3 favourite blogs and why.

1.    Iris Onvlee – Wow…seriously wow. If you have not seen this blog, you need to take a look. Well set out, and just full of information. The information is great and I like how Iris presents the Company and contrasts her personal beliefs.

2.    Anna Towan – I like how Anna has set out her blog. Also enjoy the readings. It has helped me a lot in setting out my blog.

3.    Jess Evans – Great KCQ. Jess’s company is an interesting. Software companies intrigue me. Basically they offer a service, but rely heavily upon the retail of the software and its benefits.

EVZ Key Concept and Questions?

In all the time I have spent in business as a Manager or worker I have never really studied an Annual report as in depth as I have in this course. Sure in management meetings we would receive a copy in the major end of tax year meeting, but really all we looked at was the figures and discuss how we could save on admin costs or operating costs to improve the bottom line. As a low – middle Manager we would not receive as much information as what the Upper management would receive. So in other words the financial snapshot the upper management would be different to the lower to middle managers, and then different again to the Employees and Public in general. The Annual report is what Employees and Public would be looking at as a Statement concerning the financial state of the Company. Why is it that Upper management only receive the most precise financial state of the Company? And is the Annual report a true indication?

The company I have been Assigned EVZ Limited, Corporate wise would be classed as a small – medium corporation. From 2010 – 2013 the Average revenue is $69M. And in 2013 they recorded their highest profit of $889,768. In 2012 EVZ recorded a $14M loss, when looking over the figures to work out why they turned around more than $15M to record a profit in little over a Year no success. But after sending an Email off to the Company I was informed that in 2012 EVZ had sold their National Engineering entity. To Whom? And for how much? I do not know. Maybe as I learn a bit more in this course I may find the answers in the figures.

I do dabble somewhat in the Share Market (in the market world I would be classed as very small), and looking at these figures I would not be really enthusiastic about buying shares in this business. However, I would be interested to see how EVZ’s investment in SYFON and TSF perform. Reason being SYFON is well placed to increase in revenue, and this is reflected in the Companies figures,  as Businesses, Governments and the public are becoming more aware of Water recycling, usage and wastage. And according to the Annual report they are moving into Asia with SYFON and are projecting big returns.

TSF is moving into the Coal Seam Gas (Fracking) energy. This is becoming a very controversial alternative Energy Source. There is much debate over its environmental impacts (if you have not watched the GASLAND Movies I would recommend it). Personally this is a big gamble. At the moment the Government is behind Fracking, but if Public backlash comes to the front this Company may not gain a good return on their investment. And in fact the Company has stated quite clealy in the Annual report their belief in the future returns of alternative energy strategy, and seem poised to move the company in this direction.

Just adding more to this post as other things have come to my mind while going through my Companies Annual report.
The question is asked in the assignment, 'Do I like the company I have been allocated?'

Honestly...there is no like or dislike. This may change as I explore my company further in the other assignments. Would I invest in this Company? probably not...however the potential for further growth would be worth keeping an eye on.

EVZ Annual report is only 69 pages long, and I so only because I have seen others and some are 3 times the size. It is nice and glossy and has some pictures of current projects. Interestingly all the reports since 2010 are exactly set out the same way, but just with different pictures. In all years they supply an independent auditor declaration before the Financial section. 

Some of the points I do not understand:

• The necessity of a Remuneration Report - I can only gather it is to show that the Board is not ripping the company off. But is this really a fail safe? 
• The notes to and forming part of the accounts I am not understanding. I see the figures but some of the terminology concerning areas I do not understand. What is a 'Deed of Cross Guarantee?' and the 'Parent Entity Disclosure?'...I am sure as I continue in this course i may find these answers and their relevance. but for now I do not comprehend.

EVZ Board of Directors

EVZ Board of Directors Profiles.

But before I begin an Accounting quote for the day:

Balanced budget requirements seem more likely to produce accounting ingenuity than genuinely balanced budgets.
Read more at http://www.brainyquote.com/quotes/keywords/accounting.html#7MwG6LXwbc5UE2WJ.99

Balanced budget requirements seem more likely to produce accounting ingenuity than genuinely balanced budgets.
Read more at http://www.brainyquote.com/quotes/keywords/accounting.html#7MwG6LXwbc5UE2WJ.99

 'We have the most crude Accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things we need to know' (Susan George)

 Max Findlay. Non-Executive Chairman.

Appointed 14 May 2008.
Mr Findlay was the Managing Director of Programmed Maintenance Services Limited from 1988 to 2008 and accumulated significant and relevant experience in the strategy, planning, management and marketing of a growing industrial organisation.
Mr Findlay is a Bachelor of Economics and is a Fellow of the Australian Institute of Company Directors.
Mr Findlay is a member of the Audit Committee, Nomination Committee and Remuneration Committee.

Graham Burns. Non-Executive Director

Appointed 1 February 2008.
Mr Burns has extensive managerial skills and experience in the property, retail and manufacturing sectors. He is currently the Chief Executive of Hunter Land which is a significant industrial developer in regional New South Wales.
Mr Burns is Chairman of the Remuneration Committee and a member of the Nomination Committee.

Robert Edgley. Non-Executive Director

Appointed 26 August 2011.
Mr Edgley holds a Bachelor’s Degree in Economics from Monash University together with a second degree in Japanese language. Mr Edgleys career has been predominantly focused in International Finance and Investment Banking in Australia, the UK and throughout Asia.
Mr Edgley has significant experience and skills in Strategic Planning, Performance Management and Marketing and has proven abilities in building businesses.
Mr Edgley has been appointed to the Audit Committee and Remuneration Committee and is a member of the Nomination Committee.

Raelene Murphy. Non-Executive Director

Appointed 28 September 2012.
Ms Murphy has acted as Interim CEO for EVZ since 10 February 2012 until the commencement of the new CEO on 24 September 2012.
Ms Murphy is an Executive Director of 333 Management.  Her background is in managing diverse groups and financial and operational performance improvement, both as an advisor and in CEO and CFO roles across a number of industry sectors including building and construction and in the private and public arena.  Her previous roles have included CEO of a leading national privately-owned diversified recycling and construction industry service provider which she led through significant growth.  In addition, she has had various leading roles including CEO and Director of Child Care Centres Australia.
Ms Murphy is a Member of the Institute of Chartered Accountants and holds a Bachelor of Business.
Ms Murphy is a member of the Nomination Committee and is Chairman of the Audit Committee.


Some very interesting profiles. I have looked at other blogs from fellow Students and they seem to be very similar as far as the brevity of content. 

Couple of things I notice at first.

• Only 1 has an Accounting background - Raelene Murphy, holds a Bachelor of Business, but not listed from which university. However, is a member of the Institute of Chartered Accountants.
• Max Findlay & Robert Edgley both have degrees in Economics. Edgley attained at Monash University - A highly respected University with a proud history. Whereas Max Findlay has no information concerning where he attained his degree.
• Lastly Graham Burns seems to hold no actual degree according to his profile. Seems to have extensive experience in business. 

Why does Edgley's Profile list where he attained his degree but the others do not? Are they not as prestigious? If they did list where they did them would it be significant to potential investors? Would knowing this information influence an investors decision? 

I find Graham Burns profile very interesting. Of all the four board members his profile information seems quite Scant. However, his Interest in Company Shares is 9,017,021 ordinary shares (The most of all the Board). So would seem he has invested quite heavily in the Company. What is the significance of this? Did his start the Company in its infancy?

I have tried to find this information with no luck in reference to this Company's beginnings. This is very frustrating as it I am unable to ascertain how this Company grew over it's lifetime. To me this information is important so I sent EVZ the following email:

Hi,
My name is Ken Hatch and I am currently doing a degree in Business at Central QLD University. I have been assigned your Company as research for a Course I am doing as part of this degree. In short I am interested in knowing some of the Company history. The link on the Website is listed as under construction.

Could I please trouble someone to provide me with a brief overview of EVZ history.

Appreciate any assistance that can be provided.

Regards,

Ken Hatch 

When, or if I receive, a reply I will post this up on my blog. 

We have the most crude accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things that we need to know.
Read more at http://www.brainyquote.com/quotes/keywords/accounting.html#XvgMx0VfqQoeuB3b.99

Balanced budget requirements seem more likely to produce accounting ingenuity than genuinely balanced budgets.
Read more at http://www.brainyquote.com/quotes/keywords/accounting.html#7MwG6LXwbc5UE2WJ.99

Why Accounting is Challenging My Beliefs.

Having been a manager in the past I always viewed Accounting as a another meeting wherein I would have to sit in listening to morose accountants stating their case in reference to the business by using numbers. I have always thought that a business is a dynamic entity, and that people, i.e. Customers are what contribute to that dynamic. In short if the business is doing all that it can to ensure high quality client service and satisfaction that the numbers will reflect that. However, my beliefs are being challenged by this course, I am starting to view Accounting as a dynamic reflection of the state of a business. It is opening a new world of understanding the Global business and how accounting is pushing at the front of a Global economy. More and more businesses are beginning to move into other countries to expand client base. And especially in Australia this is becoming important as the local economy is taking a big hit, and this reflected by Ford and Holden. These Companies were viewed as Australian and will always contribute to the Australian Economy. So what went wrong? Why have they closed, or will close their manufacturing plants in Australia? Through my research Accounting is the answer. The numbers reflect the downturn. In 2010 the Gillard led Labor Government donated $270 000 000 to Holden as it was seen as an investment in Australian jobs and to strengthen Australian industry. So what went wrong? The workers in the Elizabeth Plant even agreed to a Wage freeze to keep the plant open. So did this sacrifice not pay? The answer lies in the numbers? The global economy is moving at a rapid rate, and as Companies are looking to maximise profit, more and more companies see Australia as a market that is difficult to maintain an acceptable profit/loss ratio. The expenses, mainly employee wages is too high in Australia in comparison to other Countries. Is this our fault? Have we created this because we have fought so hard to maintain a high standard of workers rights in comparison to other Countries? Have we created an Economy that cannot compete on the Global market because our Employee wages and other benefits are too high, making it hard for Companies in Australia to maintain a healthy Revenue/Expenses ratio?
Does Ford and Holden offer an excellent product and Customer Service So if they do, then why is the business not an outstanding success? This is why Accounting is challenging my beliefs. It is an integral part to a business, in short you may manipulate the numbers, but in the end they never lie about the state of a business. Holden and Ford have invested $B into the production factories in Australia, however the projected returns are not sufficient in maintaining these production plants. Accounting reflects this, but can it provide the Answers?
I am beginning to believe it can.