The total net cash flow that was derived from the working and other operating activities of the Worley Parsons Group diminished during the year to $4. 3 m, with the reduction in operating cash attributable to increased working capital, the payment of GST under the New Tax System that was introduced in Australia at the start of the fiscal year, and advanced interest and finance costs.
The Cash that was used up by the company for its investment activities was over $9.4 m, with the greater part of the amount being the investment in the improvement and up gradation of the Worley Parsons’ information technology infrastructure and supplementary computing resources which were required in order to meet the enlarged operational headcount. In addition, Worley invested $2. 6m in getting hold of, principally PCS, which was a joint venture partner of Worley Limited (Hong Kong).
The cash that was used by the company in its financing activities incorporated the maintenance of bonus payments ($2.13), programmed repayments of the short term debt ability recognized for the acquirement of Worley Chemicals & Minerals ($0. 75m), and ongoing lease repayments. Worley Parson plans to administer their performance in an enhanced manner by moving to the Budget control model. There are some laid down points by the budget control committee of Worley Parson: Evaluation of on hand measures for official risk administration and major business decisions such as investment and income projects and come to a decision what improvements are desirable if risk management is to be maintained rather than weaken the budget control initiative.
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Supervision of the ambiguity and risks of the Budget control implementation itself. The budget laid down by the company for every financial year, is used to bring together all the activities within the company and setting targets. The budgetary control committee of Worley parson decides the targets that are based upon the expected sales that are assessed from the future conditions of the market share of the company. This anticipated figure that is calculated by the budgetary control committee decides the production, raw materials and other financial requirements.
The budget targets that are set up by the budget control committee integrate the company as it divided the target equally amongst every level. These levels are usually classified as divisional, personal, sectional or at times individual as well. The targets are used to gain control of the company by efficiently monitoring the levels that are assigned the targets. The feedback loop gives a complete analysis of the performance at each level.
This way the targets are met with changing individual or levels targets of the various targets in the company. This further increases the production pace and systematic attempt to achieve relative certainty of business conditions that are desirable for a better markets share thus providing a competitive advantage to the company. Worley Parsons like any other major industrial player in the world has signed the United Nations Environment Program International Declaration on Cleaner Production.
The company has taken serious steps to ensure that guidelines set up by the program are followed by the company’s actions and it is part of their corporate responsibility and accountability, annual reports following the GRI guidelines. In the year 2005, the company prepared a Millennium Report on the Environment Planning which was an all inclusive review and study of global environmental conditions. This report has been since used as the reference and guide on the company’s global environmental perspectives and the financial planning.
According to the new environment management report submitted by the company in its annual reports, in February 2005, the company had decided to follow new management approaches; to technical advancement to diminish the amount of toxic substances the industry used; reduction in wastes; condensed energy inputs; permit better management of goods throughout their lifecycle; and augmented spotlight on sustainable utilization, which was (according to the company views) is not about consuming less, it is about consuming in a different way, consuming resourcefully and having an enhanced quality of life.
The company has specifically given importance to re-cycling of products, and accelerated reduction in the production of toxics at operation plants. The company developed new codes for the waste management and allotted an annual budget of $1. 60 m for the purpose amongst all global units.