Answer To: Page 1 XXXXXXXXXXKaplan Business School Assessment Outline Assessment 2 Information Subject Code:...
Sumit answered on Sep 18 2021
1.
(a). The company is committed to maintain the highest levels of Corporate Governance. The Corporate Governance structure is built so that it can ensure that the directors, officers and employees fulfill their duties and ensure that the interest of the all the stakeholders of the company are being protected. The Corporate Governance system is based on the rules framed in the NZX Corporate Governance Code and the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (ASX Principles) (third Edition). The strategies of the company are based on to align the interests of the manager and the shareholder’s interest. One of the examples of the same is that if the chairman of the board is not an independent director, then the Chairman of the board and the Chief Executive Officer (CEO), should be different people. Hence the company has appointed different people in the roles of the Chairman of the board and the Chief Executive Officer (CEO) of the company.
(b).
The formula for calculating the Net Working Capital of the company is:
Current Assets – Current Liabilities
The calculation of the Net Working Capital for the year 2018 is as under:
Current Assets = 499,702,000
Current Liabilities = 160,389,000
Net Working Capital = 339,313,000
The calculation of the Net Working Capital for the year 2019 is as under:
Current Assets = 675,699,000
Current Liabilities = 205,389,000
Net Working Capital = 470,310,000
Since the current assets of the company is large in number, Hence the company is following the Relaxed current Asset Investment Strategy. Under this strategy the company maintains a higher level of the current assets to support the short-term needs of the company. Under this strategy, the company maintains the higher levels of the Inventory, debtors and the...