to or far from a competitor’s facility. The desired response time for each market and logistics costs at an aggregate level in each region must also be identified.

Based on all this information, managers identify the regional facility configuration for the supply chain network using network design models. The regional configuration defines the approximate number of facilities in the network, regions where facilities will be set up, and whether a facility will produce all products for a given market or a few products for all markets in the network.

Phase III: Desirable sites

The objective of Phase III is to select a set of desirable potential sites within each region where facilities are to be located. Sites should be selected based on an analysis of infrastructure availability to support the desired production methodologies. Hard infrastructure requirements include the availability of supplier, transportation services, communication, utilities, and warehousing infrastructure. soft infrastructure requirements include the availability of skilled workforce, workforce turnover, and the community receptivity to business and industry.

Phase IV: Location choices

The objective of Phase IV is to select a precise location and capacity allocation for each facility. Attention is restricted to the desirable potential sites selected in phase III. The network is designed to maximize total profits taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and tariffs at each location.

The role of IT in network design:Even though it may seem at first glance that the strategic nature of the network design problem makes information technology systems less valuable,good IT systems can significantly improve the capability of network designer.For much larger problems,there are four ways that an IT system can help with network design relative to the use of a general purpose tool such as Excel.

1. A good network design system makes the modeling of the network design problems much easier than in a general purpose tool such as Excel.These applications have many built-in tools that facilitate an accurate description of a large supply chain network and incorporate realistic features that would be time consuming and difficult to built in Excel.

2. An IT system contains high performance optimization tchnologies,which deliver a high quality solution for large problems for a resonable amount of time.Although Excel’s solver can be upgrated,there are many cases in which the size and complexity of the optimization require a more spohisticated system that a network design application can provide.

3. Agood network design application also allows for an analysis of various “what if”scenarios.Given the uncertainty associated with forecasts,the ability to evaluate network designs in a variety of scenarios is a very powerfull tool for a designer.A network designer may find it much more appropriate to select a design that gives very good costs in many likely scenarios rather than a design that is optimal in one scenario but very poor in another.The ease of modeling and speed of solution allows a good network design application to facilitate what if analysis to a far greater extent than a general purpose tool such as Excel.

4. Finally,network design applications are structured to interface easily with the planning and operational software used by firms which contain much of the actual data required for network design.the ease of interface with the data source speeds up the creation and solution of a network design model.

In summary ,although network design is an area that is not as closely tied to IT as many other supply chain areas we discuss,it is nonetheless one that can benefit from the power of IT at relatively little cost.

***

Telephone Network

Connection between Mobile to Telephone Network

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The telephone network is the network of the world's public circuit-switched telephone networks. These standards allow different networks in different countries tointerconnect seamlessly. There is also a single global address space for telephone numbers based on the E.163 and E.164 standards. Originally a network of fixed-line analog telephone systems, the PSTN is now almost entirely digital in its core and includes mobile as well as fixedtelephones.

The technical operation of the PSTN utilizes standards created by the ITU-T. It consists oftelephone lines, fiber optic cables, microwave transmission links, cellular networks, communications satellites, and undersea telephone cables, all inter-connected by switching centers, thus allowing any telephone in the world to communicate with any other. The combination of the interconnected networks and the single numbering plan make it possible for any phone in the world to dial any other phone.

Mobile Network :
A mobile network is a radio network distributed over land areas called cells, each served by at least one fixed-location transceiver known as a cell site or base station. When joined together these cells provide radio coverage over a wide geographic area. to communicate with each other and with fixed transceivers and telephones anywhere in the network, This enables a large number of portable transceivers (mobile phones.) via base stations, even if some of the transceivers are moving through more than one cell during transmission.

Cellular networks offer a number of advantages over alternative solutions:

§ increased capacity

§ reduced power use

§ larger coverage area

§ reduced interference from other signals

Mobile To Telephone Network depends on three things:

§ A billing relationship with a mobile phone operator. This is usually either where services are paid for in advance of them being consumed (prepaid), or where bills are issued and settled after the service has been consumed (postpaid) to Telephone.

§ A mobile phone that is GSM compliant and operates at the same frequency as the operator. It passes the signal and telephone network captured it to itz own operator.

§ A Signal are passes network to network in the mobile phone without wiring and telephone system used some time time wiring to adjacent the call.

Mobile Outgoing to Telephone
Once a mobile phone has successfully attached to a GSM network as described above, calls may be made from the phone to any other phone on the global Telephone Network.

The call setup request message is handled next by the Mobile Switching Center, which checks the subscriber's record held in the Visitor Location Register to see if the outgoing call is allowed. If so, the MSC then routes the call in the same way that a telephone exchange does in a fixed network.

The user dials the telephone number, presses the send or talk key, and the mobile phone sends a call setup request message to the mobile phone network via the nearest mobile phone base transceiver station (BTS).

If the subscriber is on a prepaid tariff (sometimes known as Pay As You Go (PAYG) or Pay & Go), the call is rejected. If the call is allowed to continue, then an additional check is made to see if the subscriber has enough credit to proceed. If not, then it is continually monitored and the appropriate amount is decremented from the subscriber's account. When the credit reaches zero, the call is cut off by the network. The systems that monitor and provide the prepaid services are not part of the GSM standard services, but instead an example of intelligent network services that a mobile phone operator may decide to implement in addition to the standard GSM ones.

Incoming calls
When someone places call Telephone to a mobile phone, they dial the mobile number (also called a MSISDN) associated with the mobile user and the call is routed to the mobile phone operator's Gateway Mobile Switching Centre. The Gateway MSC, as the name suggests, acts as the "entrance" from exterior portions of the Public Switched Telephone Network onto the provider's network.

As noted above, the phone is free to roam anywhere in the operator's network or on the networks of roaming partners, including in other countries. So the first job of the Gateway MSC is to determine the current location of the mobile phone in order to connect the call. It does this by consulting the Home Location Register (HLR), which, as described above, knows which Visitor Location Register (VLR) the phone is associated with, if any.
How speech is encoded during mobile to Telephone calls

During a GSM call, speech is converted from analogue sound waves to digital data by the phone itself, and transmitted through the mobile phone network by digital means. (Though older parts of the fixed Telephone Network may use analog transmission.)

The digital algorithm used to encode speech signals is called a codec. The speech codecs used in GSM are called Half-Rate (HR), Full-Rate (FR), Enhanced Full-Rate (EFR) and Adaptive Multirate (AMR). All codecs except AMR operate with a fixed data rate and error correction level.

How Data transmitted mobile to Telephone Network
The GSM standard also provides separate facilities for transmitting digital data. This allows a mobile phone connect to telephone network act like any other computer on the Internet, sending and receiving data via the Internet Protocol.

The mobile may also be connected to a desktop computer, laptop, or PDA, for use as a network interface (just like a modem or Ethernetcard, but using one of the GSM data protocols described below instead of a PSTN-compatible audio channel or an Ethernet link to transmit data). Some GSM phones can also be controlled by a standardised Hayes AT command set through a serial cable or a wireless link (usingIRDA or Bluetooth). The AT commands can control anything from ring tones to data compression algorithms.
***.

ENVIRONMENTAL ACCOUNTING

ENVIRONMENTAL ACCOUNTING: now a vibrant issue in the world. 15th Armament of Bangladesh in the world marketing of socialize 15th amyment system the career.

Generations ago few people were only aware of economics beyond their own jobs and expenses on environment. As a result, Our planet is in great danger. Facing the modern age, the world is dealing with a lot of problems, such as global warming, water pollution, air pollution, imbalance of ecology etc. To eliminate this kind of problems and to keep our environment green, Environmental Accounting has introduced as an important tool and for this purpose, Since 1998, the United Nations (UN) and other international institutions have taken additional steps to support the development of environmental accounting and it first practiced in Norway.

Environmental Accounting also referred as green accounting which working as a tool to measure the economic efficiency of environmental conservation activities and the environmental efficiency of the business activities of the company as a whole.

The relationship between the environment and economy is close and mutually beneficial. As the Environmental Accounting benefits the company so does it benefits environment. Implementing Environmental Accounting of results in increase in awareness among business, stakeholders and society as a whole. It helps to build an environment friendly business culture

Now the countries like Australia, France, China, Namibia, Mexico, Germany etc has introduced Environmental Accounting. Unfortunately in Bangladesh the Environmental Accounting has been ignored for a long time. In the changing circumstances of global climate it is high time that we wake up and recognize the contribution of the environment to sustain our economy .

As recommendation, Environmental bodies and scientists should develop a standard to guide different practices of environmental accounting and should be encouraged by management and official authorities at all levels. We think it should be definitely made compulsory or at least companies should produce environmental statements within their annual reports.

THANK YOU FROM ECLIPSE
As the Environmental Accounting benefits the company so does it benefits environment. Implementing Environmental Accounting of results in increase in awareness among business, stakeholders and society as a whole.15th Armament of Bangladesh in the world marketing of socialize 15th amyment system the career. As a result, Our planet is in great danger. Facing the modern age, the world is dealing with a lot of problems, such as global warming, water pollution, air pollution, imbalance of ecology etc.

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