ACCY801: Accounting and Financial Management Assignment Help

ACCY801: Accounting and Financial Management Assignment Help

Executive summary 

Treasury wine estate is the heritage company that deals in the diversified wine range in Australia. Treasury wine estate is the company that registered themselves in the stock exchange of the Australia stock exchange. Treasury wine estate has profit turnover is approximately $530.2milion. Treasury wine estate keeps enhancing its product with better flavour and with the help of specialist the company indulge in innovating and experimenting with the product. They serve their stakeholder or investors on time so that stakeholder believe in the company and ready to invest in the company at the time the company need them. Hence  Treasury wine estate is the established and popular wine company with excellent goodwill in Australia.

Introduction 

Treasury wine company is the company that is the leading company that deals in wines in Australia. The main objective of the company is to maximize its profit and growth of the company goodwill and company market capturing. Another objective of the company is to capture the global market of the company and expanding its product out of the origin. The very important objective of the company is to serve their employees the better living standard by providing them with better facilities and it is responsible for increasing their performance and will result in attainment of the objective. They transfer values to their shareholder at the time treasury wine estate earn excessive profit and gain customer trust. Hence the company is progressively establishing its market in Australia and other region and states too. 

Company background

Treasury wine estate is the Australia based company that deals in diversified wine range with a different flavour and within price range. The company have registered themselves in the Australian stock exchange. Treasury wine estate company believe in collaboration and team-building activity. Treasury wine estate teams indulge in branding and establishing their product into the market and keep enhancing the quality of the wine standard and with support with the customer taste and preferences. The company keep evaluating their past report and make their further strategies according to the experience they faced in past adjust the product and the cost factors that affect their product sustainability. Treasury wine estate always delivers the values to their investors and stakeholders. The annual turnover of the company is$530.2 million in the year 2018.

Treasury wine estate company deliver 35% of the profit to the shareholder of the company in the year 2018. In the year 2018 Treasury wine estate company faced rapid growth and experiencing great profitability , as it increase the company employees morale and provide a chance of expansion and arise the need of decision making  for expanding their product ranges and thinking about new proposal and they also working on gathering customer views towards the company quality and standards of the product that they present to the customer.

Hence treasury wine estate company is the heritage company that is rich with their product quality and keep enhancing their product innovation and taste quality and they keep experimenting with the product and product flavour. This is the reason that they still shining their product in the market with customer supports and they did not only establish their market in their country but they also established their market in the country such as Europe and America and these places Treasury wine estate successful make their values in these place market and customers are approaching their product.

Characteristics of the Treasury wine estate board

 Company vision

  • To serve the shareholder with the best possible ways.
  • To motivate their employees and utilize the resources properly.
  • To capture the market globally and with sustainable profitability.
  • To deliver market value and give a return to the investors.
  • To consider the demand need and taste of the customer.

Employees of the treasury wine estate company

Executive leadership teams with best team and professionals that ensure that the product and services should be delivered with the quality standards and product evaluation.

The very important person that is mentioned in the personnel of the company is their shareholders or board of directors.  They are the decision-maker of the company that indulges in projecting plans and formulating the instruction to accomplish the objective with least error in reaching the objective. 

Hence these are the important personnel of the company that indulge in winemaking and executing activities and the senior authorities that are mentioned in the list are shareholder, investors, and managers that make sure the company is running in the right track and path.

The history behind wine labelling

Treasury wine estate company thinks of the living label of the wine as they label the product with the person or group of person portraits with written something on it such as about the company person ., directors and precious words, sometimes the company label the product as the flavour implicate about the product. The label they use is of different types such as wolf blass sign label etc. The marketing head suggests this idea to attract many wine lovers towards the product as well as label attract non-wine lovers too. 

Treasury wine estate turnover history 

In the year 2018, the company earned $530.2million it is the impressive growth of the company as compared to the previous year, 

In the year 2017, the company earned $455.1 million it is the slightly low per cent as compared to 2018  turnover.

In the year 2016, the company earned $334.2 million it is the per cent turnover that the company earn that is not great as compared to 2018 and2017.

Hence, by studying company turnover charts it reflects that the company is progressively growing their business and earn good turnover in the year 2018 as compared to the preceding years.

Product development of the company

The company make a survey that implicates the data that showcase the popularity of the company product in the market as well as in the global market. 

In the Australia market, the value of the treasury wine product is higher than as compared to another country.

Global production of the wine in another country is increased in the year 2018 that reflect the market range towards their product and that automatically brings their goodwill strong.

 The wine production in the countries such as Italy chine and Europe is higher in the year 2018 and the consumption is also high in this year as well the consumption of the product domestically is also higher in the country that is Australia.

Investment decision 

Investment decision that is taken by the treasury wine estate is

The greater investment that they made is the investment in expanding their market in another origin and another country.

The most important decision making is done by the company is the distribution of 35% of the share to the shareholder of the company.

The next decision that is taken by the company is to enhance its product as per the global needs and preferences.

Another investment decision is taken by the company is to deliver a return on investment to the stakeholders. 

The company also decide to increase the productivity of the company so that for enhancing the productivity they invest in the advanced technology for preparing wines.  So that the objective will be accomplished as early as possible (Levy, 2015).

Hence these are some investment decision that is taken by the company for organizing new product range and expanding their market successfully in another origin and country.

Corporate governance recommendation

Treasury wine estate company follows all the recommendation that is made by the corporate governance in the form of the principles.

The company build the best executive teams that make sure no obligatory activities will be conducted by the other employees and they also consider all the working is formulated as according to the vision and mission that is built by the shareholder and managers.

They carry out all the activities by keeping in mind all the ethical and cultural responsibility that is towards society.

The company highlight their overall activities and published it into the public forum that the customer and investor will know them better.

The company respect investors and shareholder interest and deliver them the return on time.

The company prepare timely action and plans to resolve the risk and provide effectiveness in the working (Tricker and Tricker,  2015).

Hence these are some recommendation that is properly executed by the company senior authority and all the activities are done as per the following norms and principles.

External audit functions of the company

Treasury wine estate audit functions control all the external, internal and also manage capital management.

The key focus of the audit function

Understanding and reviewing the risk of the company by managing the company in going activities and keep track of it.

Another focus is to coordinate all the activities and instruction of the company.

The company auditor also makes sure the financial and accounting report of the company so that no issue will be faced by the company in future. 

Reviewing company workplace and environment of the company that the company environment should be healthy and safe.

The main objective of the auditor is to control the accounting and financial transaction of the company. and to control corruption and fraudulent that is come up during the company premises (Turpen and Dyer, 2015).

The remuneration of the auditor is to ranges between $2500000 to $260000 that is given by the company to the auditor. These are the fixed salary pay scale.

The key measure for implementing ethics

The key measures that help the Company to establish ethical values in the company are

  • By providing guidelines and the proper technique of preparing the product.
  • By specifying the product items that are used during the preparation of wine.
  • By integrating all the employee’s efforts to attain a certain objective.
  • By stating the budget of the company the ethical or systematic working will be brought out.
  • By implementing quality standard and values in the organization the objective maybe obtain. 
  • By assuring the quality standards the company will ensure the product quality and standards and present it to the customer confidently(Tricker and Tricker,2015).

Hence these are the measure that may help the company in establishing standard norms and ethics in the company for better performance.

Five investors of the company

Financial  statements of the company for 2018

particular 2018$m
1Liquidity  ratios Current  ratios Current  assets 1741.8
   Current liabilities809.4
    2.11
  Quick  ratios Cash  +receivables89.1+593.0
   Current  liabilities809.4
    0.84
  Debts  -to worthTotal  liabilities1949.4
   Net  worth3496.3
    0.55
2Assets management ratiosSales-to-AssetsSales2439.4
   Total Assets5445.7
    0.44
  Return  on assetsNet  profit before tax475.5
   Total  assets5445.7
    0.087
  Return  on investment Net  profit before tax457.5
   Net worth3496.3
    0.13
3Profitability  ratiosGross  profit ratiosGross  profit 1060.8
   Sales 2439.4
    0.43
  Net profit ratiosNet  profit360.4
   Sales 2439.4
    0.14
4Capital  structureDebt  to equity Total  liability 1949.4
   Total  shareholder equity3496.3
    0.55

These are some ratios analysis that is analysis from the company information and that reflect the position of the company.

Liquidity ratios reflect that the firm has flows of liquidity in the organization and it is very good at his level and it can balance as according to the certain amendments and plans.

Profitability ratios of the company are also satisfactory and quite goods because they just reflect the growth as compared to previous years.

Assets management ratios are also satisfactory and do not shows any sign of negative balance. 

The capital structure of the firm is also good, as the result liabilities are lesser than assets and that sustain the shareholder distribution (Williams and Dobelman, 2017).

The market value of the treasury wine state product as per the present situation or condition is18.60AUD that is close last close up the value of the treasury wine estate as on 18/10/2019 with the Australia stock exchange.

Overall performance, financial status and cash flow

Overall performance of the company during the year 2018 is quite goods and intellectually they have taken much decision to bring the company status that far and standardize their product in the market and also globally too.

Financial  status of the company is improved as compared to previous year in the year 2018 the turnover is approximately $530.2million, they deliver 35% to the shareholders, their EPIS is also increased up to 30%, they also provide return on capital employed as 12.6%.hence after studying all these information it may conclude that company has improved their performance as compared to previous years (Williams and Dobelman, 2017).

Cash flows statement

ParticularAmount $m
Cash flows from operating activities
Receipt from customer3,263.3
Payment to supplier and government(2,845.3)
Borrowing cost paid(2.6)
Income tax paid(93.7)
Interest paid(26.7)
Net cash flows from operating activities295.0
Cash flows from investing activities
Payment for property, plant and equipment(193.6)
Payment for intangible assets(21.8)
Proceeds from the sale of property, plant and equipment50.6
Net cash flows from investing activities(164.8)
Cash from financing activities
Share brought back and cancelled(300.0)
Dividend payment (203.7)
Proceeds from borrowing482.0
Repayment of borrowing(215.3)
Purchase of shares(42.9)
Net cash flows from financing activities(279.9)
Total cash flows from activities(149.7)
Cash and cash equivalent at the beginning 240.8
Effect of exchange rate(1.7)
Cash and cash equivalent at the end89.4

The cash flow of the treasury wine estate of the company during the year 2018

Operating Cash cycle of the company

Operating cycle of the Treasury wine estates are

Particular Amount $
Cash and cash equivalent 89.4
Receivables593.8
Current inventories1,012.3
Property, plant and equipment1,416.5
Payables759.3
Tax liabilities245.3
Other liabilities15.8
Borrowings879.6

These some operating cash cycle that is generated by the company these are the regular operating cash cycle that is generated or paid every year.

Comments on above-mentioned assets and liabilities

The inventories of  Treasury wine estate is $1012.3 million that is good in this year as compared to the previous year it is low as according to this year. 

The working capital of the company is to keep fluctuating and changeable as compare to the previous year. 

The assets are higher than the liabilities that means the company is doing well in the working because they have fewer liabilities and creditors that showcase great goodwill of the company.

The higher the working capital the company will think more about expanding the product with more innovation and they can invest this capital in carrying out regular activities (Mathuva,2015).

Hence these are some comment that is made as per the items mentioned above.

Conclusion 

Through studying the company current state and previous state the company is progressing year by year that shows the significance of the good coordination and team working. The deliverability of the product is also goods and acceptance and the responses of the consumer are also great that entails them to make more innovation and strategies to become the market leader of the country and also become the heritage wine company in Australia. The shareholder of the company support the company and make a better decision and build better policies for better performance and productivity. Hence the overall objective of the company is to maintain the profitability to sustain in the market and also improve the stock and share of the company to gain better return and provide the best product to the customer.

References

Levy, H., 2015. Stochastic dominance: Investment decision making under uncertainty. Springer.

Mathuva, D., 2015. The Influence of working capital management components on corporate profitability.

Treasury wine estate 2019, about company [online] Treasury wine estate, available at https://www.tweglobal.com/ [access on 21/10/2019]

Treasury wine estate 2019, annual report [online] Treasury wine estate, available at file:///C:/Users/anil/Downloads/2018%20Annual%20Report%20Treasury%20Wine%20Estates.pdf [access on 21/10/2019]

Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.

Turpen, R. and Dyer, H., 2015. Working with external auditors: a successful relationship between internal and external auditors depends on collaboration and open communication to achieve the shared goal of effective audit service. Internal Auditor, 72(1), pp.17-19.

Williams, E.E. and Dobelman, J.A., 2017. Financial statement analysis. World Scientific Book Chapters, pp.109-169.