ACKNOWLEDGEMENT First and foremost, my thanks go to the Almighty God whom has kept me safe strong during the

period on my internship Special thanks go to my supervisor Mr. Cyprian KANANURA (DAF COOJAD) for his guidance, and the time he sacrificed for me; without him, this work would not have been possible. My sincere thanks go to KIGALI INDEPENDENT UNIVERSITY (ULK), especially the Faculty of Economic Sciences and Management, Department of MANEGEMENT for the knowledge and skills I acquired from them. My thanks go to entire Staffs of COOJAD for assistance they rendered to me by the way of providing necessary information I wish to acknowledge the love and endless support of my Family especially my brother Evalde NDABIKUNZE and his wife Esperence UWANYIRIGIRA, toward the fulfillment of my academic obligations. I highly appreciate UWIKUNDA Manasses family, MUKAMA Josephs family, for their encouragement, prayers during my studies. I also express my thanks to all my friends: NDAHIRO R. Olivier, NDIKUMANA RUTAYISIRE Eric, KANANURA G. Credo, NDIZEYE Gisele, UWIMANA Felicit, MUSANIWABO Flora, NKOTANYI Benito, and all my Classmates for their contribution in one way or another towards the fulfillment of my academic obligations.

LIST OF ABREVIATIONS, ACRONYMS AND SYMBOLS AF AMIR BNR COOJAD ICI MINICOM OD ULK : Administration and Finance :Association of Micro-finance Institutions in Rwanda : Banque Nationale du Rwanda (National Bank of Rwanda) : Cooprative de la Jeunesse pour lAuto-Emploi et le Dveloppement : Internal Control and Inspection : Ministre du Commerce and de lIndustrie (Ministry of Trade and Industry) : Operations Department : Universit Libre de Kigali (Kigali Independent University)

MINEDUC : Ministre de lEducation (Ministry of Education)

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TABLE OF CONTENTS ACKNOWLEDGEMENT ............................................................................................................I

1.4 METHODOLOGY...................................................................................................................................................2

3.3.1 Definition.........................................................................................................................12

ABSTRACT The Government of Rwanda through the Universities and Institutes of Higher Learning requires every undergraduate student to undergo an Industrial training as a prerequisite to being awarded a bachelors degree. This is aimed at ensuring sustainability and production of skilled personnel.

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It is in this respect that the Kigali Independent University (ULK) approached different Public and Private Institutions to assist, give opportunity of putting theory learnt for four years into practice. This area of learning provides a set of essential concepts in the working environment and empowers students to explore necessary principles to solve problems related to such environment. It is from this concept that I conducted my Industrial training in Finance and Administration of COOJAD. I had the opportunity to pass through all other departments of the organisation though I concentrated more in the Administration and Finance Department. During the exercise, I was able to discuss with different staff in different departments and I was also allowed to practically do the work from their desks of operation. Administration and Finance staffs have different tasks to perform and on top of normal office work, there are several other tasks done on the field by visiting members (clients) in order to finance their projects/providing loans to them. This is normally done according to their monthly schedules. So in addition to office work trainings, the trainee had to visit different members/clients on the field and learn how to measure their creditworthiness.

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CHAPTER I: GENERAL INTRODUCTION 1.1 BACKGROUND Industrial training is an exercise that puts in relation the theory and the practice. It is a process of practically teaching the skills of a particular job or activity to the trainee. Industrial training for all final year students is under the policies of the Government of Rwanda through the Ministry of Education (MINEDUC), and all the Universities and Higher Institutes of Rwanda have got to implement it. Kigali Independent University (ULK) designed an academic programme requiring final year students to undergo an industrial training (stage) as partial fulfilment of the requirements for award of degree/ licence. The training exposes the student to the activities being carried out in the field of employment upon the completion of studies. All final year students in Management were scheduled to begin their industrial training in the month of September 2011 for duration of two months. A part from the training, every student is required to carry out research on a relevant topic of interest. I chose to carry out my Internship from COOJAD (Cooprative de la Jeunesse pour lAuto emploi et le Dveloppement). As well as, after successfully completing the industrial training, a report is required; I wrote this report to simply give an overview of the work practiced in various duties in COOJAD specifically in Administration and Finance Department. This chapter sets out to present the aim of the training, general and specific objectives of the industrial training, methodology used, limitations encountered, and overview/ organisation of the report. I hope that, it will allow the more better to understand readers the functioning of certain services of the COOJAD, essentially those that are loaded with the activities of management of the flow and the services in charge of the operations of opening of the accounts, payments, money collection, money transfer and others.

1.2. AIM OF THE FIELD WORK The aim was to apply the theoretical knowledge and concepts acquired during four years of under-graduate Bachelors degree in Faculty of Economic Sciences and Management, Department of Management at ULK and embark on this training programme that entailed my active participation in preparatory office practice. It helps the student to find out the problems met in the field, and establish the relationship between the theory work acquired in school and the practical work. The experience enhanced my applicability of the theoretical conceptions. 1.3 OBJECTIVES OF INDUSTRIAL TRAINING 1.3.1 General objective of the training Industrial training has the general objective of enabling the students to use theoretical knowledge learnt in the courses related to functions/ activities on the field in order to evaluate (appreciate) the institution in which the student is undergoing his/her training. 1.3.2 Specific objectives of the training To avail knowledge and experience to students in any relevant areas of their options. To apply the knowledge learned in the university on the ground/field. To acquire skills needed to become a practical oriented manager. To gain interpersonal skills that promote personal growth and strengthening work values through improved understanding of work environment. 1.4 METHODOLOGY 1.4.1 Introduction This part deals with how data was collected. The methodology used to achieve the stated objectives included participatory approach, observation, interviews, documentation and swotanalysis. 1.4.2 Participatory Approach This is one of the methods used while carrying out the training to collect data. Under this method, the trainee was assigned to participate in the day to day activities with the officials in the Administration and Finance Department; therefore, this enabled the industrial trainee to get the necessary data. 1.4.3 Observation This method helped the internee to get the first hand information on the employees reaction to different practices in the institution, by observing and analysing the actions. The trainee had to observe the way things were done and the technique of working in some departments visited 2

and where necessary some notes were taken. In addition the participatory technique assisted a lot whenever I would work with the officials while observing. This is the most reliable method of data collection especially in institutions requiring the researcher to record the most sensitive information that cannot be obtained by any other method. Some of the information gathered through this technique included: Employees commitment to work. Relationship between employees and their superiors including their social interactions. People (clients/members) reactions towards the services rendered by the Cooperative.

1.4.4 Interviews In the interview method, the trainee had to organise face-to-face conversations with the employees on particular topics of interest. Having been attached to the Administration and Finance Department, the trainee interviewed different professionals, and even professionals from other departments on the problems encountered in the process of executing their duties to address the problem. Administration and Finance Department staff and other concerned personnel such as Auditor, Accountants and Branch Manager were all asked how budgetary control, human resource management and accounting system help in the performance of the COOJAD. Under this method, personal interaction with the staff members for clarification of the available data was conducted. 1.4.5 Documentation To get desired information was very easy because COOJAD have all necessary records of their activities and reports. All of the departments have the already made reports and documentaries outlining their functions, policies, and strategies, which the trainee used to do the work sufficiently.

CHAPTER 2 . PRESENTATION OF INTERNSHIP COMPANY 2.1 General Background of COOJAD COOJAD is a youth cooperative of savings and credit which has its headquarters in the District of Gasabo, Remera sector. His office is located in the buildings of the Amahoro Stadium in Remera. COOJAD was designed in part to serve as a channel that the State of Rwanda and the Donors can use to support young entrepreneurs in profit making activities. The Cooperative was set up by the Youth Associations of the City of Kigali in collaboration with the City of Kigali (VK), the National Youth Council of Rwanda (NYCR) and the Ministry of Youth, Sport and Culture (MIJESPOC). It is a cooperative which has officially recognized by MINICOM and BNR. It opened its doors dated 30/4/2007. COOJAD is a Microfinance Institution and collaborate with other intermediaries who struggle against poverty by financing the good profit making projects on reasonable interest rates. 2.2. Members of the COOJAD COOJAD has two categories of members, namely the founder members and other members. The founder member is any person who has participated in the creation of the COOJAD and who signed his status at its Constituent General Assembly held on 26/5/2006.All members must be adults people. To join COOJAD is voluntary, only you pay 10,000 Frw for one share and 3,000 Frw for bankbook to become a member. 2.3. Geographical location COOJAD, a Youth Cooperative, is working as Microfinance Institution with different four agencies, which are BUGESERA, GAHANGA and NYABUGOGO. Its head-quarter is located in Kigali city, Gasabo district more precisely in Remera, AMAHORO Stadium. 2.4. Organization profile This tries to explain COOJAD in brief by explaining and indicating its mission statement, vision and objectives. COOJAD is a microfinance institution for youths and people who want to join. This cooperative provides services (credit and serving), works with the poor, people with small capital, vulnerable group especially women, jobless people and small enterprises, through small credits to less interest rate. COOJAD has committed and skilled staffs that are passionate about improving the standard of living of Rwandan poor, including young people who form 70% of total population of Rwanda. 4

2.4.1. Mission statement COOJAD has the mission of delivering financial services (credits and servings) to the Rwandese especially youth, poor and Women through development of sustainable micro and small scale enterprises. 2.4.2. Vision The vision of the company (COOJAD) is see growing talent of young entrepreneurs in near future, total transformation of standard of living for Rwandese/to increase their purchasing power, the promotion of self employment creation to eradicate poverty. 2.4.3. Objectives of COOJAD 1. To develop COOJAD into a sustainable microfinance institution. 2. To promote savings culture and the utilization of credit as instrument of fight against poverty; 3. To develop products and services for clients who are business oriented 4. To provide financial services to rural and urban areas; 5. To promote self employment creation and increase income through sustainable and stable micro-enterprise. 6. To strengthening entrepreneurship through members capacity.

ORGANIGRAMME DE LA COOJAD
Assemble Gnrale Comit de Surveillance Conseil dAdministration

Direction Gnrale

Secrtariat de Direction

Direction Administrative et Financire

Direction dInspection et Contrle Interne

Direction des Oprations

Service Gestion des Ressources Humaines

Service Comptabilit Gnrale

Grance de la Succursale Secrtariat

Service Marketing et Transactions

Comptabilit

Guichets

Caisse

Service Crdit

2.5. Company Operational departments COOJAD is a Youth Cooperative which is structured with different departments in order to perform and achieve its assigned tasks of delivering service of credit and servings. It operates under three departments which can be summarized below: 2.5.1 Administration and Finance (AF) This is a department which is in charge of enhancing and building capacities of COOJAD employees, looking for capital, utilization of funds as stated in the budget. It has the following functions: 1. Ensuring the centralization and coordination of administrative operations (staff, supplies and stewardship), and financial accounting of the COOJAD; 2. Overseeing the operation, maintenance and renewal of equipment and materials; 3. Presenting the annual budget on the activities of the COOJAD; 4. Ensuring the payroll; 5. Propose vacancies, and define their functions; 6. Establish a cash flow and ensure its follow-up (monitoring of liquidity); 7. Ensure the analyses of investment cash flows; 8. Follow the state of liquidity in bank accounts, 9. To analyze investment opportunities for surplus funds in respect of reserves 10. To provide liquidity; 11. Present proposals for investment of funds available to the Director General; 12. Preparing contracts placement and monitoring; 13. Propose renewing or liquidation of investments according to the statement of cash available 14. To supervise and verify the monthly production of the state budget implementation; 15. Ensure the regular production and timely reports and financial statements and any other circumstances foreseen by the regulations in place; 16. To ensure the accomplishment of other tasks set by the Board of Directors. 2.5.2 Internal Control and Inspection (ICI) This department deals with controlling financial issues, operations and Human resources. In other words, this is internal audits and inspection.

It has the following functions: 1. Coordinate inspection activities throughout the COOJAD (headquarters and branches); 2. Setting a monthly schedule (at least) inspection at the headquarters and branches; 2. Assign inspectors as missions and different areas; 3. Ensure proper mission planning by contact with recipients and the team of inspectors authorized; 4. Follow the progress of all inspection missions to resolve problems in time may result; 5. Ensuring the production of inspection reports within a week of the completion of the mission; 6. Ensure compliance with procedures, regulations, instructions, laws and standards of good management in inspection, for any mission accomplished by its inspectors 7. Analyze and address the inspection reports before their delivery to recipients alleged by the regulations relating thereto; 8. Take follow up recommendations of inspection reports; 9. Prepare and produce any instruction necessary to improve the inspection function at all levels; 10. Ensuring the internal audit work; 11. Prepare and collaborate with other teams (regular or occasional) to be appointed to the audit work or verification of various kinds; 12. Delivering Audit-Reports related to all situations, the facts checked and proposing strategies in the interests of sound management. 2.5.3 Operations Department (OD) This is responsible for day to day operations of the COOJAD. Any activity that requires financial transactions (loans, accounts and cash) has to go through this department. It has the following functions: 1. Coordinate the management of all agencies and services transactions, Loans, accounts and cash; 2. Ensuring the safety of funds as depositors as agencies; 3. Establish effective mechanisms for risk management at all levels; 4. Having a database relevant to decisions on the tight grip of the activity related to savings and credit; 5. Rate plans and actions undertaken to improve the management agencies; 6. Preserve the fairness and reliability of accounting data from the agencies. 8

CHAPTER III: ACTIVITIES AND MAIN FINDINGS IN DEPARTMENT OF INTERNSHIP 3.1 ACTIVITIES DONE DURING INTERNSHIP 3.1.1 Introduction This chapter explains how two months of industrial training was spent in COOJAD which started from 25th October 2011 up to 24th November 2011; it also explains what was done from the first month up to the last month of the internship training. On 25th October 2011, the internee was presented to KANANURA Cyprian the Director of Finance and Administration to be oriented in the department of industrial training where the DAF himself transferred him in the department of Administration and Finance in which the internee carried in his research study. He was later introduced to the heads of other departments whose works are in the same place with the Administration and Finance department where later the internee visited and practiced his intern. This has helped the internee to interact and socialized with different staffs of COOJAD. The trainee had explanation about each department and its responsibilities in order to know how and where to start from in preparing the time table for two months training program accorded by the administration of the COOJAD. The internee was given an office in the same week, he received various documents as guidance and got a clean image of the Cooperative, operate in different departments. 3.1.2 Time schedule Time management is a crucial aspect for the success and proper management of an organisation. This reveals how the trainee has managed his time during the course of the training, the trainee would be at COOJAD at eight (8:00 am) oclock and he was able to practically keep time. This enabled the trainee to keep punctuality in every aspect and even to be experienced in the working environment. First week of the training: During the first week of the internship period carried out in COOJAD, the trainee was given an office in which to practice his theory acquired at the University. He was also given all documents concerning the historical background of the organization and its departmental organization.

The second and Third week: During these weeks, the trainee had to visit different departments and to get information on their work. The trainee had also to know the roles of each department in COOJAD. The fourth and sixth week: These weeks were spent in visiting different members and their projects financed by COOJAD located in Kigali city and BUGESERA District. During these weeks the trainee got the information relating to how SAGE SARI (Software used in accounting system of COOJAD) and how budgetary control as a technique is used by COOJAD to monitor all financed project and utilization of funds available in order to perform well. The seventh and Eighth week: These last two weeks were used to coordinate all gathered data and to work on my report as a final result of the internship period. 3.1.3 Problems encountered during the training Generally, the training was successfully completed only that the trainee had to encounter problems of having very limited time to make all necessary research since in most cases the trainee had to meet deadlines of other obligations in his daily work. At times gathering information from the financed projects could be problematic due to limited funds for transport. At some points, people from the targeted groups could hesitate to provide necessary information due to their own unspecified reasons. However, all these few obstacles encountered never stopped the internee from successfully fining the internship. During the industrial training there was no any other supervisor from school to see how the student is conducting his training and try to give him any orientation in case it is needed. 3.1.4 Appreciation of the contact with colleagues and Supervisor in COOJAD These eight weeks spent at COOJAD as a trainee, gave the trainee ample time and opportunity to interact with people already in the field and this gave the trainee rich experience in areas of work relationships, conflict resolution etc. This was vital in preparing the trainee for the field, where he is heading soon after completion of the studies. The trainee highly appreciates his internship supervisor and all COOJAD staffs, Administration and Finance staffs in particular, who unceasingly provided information and training that was necessary during the period.

3.1.5 Relationship between theory and practice

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The internship enabled the trainee to use theoretical knowledge from class to related functions or activities of the organization. The trainee was able to know how to manage human resources and how to coordinate all activities of different department. The trainee was also able to know how COOJAD credit officers analyze projects before providing credits for their members and how to use the budget allocated for. Also from the Internal Audit Department of COOJAD, the trainee was able to know and evaluate the applicability of internal control systems in place. He also managed to figure out the strengths, weaknesses, opportunities and threats of the organization. 3.2 MAIN FINDINGS IN DEPARTMENT OF INTERNSHIP This part explains how the internship program was carried out and what have been found in the department in which the internee accomplished his practice. During the internship period, the trainee has practiced in the department of Administration and Finance (AFD) 3.2.1 Department functions This department of Administration and Finance (AFD) has the function of 1. Ensuring the centralization and coordination of administrative operations (staff, supplies and stewardship), and financial accounting of the COOJAD; 2. Overseeing the operation, maintenance and renewal of equipment and materials; 3. Presenting the annual budget on the activities of the COOJAD; 4. Ensuring the payroll; 5. Propose vacancies, and define their functions; 6. Establish a cash flow and ensure its follow-up (monitoring of liquidity); 7. Ensure the analyses of investment cash flows; 8. Follow the state of liquidity in bank accounts, 9. To analyze investment opportunities for surplus funds in respect of reserves to provide liquidity; 10. Present proposals for investment of funds available to the Director General; 11. Preparing contracts, placement and monitoring; 12. Propose renewing or liquidation of investments according to the statement of cash available 13. To supervise and verify the monthly production of the state budget implementation; 14. Ensure the regular production and timely reports and financial statements and any other 11

circumstances foreseen by the regulations in place; 15. To ensure the accomplishment of other tasks set by the Board of Directors. 16. To manage companys Operation (Head, branches and field operations) 17. To Approve budgets for the branches and provision of credits to members/customers after analyzing clearly their repayment capacities; 3.2.2 Departmental mission Administration and Finance Department has the mission of providing technical guidance and supervision to COOJAD on matters concerning credit management, accounting, policies and procedures, looking for funds and to establish the mechanisms and procedures to follow in order to use them as it is stated in the budget. 3.2.3 The departmental Strategic Objectives The strategic objective of Administration and Finance Department (AFD), is to look for money and using them to reduce poverty by providing loans to different members on a reasonable interest rate for one purpose of developing them, COOJAD and the country in general; hence increment of standard of living This can be achieved by the following strategies: 1. Provide technical training and support all Branches of COOJAD 2. Increase learning and knowledge in management , training in business banking; 3. Facilitate COOJAD members by providing loans on a reasonable interest rate. 4. Identify and educate members about problems of paying back the money. 3.3 SWOT ANALYSIS 3.3.1 Definition As the word suggests, this refers to the strengths, weaknesses, opportunities, and threats. It is a tool for analysing any organisations strength (achievements), weaknesses (problems), opportunities, and threats.

Strength of COOJAD

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Well equipped human resource and necessary equipments: COOJAD (Headquarter and branches) have well trained human resource and enough equipment that eases their work. Being Youth Cooperative microfinance, he got funds from the Ministry of Youth. This helps them to have a good foundation on which their work is built. COOJAD Works in partnership with registered and recognized evangelical Churches Ministry called CMPCO which helps to mobilize honest members to join COOJAD. COOJAD has improved technology in terms of credit management; COOJAD works in good environment/in a Country with security, stability and good governance. COOJAD Works in partnership with registered and recognized Association of Microfinance Institutions in Rwanda (AMIR) and he is recognized by the Central Bank of Rwanda (B.N.R). Mobile banking technology, in collaboration with MTN Mobile Money COOJAD-KCB linking technology, where a client of COOJAD can benefit from the services of KCB and vice-versa

Threats of COOJAD COOJAD works with young people and vulnerable group; hence risk of not paying back the loans provided. Lack of infrastructure facilities within the countryside like energy to enhance IT in the area, Branches are not connected to the Main Branch; Little purchasing power to COOJAD members which minimizes servings and term deposit, thus provision of small loans only. COOJAD is working in business circle/financial circle, where micro finances have closed doors. It is a very big problem to convince people that it will not happen again. Opportunities of COOJAD One of the opportunity of COOJAD is the big number of people targeted (70% of Rwandese are youth) and all of them are willing to work with the COOJAD; COOJAD have been conceived in the framework of the channel where the Government of Rwanda and Donors will support the young entrepreneurs in profit making activities. Hence, COOJAD is subsidized. 13

Weakness of COOJAD Weaknesses are limitations in resources, skills and capabilities that seriously impends on Companys effective performance in terms of facilities, management skills and capabilities etc Limited capital to fulfill the expected activities of the needy/satisfy customer needs in terms of loans provision. Understaffing at all level because of limited budget. Time given to pay back the loan is too short for beneficiaries. There is a risk of having many doubtful debts. 3.2.6. Departmental specific priorities during the Internship period During the internship period of the trainee, the department was focusing on: a) Preparation of financial statements; b) Project analysis and provision of loans and recovery of bad debts; c) Annual budgets analysis and approval; d) Year ended financial auditing. Due to the trainee intention during the internship period, he participated in all the above activities the more emphasis on the last two points which are directly related to how budgetary control and audit as techniques can lead to better organizational performance. 3.3. Balanced Score Card for the year The balance scorecard is frame works that help organizations translate strategy into operational objectives that dives both behaviour and performance. 3.3.1 Balanced Balanced is the corporate objectives and strategy defined over a Balanced set of perspectives, rather than just one like financial. For profit organizations use financial, customer, internal business processes, and learning & growth perspectives.

3.3.2 Scorecard Once corporate strategy and objectives are defined, measures to evaluate performance against strategy and objectives. A scorecard is one of the measures that can be applied. 14

So the scorecard that meant to measure whether the activities of the company are meeting its objectives in terms of vision and strategy in the organization, where the trainee carried his internship have not yet introduced the scorecard due to the fact that the cooperative is still in its infant stage. They only use the bellow strategy to achieve its objectives. Management control by using Internal control known as SOAPSPARM which stands for Supervising, Organizing, Accountability, Productivity, Analyzing, Responsibility and Managing during every end of the term.

CHAPTER IV: CONCLUSION AND RECOMMENDATIONS 4.1 Introduction. 15

The internship for eight weeks was successfully concluded by the internee at COOJAD. The internee was able to learn a lot of things, some of which were already covered in theory and some others were new to him. 4.2 Conclusion. In conclusion, the internship was greatly vital to the trainee, firstly because it is a requisition to the award of the Bachelors Degree in the Rwandan curricula of Education. The trainee was enabled to acquire practical knowledge and to relate it to the theoretical part of it concluded from class. Since the trainee was aiming at learning more about microfinances administration, finance and operations. This has also helped the trainee to socialise with different people he met, and acquisition of skills and experience. 4.3 Recommendations. The internship was not just a mere formality but rather was aimed at contributing to finding the solutions of the internal weaknesses and threats faced by the institution and there is hope that COOJAD future trainees, and researchers will take note of the trainees recommendations. 4.3.1 To Company (Organization): A number of recommendations are drawn by the internee in seeking solutions to the internal threats and weaknesses of COOJAD. COOJAD has to share equally the same vision with his employees. This will help the cooperative to succeed. The Organization has to solve the problem of little purchasing power to her employees by making market surveys and timely acting on them. The organizations Human resource department should also think of more other ways to motivate employees this may include transport facilities, health insurance, loan provisions and employee capacity building like paying school fees at masters degree levels. This will help the organization to be productive since the employees will have enough skills, purchasing power and the organization standing a high position of retaining them.

4.3.2 To ULK

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 The University should facilitate the students in getting where to conduct their internship and possibly pay visits to their students while in the industrial trainings. This may help increase the importance and value of the Industrial training. It should try to cater for the transport expenses of the trainees for the shorter training periods. This may increase the morale of the trainees during the internship.

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BIBLIOGRAPHY

1. COOJAD DOCUMENTATION :-Procedures and regulations -Credit and servings policy, -Business plan, -Annual reports 2010 2. COOJADs Web site

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