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This report is about the non-financial company, which is Orica Limited. In this report, it is discuss about the responsibilities of the Chief Financial Officer of the company. The responsibilities and the function in the company, in order to perform, by the CFO, and the responsibility affects the objective of the company. In this report, it is also discuss about the efficient market hypothesis and the roles of the pension fund manager.
Orica Ltd. is the biggest provider for the commercial explosive and the organization for the blasting for the marketplace of the mining and the infrastructure, oil and gas. This company is the leader of which is globally under the provision for the support of the ground in field of the mining as well as in the tunnel and also supplies the sodium cyanide for the extraction of the gold. The Orica Ltd. provides services for the global operations and to the 12000 people as a customer service in 100 countries and even more than that. The sight of the Orica Ltd. is to facilitate the solutions for smart resourcefully to the consumers in all around the world. They are concerned about the development of the partnership which is for the long term and that will decrease the total price of the mining and the improvement of the product and for the operations, they raised the customer license. The company adds the thinking, which should be progressive for the research and the development globally, and for the delivery of the results, which is lead to market with the help of the technical network, it is delivered to the customer, which is facing problems in day-to-day life. They adopt the strategy for the creation of the sustainability of the shareholder’s value with the help of the customer focus and the innovations, which leads to the different solutions. They assured the supply for the customer with the help of the capital portfolio globally and the manufacturing and the distribution of the assets and the arrangements of the sources of the third party effectively.
The company gives promises for the customer’s safety, well being, and health and the surroundings and the communities in which the company do their operations (Orica Ltd, 2016).
The vision of the Orica Ltd. is to facilitate the solutions to its consumers all around the world. For the completion of this vision, the company really focuses on the needs of the customers and the co- partnership and the excellence of the operations and innovating and creating new values for the customer as well as the shareholders.
They have perpetrated about the prophylactic of the one another and the customers as well as the community. They conceive that they do their operations without any harm and accidents to others. There are no accidents regarding to any individuals, plant, or the environment. They believe that if there is no accident, whether it is today or tomorrow, or any other day, and so there will be no more accidents ever after.
The company believes in the coordination, does the work with the integration as the individual business, and diversified the team. The company valued each participation of the persons and honors it. They create a trust about the partnership with the stakeholders and they considered that the success of the company would only when the stakeholders get success.
They only engage on those solutions, which will increase the value of their business and for the customers. They believed in improvements, innovations and finding the new ways for the operations. They focus on the customer’s needs and the necessities and make the investments in the research and the technology for the development of the new ideas.
They do the operations with honesty and the integrity and also assume responsibilities for their actions and take decisions in accordance with the economic, social, and environmental basis. They obtained their goals and delivered the outcomes. For the growth of the business, they discuss their strategy so that each participation should be implied (Orica Ltd, 2016).
The chief Financial Officer of the Orica Ltd. is Mr. Thomas Schutte and joins the Orica in the month of the September 2015. The responsibility of MR. Thomas Schutte were to perform the function of the finance, which involves treasury, budgeting, forecasting, planning, reporting, and analysis along with the information technology, relationship with the investors and the corporate affairs of the group. Before joining the Orica Ltd. MR. Thomas was working with the BHP Billiton, in which he assumed the responsibilities of the position of leadership, which involves the responsibilities of the president and the CEO of the Samachar Manganese Ltd., president of the global marketing and the CFO of the global commercial group (Reuters, 2016).
The responsibilities of the CFO, which is working to perform by MR. Thomas, are as follows:
The major part of the CFO is to create the company’s financial records and to see that records are in order and make sure that the books are correct and should cover.
The CFO should take care around the decisions making data about the management, as the company required data for the making of the best decisions of the management. From providing the data, which are looking forward, the maturation of the forecasting should be done by the CFO and the reliable benchmarking data should be utilized and the CFO also does the comparison of the competition.
The issue of the compliance is in the company and for addressing that subject, the CFO sees the foreign account of them and pays the taxes. The company owns the additional issues related to the compliance and the CFO handles that issue and also see the duties which is related to the shareholders like the issue of the dividend, and with the act of the Sarbanes-Oxley, the responsibilities of the CFO is preventing the company from the fraud and to disclose the financial information.
CFO also helps the internal customers of the companies and the person, which are doing work in the company like operating managers, which required the data for the determination of the things such as the pricings decisions and the value of the customers for lifetime (Entrepreneur Media, 2016).
The responsibilities of the CFO are to make for significant financial controls to the company and that controls should involve the cash flow management and the overhead expenses, established the policies of the credit for the customers and for the achievements of the favorable terms of the payments, the CFO works with the major vendors and for the measurements the procedures are implemented and evaluates the levels of the optimal inventory.
The CFO also implements and monitored the system and the ascendance of the company and handled that project, which required the analysis of the quantitative and the qualitative for understanding the options, which are available. The CFO takes the responsibilities for the growth of the annual budget of the company and interact with the owner of the company and with the managers of the department, which ensuring the final products and the original requirements of the business are disclosed. The CFO also takes the analysis of the investments of the future capital for the fellowship for the securement of the finance.
The main responsibilities of the CFO are to create the relationship of the work along with the banks and with the financial institutions that will affect the capability of the company for financing the operations. It includes the meetings, which are regular basis along with the officers of the company in order to take review of the ongoing operations and negotiate the favorable terms for the seam on the banks of credit and discussed about the capital, which is invested in the firm with the private investors.
The CFO also has the responsibilities for addressing the issues which can involve the long-term future of the company and the issues involves like the acquisition strategy for the development of the company in order to help the further growth or diversified the line of the specific product or the activities of the business which does not match with the objectives of the company. The duties of the CFO are to find out the investments from the financial markets of the public or to offer an initial public offering.
CFO is the member of the team of the management for the entrepreneurial growth of the company. As the sharpness of the finance and knowledge about the general business, the CFO will helps the owner of the business and the top executives and create the connection with the operation of the company along with the financial performance (Overture Group, 2015).
The efficient market hypothesis precedes the fundamental theory of the finance and the economics, which explains the movements of the prices of the assets. The operation of the markets had done effectively which is accepted and the prices of the stock disclose all the information, which is available. The participants are confidential for the information, which is same and the fluctuations of the prices give responses to the new information. Thus, the investors are not allowing in the efficient market to gain returns, which are above the average without having any risk. The capability of the efficient market hypothesis has the shortage of fundamental, which enables the explanation of the excess volatility. The theory of efficient market are important in financial economics, supporter of the behavioral finance which believes in the numbers of the biases which involves the behavior of the irrational as well as rational and run the decisions of the investors (Nath, 2016).
Professor Eugene Fama said that, in the market of efficient, there is competition between the various participants which leads to that situation at the point of time in which the prices of the single securities which is actual discloses the information and its affects which is depend on the incidence that is already appeared and also that incidents which is supposed to be appeared in the future. In some other words, the efficient market is the estimation of the intrinsic value, which is the real price of the security at the point of the time.
The weak form is that form of the efficient market hypothesis in which the previous prices and the volumes, and other statistics of the market does not give any information that is useful for showing the prices of the future. If there is a change in the prices of stock, which is random then there is no use of the previous prices for forecasting the future price. There must be randomly changes in the price, as the changes occur due to the information, and the information reaches randomly. There must be changes in the price as soon as possible and at the right level in case of the information reached. If this form is right then the technical analysis declines.
The semi-strong form is that form in which the prices disclose the information, which is available publicly and there are future expectations. This form suggested about the adjustments of the prices as soon as possible according to the new information and the previous information are not using for the best returns. If this form is right then it rejects the fundamental analysis.
This form of the efficient market hypothesis reveals all the prices according to the availability of the information, which is publicly or not. The material knowledge and the information which is non-public are not using for the best results (Pawar, 2011).
The responsibilities of the Pension fund manager are to ensure the pension schemes are operate efficiently. They also manage the pension fund and the company and the individuals for the benefits of the retirements pay the large amount of the money. They also do the developments for the pension’s policies and discuss about the fund strategy and supervise the pension schemes and also calculate the prices of the funds and deals with the claims and maintain the management of the relations between the employer and the trustees (Graduate Prospects Ltd, 2016).
The responsibilities of the CFO help the company to create the strategic decisions with the help of their role in the financial analysis as well as the management. Nevertheless, the CFO also used the solution, which automated and analyzes the finance of the company and the results of the benchmark, which is easy to provide the insights, which are actionable and communicating with the owners of the company (Entrepreneur Media Inc, 2016).
Orica.Ltd.(2016).about us.retrieved on 12 september 2016 from http://www.orica.com/About-Us#.V9ZTh0197IU
Orica.Ltd.(2016).visions and values.retrieved on 12 september 2016 from http://www.orica.com/About-Us/Vision---Values#.V9ZTmk197IV
Orica.Ltd.(2016).mining services.retrieved on 12 september 2016 from http://www.orica.com/Products---Services/Mining-Services#.V9ZTik197IV
Reuters.(2016).Schutte, Thomas.retrieved on 12 september 2016 from http://www.reuters.com/finance/stocks/officerProfile?symbol=OCLDY.PQ&officerId=2629992
Entrepreneur.Media.(2016).4 key functions of the Chief Financial officer.retrieved on 12 september 2016 from https://www.entrepreneur.com/article/242001
Overture.group.(2015).5 vital roles a CFO should play in your business.retrieved on 12 september 2016 from http://www.theoverturegroup.com/blog/5-vital-roles-a-cfo-should-play-in-your-business/
KPMG.(2013).Role of CFO in today’s environment.retrieved on 12 september 2016 from https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/CFO-Summit-Regulatory-compliance.pdf
Nath.T.(2015).investing basics: what is the efficient market hypothesis, and what are its shortcomings?.
Pawar.K.(2011).Effecient market hypothesis.
Graduate.Prospects.Ltd.(2016).pension scheme managers.retrieved on 12 september 2016 fromhttps://www.prospects.ac.uk/job-profiles/pension-scheme-manager
Webfinance.(2016).efficient market hypothesis.retrieved on 12 september 2016 from http://www.businessdictionary.com/definition/efficient-market-hypothesis.html
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