1. INTRODUCTION
Gone are the days of manual register of shareholders. Computers
are definitely here to stay. It is almost impossible today
to run a competitive business without a computerized information
system. Indeed, local and global competitive pressures and
continuous innovation are facing many organizations to rethink
how they do business. To do so required the ability to successfully
incorporate computerization amongst others into an organization.
Most registrars to have employed computers
to handle their daily voluminous tasks of processing of data,
storage of information for retriever and archival purposes,
and providing needed information. The computer technology
provides a vital infrastructure that enhances effective and
efficient operation of the share registration business.
2 NEED FOR COMPUTERIZATION
- The quest for a permanent cure to the problem and challenge
facing registrars due to the traditional way of doing
business and the desire for a different approach to respond
to challenging external environment led to the computerization
of share registration business.
- The ever-increasing awareness of the registration’s
function by the investing public and their demand for better
performance in service delivery is another factor.
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Today, it has become the practice
for clients or even prospective clients to look at the
extent of computerization of your organization in retaining
or engaging your service as the case may be. it is now
a critical success factor in the registrar industry and
will be essential to the survival of the share registration
business in the electronic economy
3 BENEFIT OF COMPUTERISATION
- Request from shareholders and other stakeholder for statement
of shareholdings, dividend history and other account enquiries
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With signature & Image verification
system, the time taken to offer verification service prior
to lodgment at the central securities Clearing systems
(CSCS) is drastically minimize and the statutory 48 hours
verification a reality.
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Generally, computers help registrars
to reduce the cost of doing business though the effectiveness
of IT deployment is another matter.
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Computerization give the ability to
quickly respond to market trends, change in business environment
or new directives from regulatory bodies such as SEC,
NSE, CAC, CBN, EFCC etc.
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Planning and controlling will also
improve as the collection and analysis of data and dissemination
of information and receiving feedback will definitely
be improved.
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The introduction of computers will
revolutionize the way things are done in the organization.
Information processing method will improve, leading to
faster information generation and by extending faster
decision making.
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Better compliance, through the prompt
rendition return and availability of statistical information
and exception reports to support operational and policy
decisions, while also offering enhanced scope for controls
to minimize internal fraud.
- Prompt preparation of clients, bill and enhance payment
for service rendered.
4. ESSENTIAL OF COMPUTERIZATION
The essential issues developments have to deal with can be
grouped as follows:
1. Planning and preparation computerization.
2. Project management;
3. System implementation.
4.1 PLANNING AND PREPARATION FOR COMPUTRIZATION
(1) Responsibility for planning and decision-making
The benefits of computerization are achieved more through
careful and methodical planning than through the purchase
of innovative and expensive computer hardware and software.
For that reason, it is important that the decision to computerize,
the formulation of policy on computerization, the planning
and management of computerization and the coordination of
computerization with other organizational changes are all
seen as the responsibility of senior management rather than
computer specialists or vendors.
The level of management that is most appropriate will depend
on the nature and scale of computerization. In a well-ordered
approach, management should take an active role in computerization
for the following reason:
(2) Need for Planning
The benefit accruing for computerization are significant and
can only be achieve if the computer process is carefully planned,
with the full commitment of management.
The for a clear plan to guide and co-ordinate
the development of computerization exists regardless of the
size and complexity of the computer system proposed; often,
significant benefit from computerization are achieve with
relatively modest investments.
However, in the absence of these, future
plans to make operational improvements by automating the transfer
of information between departments of the same office may
prove impossible or unnecessarily expensive.
It follows that benefit from computerization
only through realistic and methodical planning and not through
the purchase of innovative expensive computer equipment or
software. In any case, the purchase of computer systems must
the planning stage. For that reason, it is important to focus
due attention on the planning and preparation for computerization.
It is also the case that the large system, the more careful
the planning that is required.
On the negative side, there are numerous
examples to show what can go seriously wrong if the development
of computerization is not carefully planned:
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The absence of an overall plan to
guide the development of individual computer often result
in piecemeal developments which are incompatible, information
which cannot readily transferred between system or combine
with information held on other systems, and little or
no scope for expansion and development;
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Inadequate analysis of the requirements
for the computer systems, can lead to system which do
not address the real need of the organization, or which
do not tackle the underlying objective of the outfit.
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Inadequate attention to the need to
involve user in the planning of the computer systems,
can lead both to antipathy on the part of those who are
intending to use the systems, and to systems which fail
to address the real need of the users and the manner in
which they work.
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Inadequate analysis of the method
of working of the organization, and of the underlying
objective and option for alternative working, often lead
to computer system which perpetuate manual method in situation
where different method of working, combine with new computer
systems produce more efficient or more effective results;
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Inadequate analysis of the costs and
benefit developing and implementing the computer systems
can lead to decision to proceed with systems which are
too costly in relation to the benefit they generate; in
some case, this can result development being abandoned
before the system is completed, because escalating costs
and little evidence of benefit being generated.
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Inadequate analysis of the costs of
running and maintaining the computer system, can lead
to systems which are too costly to operate and which can
as a result fall into disuse;
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Inadequate attention to training needs
of staff and users at all level can lead to inefficient
or ineffective use of the system and a failure to meet
its design objective;
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Inadequate attention to the clerical
and administrative procedure associated with running the
system, can lead to incomplete, inaccurate or out-of-date
information, which in extreme case can lead to user loosing
confidence in the usefulness of the system, and the system
failing in disuse;
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Inadequate attention to the security
and confidentiality of the information, can in extreme
case lead to compromise and infringement of privacy;
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Inadequate staff preparation for the
implementation of the computer system and it associated
change in procedures can lead to staff antipathy, and
in extreme case, refusal to use of the system;
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Attempting to develop systems, which
are too large and complicated to be manage properly, can
lead to slipped deadline, loss of development staff morale
and loss of interest on the part of users.
Properly applied, planning of computerization
will mean that any computer systems that are introduce will
generate real benefits, at a cost which can be justified,
that they will have scope for future expansion and integration,
and that the system will worked according to expectation.
4.2 PLANNING FOR COMPUTERISATION
Planning for computerization is similar to
that involved in building a new town or estate; work cannot
begin on building individual parts until the overall plan
has been prepared and agreed. Te overall plan determine how
big the overall development will be, where the infrastructural
components (which, in the town analog, would be road drainage
etc., but in computer, terms would be computer processors,
communication links, network etc) will be placed and the number
and type of individual building to be built.
(1) Computerization strategy
In computing strategy, the overall plan
is called a strategy; it examines the objective of the organization
and identifies those aspects of work that could usefully be
computerized. The plan usually also set the time scale, which
show construction plan and a time line. A strategy also set
out the infrastructure necessary to achieve the proposed computerization
– the relative size of computer system required, communication
facilities needed, the number of user requiring access and
the relative volumes of work to be undertaken by each.
(2) Defining computerization strategy
In technical term, this stage is know as
defining the strategy—establishing a plan which set
outs what objective are to be met, the extend to which computerization
will be applied, and the broad time scale in which development
will take place.
Planning for computerization consists of a large number of
stage or components, as in the town analogy describe above.
As whit building a new development, the first problem is to
fine a suitable site, and develop an overall plan for the
scale and nature of the development—whether to build
a residential housing area or an industrial park, for example.
Once the strategy is defined, the remaining
of the planning process focuses on the building and implementing
the component parts of the strategy – buying the right
computer hardware, developing or buying appropriate computer
software, training the user how to use the system, etc.
At first sight, the list of task involved
in planning a computer system can be daunting. In reality,
by breaking down the overall task into specific components,
it can be seen that each individual part is straightforward
and manageable. It follows that since individual stage are
manageable, so it is overall task.
As a guide to components involved in planning
for computerization, one can identify the following typical
stage as a guide to what is normally include:
Setting the scope and direction for computerization;
Designing and implementing each individual system;
Ensuring the security, integrity and satisfactory operation
of the computerization project
Stage associated with setting the scope and direction
of computerization
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Deciding responsibility for managing
the strategy study and for setting the policy on the scale
and scope of computerization;
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Undertaken an analysis of the needs
of the organization (s) and preparing a detailed overall
plan for computerization which tackle the needs;
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Within the overall plan, deciding
what to computerize, and how to tackle each project;
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Deciding priority between computing
systems for development or implementation;
Within the overall plan stages involved in designing
and implementing each individual system.
- Setting up a project management structure, to take responsibility
for ensuring that the propose computerization project is
completed on time, within budget, and achieve the objectives
set for it, and to provide mechanism for users to influence
and guide the development of the computerization;
- Involving the user in developing the plan for computerization;
- Confirming the feasibility of the project;
- Analyzing the requirements, to find out precisely what
the computer system has to do, what information it require
to hold, and what screen and report layouts are required;
- Setting data standards;
- Breaking down the project into manageable stages, and
analyzing for each stage the time require to complete it
and the resources needed for it;
- Deciding how best to implement the proposed system –
whether to utilize an existing system from another unit,
for example, or to develop another system from scratch;
- Developing the system, where necessary, or modifying
an existing system to meet the specific need of the organization;
- Piloting the system as necessary to check that it work
satisfactorily and to enable user to familiarize themselves
with the system and to refine their requirement;
- Testing the system, both to ensure that it work correctly
under all test condition that the user themselves that the
user satisfy themselves that it operate correctly under
normal operational conditions;
- Implementing the system, by installing it on the computer
hardware, planning the changeover from manual to automated
working, and ensuring that the automated system work reliably
enough to replace the manual methods;
- Training the user in the use of the system;
- Preparing and issuing documentation to assist users in
the use of the system, as well as to provide technical guidance
to the computer staff who will maintain and support the
system, and training materials to the staff who will train
users in its use
- Planning and implementing the transfer of data from existing
manual (or automated) records to the new system;
- Evaluating the extent to which the complete system meets
its design objectives, and subsequently monitoring its continued
achievement of them.
Stages involved in Ensuring the Security, Integrity
and satisfactory operation of the computerization project
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Preparing procedure for checking information
quality, and for ensuring that quality standards are help
within pre-defined limits;
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Planning for the physical security
of the computer system and the information help on it;
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Planning for the eventuality of the
major disaster affecting the computer system (i.e., fire,
flood or malicious action);
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Planning and preparing procedure to
ensure that all requirement of data protection are met;
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Planning the on-going support and
development of the system;
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Setting the maintaining standards
to define the layout and interpretation of all item of
information held in the computer system.
The exact content of the component in the
above list may change slightly from one situation to another
but will rarely deviate markedly from the overall paten. Furthermore,
it should be noted that many of the task involved in planning
and implementing computer system run concurrently and that
the list as presented does not therefore represent a strict
chronological sequence.
4.3. DETAILED IMPLEMENTATION OF COMPUTERISATION
a). Setting up a Project Management
Structure
Each computer project identified in the computerization strategy
requires the formation of a project management
group to take responsibility for its management
and completion. The membership of this group will vary, depending
on the importance and scale of the computerization project
– the most senior manager of the organization for the
most significant projects, and local or junior managers for
small scale or less significant projects.
In each case, however, the management group
comprises a combination of managers, user and computer expert;
their remit is to make decision about the requirement for
the project, commission the development of work, ensure the
work proceeds according to plan, and ensure that the final
system meets the requirement which were set for it.
For technical aspect of the project, the
project management group will appoint a project
leader, to take technical responsibility for
designing and implementing the proposed system to meet the
requirement of the project management group.
The project leader will normally be allocated
staff and resources, for the management of which he will have
delegated authority. The leader will report to the project
management board – to account for his use of resources,
to provide report to show the progress made on the project.
To be effective, the project management group
involved in managing projects should be small – usually
not more that six people and preferably not more that three
or four. It should be chaired by senior manager either from
the user department or from another part of the organization
which is not directly involves in the project itself.
In addition to the project management group
and technical team of staff engage in the project work itself,
there may also be one or more ad-hoc quality review
teams. These teams, of user often consisting
of just one person are expected to check the quality of the
screen layout and report formats and to review the proposals
for the communication aspect of the system.
Although these are importance tool in the
process of the project management, in the same way as a hammer
is an importance tool in house building, it is importance
to recognize that they do not themselves constitute project
management any more that a hammer can be regarded as a house
builder.
Project management is what the senior manager
on the project management group does not ensure that the project
is completed on time, within budget, and that the resulting
system does what it requires to do.
5 . DOCUMENTATION
Documentation refers to any written or recorded
instruction or on-line help facilities on how to use and maintain
the computer system. The instructions are intended to serve
a number of purposes:
As an introduction to the system of new staff
or those who are previously use it (though specific training
should be provided to all such staff);
For reference by all staff who needs to use the system, to
check on the detail of how to use the system, the constraints
imposed on it, etc.
The preparation of documentation for the
system is an essential part of the project, since without
adequate documentation; a system may not be use to its full
potential and the support maintenance of the system will prove
difficult.
Documentation is needed for five
separate groups of people, each of whose requirements
differ:
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Day-to-day user will require an easy
reference guide to fine out how to cope with circumstances
which may arise in the normal use of the system; such
documentation has to address the needs of the casual user
who may not be very familiar with the system, and of the
experience user who know the system well and may require
guardian on how to deal with an unusual circumstance;
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The manager of the system (usually
called the system administrator) should know detail of
the computer’s operational environment in which
the system require to work, how to deal with administration
task ( such as taken backup copies of the data, purging
old data, etc.), and how to deal with system faults;
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Technical staff who will be require
to support and maintain the system itself; if the computer
program is prepared in-house, or were modified from system
supplied externally, these staff will require detail description
of the structure of the computer programs (using the same
diagram as to served to define the system at the design
stage), together with the source code of the program (the
program instruction which specify what the system must
do), and any test routines which have been prepared;
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The system operators;
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Senior manager of the organization
in which the system operates; they will require broad
information about the system’s objective and purpose,
it resource requirements, and broad measure of performance
which can be use to monitor the system. The purpose of
this documentation is to ensure that senior manager are
fully aware of the resource managements of the system,
and can take an overall management responsibility for
the system as an integral part of their organization.
For the trainer who will provide training
in the use of the system; they will require a detailed training
pack, with worked examples of the use of the system, and sufficient
detail of the technical aspects system to understand how it
works and what it does.
6 DATA CONVERSION
Another major part of the system implementation
is the transfer of information from manual record to the computer
system. In share registration business, for example, will
rarely be of practical value unless at least some of the existing
record (perhaps held in registration of binders) are transferred
to the computer system. Data held on the computer system can
usually be converted to the format suitable for another system,
and typed document can sometimes be read and interpreted by
document scanners (though they can be prone to error, depending
on the quality of the source documents).
Data conversion can be a lengthy and resource-intensive
process in some cases it has been know for data take-on to
last a year, before the system could be regarded as fully
functional. In other cases, it can be completed in days or
weeks. Care should be taken in planning data take-on to ensure
that the task is completed relatively quickly – a year
usually too long. The task can sometimes be broken down by
prioritizing information – for example, loading the
most importance information first.
Three ways of tackling the conversion of
information include selective conversion, total conversion,
and phase conversion. For some application it may be sufficient
to convert only some of the available information, such as
the most current records. In case where most of the information
is to be converted, it can be done at once or phased in over
a period of time. Other phased approaches are possible, of
course – for example, selecting case record alphabetically
by surname, and working methodically through alphabet.
However the conversion is tackled, it is
preferable to operate to operate to strict sequence, and to
avoid uncertainties about where the information lies –
whether on the old manual system or the computer system.
7.MAINTAINING INFORMATION QUALITY CONTROL
The quality of any computer system is only
as good as the quality of the information in it. Unfortunately,
it has been a feature of most systems that the information
as often been inaccurate, incomplete or out-of-date. Given
the gravity of the decisions which can be base on information
held in such computer systems, the quality of information
is of paramount importance.
It is therefore importance to establish adequate procedure
to ensure that information is entered promptly and accurately,
and that outdated information is purged from the system.
1) Periodic Callover
The procedure will normally be clerical in nature, but may
require some aspect to be programmed into the system itself;
for example, the computer system may be programmed to produce
printouts of the information that has been keyed in it.
1) Snap Checks
It is helpful to give specific quality control unit to staff
in the organization – for example, Sectional heads to
take samples of records on regular basis and to check computer
records against the manual files.
Regular audit check should be carried out to monitor and the
accuracy of the information held in the system – the
numbers of incorrect records, the time delay between information
coming into the organization and it being recorded on computer,
etc.
3) Design of Entry Forms
A major part of quality control, however, lies in the design
of forms which are to capture information for entry to the
computer. The use of simple mechanism, such as audit trails,
micro-coding, prelist, callover printouts (to ensure that
number are keyed in accurately), all help to reduce the likelihood
of errors, and it is well worth the effort to examine the
mechanism involve in capturing and transferring data to the
computer.
4) In –built Validation Checks
or Edits
Another importance factor is the extent to
which the computer system itself checks the data that is keyed
into it. Most programs are design to checks the information
very carefully, because of the potential consequences of errors.
These checks can be programmed into the system themselves,
so that the computer can reject information that is obviously
incorrect and validate the information been keyed in.
Computerization planning should detail consideration
of the steps necessary not only to maintain acceptable standards
data quality but also to monitor the accuracy of the information
in the system on a regular basis. Regular audit checks, to
monitor the accuracy of the information should be carried
out – usually base on a sample of the records, to keep
the numbers of records for checking to an acceptable level
– and any instance of error rates climbing higher than
agreed maximum levels rigorously followed up to trace and
rectify the cause.
8. SECURITY PLANNING
Computer systems, if they are effective,
are vital to the operation of an organization they serve.
It follows that the computer equipment, its associated programs,
and the information held on it, are of considerable value
of the organization – in the sense that in event of
a total loss of the computer system and information, and without
any steps being taken to reduce the effects of these total
losses, the organization might well cease to operate for weeks
or months.
The security of computer system is therefore
of considerable importance, both to ensure that the system
are protected from risk as far as possible, and to ensure
that in the event of any failure of the system, the system
can be restored to full operation as far as possible.
The risk of system failure can be reduced
by the following means:
- Maintaining an Audit Trail;
- Password Administration;
- Preventing physical access to the computer system by
unauthorized staff who may maliciously or otherwise, switch
or damage the computer system;
- Keeping the system fully maintained, on a regular basis;
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Introducing physical protection measures,
design to tackle incidents before they seriously effect
the computer system – automatic fire alarm systems,
automatic halon gas extinguishers, uninterrupted power
supplies(UPS) for the main computer processor, are all
examples;
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Ensuring those regular backup copies
of all data and programs held on the computer system so
that, in the event of any failure for any reason, the
system can be re-loaded form the backup copies; (off –
site backup).
9. SUPPORT AND MAINTENANCE OF THE
SYSTEM
A computer system, like a house, requires maintenance once
it has been implemented. This applies to both the computer
hardware and the programs that run on it. The need for maintenance
is different in each case, however.
1. Maintenance Contract
Computer hardware requires maintenance to function and is
usually provided in the form of maintenance contract by the
supplier, wherein the supplier agrees to respond to equipment
fault within a specified time period, and to guarantee specified
availability standards for the equipment (for example, that
the equipment will be fully operational for a least 98% of
the working hour in any three-month period).
2. Back-Up Support
In circumstance where maintenance can reasonably be provided
quickly (for example, at site remote from repair engineers)
it may be necessary to install a back-up computer, to keep
the system operating in the event of a failure. The availability
of back-up support can be a significant issue in selecting
a computer system, and the requirement for specific standard
support (for example the times taken to respond to failures)
should be written into the operational requirement at the
tine of purchasing the computer equipment or programs.
3. System Update
Computer programs must invariably contain faults, which may
not become apparent until particular circumstances arise.
When these faults do make themselves known, the results can
a total system failure. Support must therefore be provided
to ensure that any such fault are noted and corrected as rapidly
as possible.
Support must be provided to respond to these changing requirements
by agreeing and implementing revisions and extension to the
computer programs.
4. Help Desk
Furthermore, the computer programs require support for the
benefit of the user; if the user encounters difficulty, support
is require providing assistance. This final support is often
provided in the form of a central inquiries point which users
can contact for advice, called a help desk.
For all these form of programs maintenance
and support, there requires to be a continuing technical resource
available for the programs; indeed, it is a feature of computerization
plans.
10. DATA ADMINISTRATION
Data administration is a task, which continues throughout
the life of a complex system. The task itself id not complex,
but it is of vital importance and does require a careful and
methodical approach.
The task of the data administrator is to act as a co-ordinator
between the differences departments which may require the
use the system, to advise on the meaning and interpretation
of the data, and more importantly, to impose constraints on
the further design and enhancement of the system by ensuring
that the data standards are adhered to, and that any change
in the data content of the data system are properly documented
and circulated to users.
The data administration may also be given
the responsibility of ensuring that the quality standards
are monitored and enforce.
11. SYSTEM EVALUATION
One of the very first steps in planning a computer system
is to set out the requirements. One of the final steps is
to check the extent, to which the requirements have been met,
and to examine critically any discrepancies between the planned
and actual functioning of the system. Admittedly, system evaluation
is rarely done, though there is widespread agreement in its
value.
A system evaluation need not to be a lengthy
or expensive exercise, it should be base on objective criteria,
drawn from original specification of requirement for the system.
The reasons for a system failing to the required
standards or not to meet its design objective are not always
connected with system itself. Often human error will prevent
the full benefit been achieved – staff who do not adapt
their method of working, for example. It is one of the goals
of the system evaluation to identify such causes so that remedial
action can be taken.
12. CONCLUSION: A NEW PARADIGM
Given the societal and commercial inclination towards electronic
communication and by extension the corporate preference of
our regulatory authorities towards e-dividend, e-bonus, e-IPOs
and e-messages, to mention a few, I believe that the share
registration business should be thinking along that line
Needless to say that the foundation is COMPUTERISATION.
Thank you.
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