Discuss about the Corporate Finance for Ruralco Holdings Limited.
For this research paper, ‘Ruralco Holdings Limited’ is selected as a research corporation. ‘Ruralco’ is listed as ‘RHL’ on the Australian Stock Exchange. ‘RHL’ is an Australian diversified agricultural corporation that was started in 1970. The headquarters of ‘Ruralco’ is situated in Hobart, Tasmania. Moreover, ‘Ruralco’ provides auctioneer services, real estate, agricultural equipment insurance, and other services to the rural community of Australia. Currently, the firm has established a strong business platform to fulfill the different needs of rural and regional Australia effectively (Ruralco. 2016). Furthermore, Travis Dillon is the CEO (Chief Executive Officer) of the firm. Adrian Gratwicke is the CEO (Chief Financial Officer) of ‘Ruralco’. In addition to this, this research paper would be useful to portray major responsibilities of the CFO of ‘Ruralco’. Moreover, this paper would also be useful to represent that the responsibilities that are executed by the CFO affect the crucial objective of the business.
In the views of Kasunic and Kasunic (2009), the CFO of ‘Ruralco Holdings Limited’ performs numerous important responsibilities for the financial growth of the business. The major responsibilities carried out by the chief financial officer play a noteworthy role to achieve the strategic and financial goals of the organization. Moreover, the chief financial officer of ‘Ruralco’ is committed to accomplish the financial goals and objectives of the organization. The CFO plays various roles as well as responsibilities to accomplish the fiscal goals and objectives of the firm. The CFO of ‘Ruralco’ is conscientious to improve the financial performance of the organization in an effective way (Kasunic and Kasunic (2009). Apart from this, the major responsibilities that are performed by the CFO of ‘Ruralco’ are expressed as below:
According to Hitt, Ireland and Hoskisson (2006), the CFO functions as a budgetary and accounting leader of an organization. Under this zone of obligation, the CFO builds up various successful fiscal arrangements to improve the budgetary performance and to fulfill the financial goals of the firm effectively. The fiscal arrangements developed by the chief financial officer are profitable to raise the assets, funds, and capital of the association in an appropriate way (Hitt, Ireland and Hoskisson, 2006). The CFO of ‘Ruralco’ assumes a noteworthy part to control and handle all the fiscal activities of the firm. For case, the CFO checks and screens the money related exchanges to diminish the odds of mistake and to enhance the straightforwardness of the business. The CFO of ‘Ruralco’ has a nearby eye on the money streams of the business. It is because of the chief financial officer is responsible to utilize the assets or capital of the firm at the ideal spot and on the perfect time (Bouchoux, 2009). The CFO is mindful to pay the duties and levy to play out all the fiscal commitments of the firm properly.
The authors Abdelhak, Grostick and Hanken (2014) state that, the CFO of ‘Ruralco’ assesses the money related prerequisites and also develops budgetary arrangements to accomplish the fiscal necessities of the business effectively. In addition, under this range of obligation, the CFO of the firm creates imperative bookkeeping and budgetary capacities for the monetary development of the business. For case, it should be noted down that, the bookkeeping and budgetary capacities are necessary to improve the financial performance of the company (Abdelhak, Grostick and Hanken, 2014). Along with this, with the help of these bookkeeping and fiscal capacities; the representatives get to be ready to under and perform budgetary commitments effectively. The CFO of ‘Ruralco’ creates imperative bookkeeping and money related strategies, approaches and activities to enhance the straightforwardness and execution of the business. The CFO plays a major role is to give precise money related information and data to the representatives; so the employees can perform all the bookkeeping & financial capacities in an appropriate way (Dlabay and Burrow, 2007). Consequently, it can be said that, the CFO of the firm acts as a bookkeeping and monetary pioneer to perform all the budgetary commitments and to satisfy the fiscal necessities of the company effectively.
According to Lapovsky and McKeown-Moak (2010), the CFO of ‘Ruralco’ works as the leader of the organization. Moreover, organizational leadership is also the other important area of liability for the chief financial officer of a business organization. The chief financial officer of ‘Ruralco’ is capable to offer shared authority and vision to the partners and shareholders, and representatives of the association. The CFO of ‘Ruralco’ is dependable keeping in mind the end goal to a domain where representatives and partners of the firm get to be ready to understand and share the vision of the business (Lapovsky and McKeown-Moak, 2010). In addition, the chief financial officer plays a critical role to give backing to every one of the individuals from the association; so they can finish basic execution targets of the organization in a successful and a proper manner. The CFO of ‘Ruralco’ is mindful to have successful administration and interpersonal aptitudes to manage the partners of the organization.
The author Venter (2007) states that, the CFO of ‘Ruralco’ is mindful to keep up hierarchical responsibility and straightforwardness in a viable way. In addition, the CFO of the firm makes and keeps up reasonable worth for the shareholders to augment incomes of the association. The CFO of ‘Ruralco’ creates compelling associations with the individuals from the association and makes a typical vision to enhance the hierarchical performance of the business. The CFO functions as a powerful communicator and arbitrator to achieve the monetary objectives and goals of the business (Venter, 2007). Hence, it can be assumed that, the chief financial officer of the association is dependable to acts as an authoritative pioneer with a specific end goal to give shared initiative and to finish the mission and vision of the business in a successful and a critical way.
According to Fabozzi, Drake and Polimeni (2008), the CFO works as the performance improver for the organization. The CFO is completely capable to boost the organizational performance of the business. The CFO of the association is capable to guarantee that all the money related arrangements and approaches are conformed to the budgetary objectives and destinations of the business (Fabozzi, Drake and Polimeni, 2008). Moreover, the CFO builds up an execution administration framework to augment the money related performance and to meet the fiscal objectives of the business in an effective and a more comprehensive manner The CFO of ‘Ruralco’ creates money related systems and activities arrangements to satisfy the monetary necessities of the business. The CFO measures and assesses the results to screen monetary execution, create restorative activities, and to minimize the effect of changes in a proper way (Kyriazoglou, 2012).
In addition to this, the CFO of ‘Ruralco’ is mindful to create hazard relief arrangements to decrease the money related dangers of the business. Budgetary dangers may happen whenever those impact the money related execution o f the firm contrarily. Also, to handle the circumstance of money related danger, the CFO creates hazard moderation procedures that assume a noteworthy part to alleviate monetary dangers effectively. Apart from this, the chief financial officer plays a major role to relieve fiscal dangers that are identified with the remote trades, ware value changes and contract disappointments (Ferguson, 2006). As a result, it can be said that, the CFO of ‘Ruralco’ endeavors all the conceivable endeavors keeping in mind the end goal to improve the money related and hierarchical performance of the organization.
The author Fitch (2007) affirms that, the major responsibilities carried out by the chief financial officer of a corporation influence the decisive objective of the organization. The CFO of the association fills in as the pioneer to fulfill the money related and key objectives and goals of the business. The CFO is conscientious for the fiscal development of the association. Moreover, the chief financial officer oversees and controls the assets/capital of the firm that is crucial to satisfy the budgetary necessities of the business. Moreover, the CFO mitigates money related dangers that by and large happens in the budgetary regions of the business (Fitch, 2007). Therefore, the duties performed by the chief financial officer play a critical role to finish the objectives and targets of the business in a pre-decided era. Subsequently, the obligations of the chief financial officer influence a definitive target of a business organization.
Conclusion
On the premise of above discourse, it can be assumed that, the CFO of an association assumes a critical part in the achievement and development of the business. Moreover, it is also scrutinized that, the CFO of the firm plays out various obligations to achieve the vital, money related, and focused objectives and goals of the business effectively.
In the views of Lee, Lee and Lee (2009), the effective market hypothesis (EMH) is a venture hypothesis that assumes a noteworthy part to settle on critical speculation choice to increase higher returns at a lower level of danger. The EMH theory expresses that security costs completely uncover all the accessible monetary data of the business firms. Along with this, the EMH theory clarifies that business associations or financial specialists can’t hit the business sector due to the proficiency of securities exchanges. The EMH theory depicts that financial specialists can’t purchase underestimated stocks in light of business firms dependably exchange their stocks at their reasonable qualities/costs (Lee, Lee and Lee, 2009). In addition to this, EMH theory assumes a noteworthy part with a specific end goal to anticipate patterns in the commercial center. In addition, frail, semi-solid, and solid are the three noteworthy degrees of the effective market hypothesis those focus on the fenced in area of non-open data in business sector costs.
The authors Brealey, Myers, Allen and Mohanty (2012) express that, the pension fund manager might not pick a portfolio with a pin just on the premise of the exactness of the EMH theory. In other words, if the EMH is precise, the pension fund manager might not decide a portfolio with a pin. There are various explanations for this. For example, the primary driver is that the EMH theory does not connote to pick a portfolio with a pin (Brealey, Myers, Allen and Mohanty, 2012). In addition, a portfolio with a pin won’t ready to offer higher comes back to the financial specialists. It is a result of the considerable number of loads of comparative businesses is not all around enhanced and a portfolio with a pin might be hazardous for the financial specialists. A portfolio with a pin won’t have the competence to diminish the height of risk for the clients. Henceforth, the portfolio choice that the pension fund manager makes on the premise of the EMH will not work in the favor of clients or speculators (Tyson, 2016).
In the views of Graham and Dodd (2008), the pension fund manager must be mindful so as to choose a portfolio to get higher returns. The asset director ought to embrace and actualize market strategies to settle on choice identified with the choice of portfolio. As indicated by these business sector strategies, the chosen portfolio must be all around differentiated. It is a direct result of a very much differentiated works in the support of speculators. A well-diversified portfolio assumes a noteworthy part to give higher comes back to the speculators. Along with this, the risk level of the chosen portfolio must be reasonable for the clients. Moreover, the asset supervisor must assess that the chosen portfolio can offer expense refunds to the clients or speculators (Graham and Dodd, 2008). For that reason, it can be said that, fund manager should not depend on precision of EMH theory. The pension fund manger must tail all the business sector standards to choose a portfolio with a pin.
References
Abdelhak, M., Grostick, S. and Hanken, M.A. (2014). Health Information: Management of a Strategic Resource. USA: Elsevier Health Sciences.
Bouchoux, D.E. (2009). Business Organizations for Paralegals, Fifth Edition. USA: Aspen Publishers.
Brealey, R.A., Myers, S.C., Allen, F. and Mohanty, P. (2012). Principles of Corporate Finance. NY: Tata McGraw-Hill Companies Inc.
Dlabay, L. and Burrow, J.L. (2007). Business Finance. USA: Cengage Learning.
Fabozzi, F.J., Drake, P.P. and Polimeni, R.S. (2008). The Complete CFO Handbook: From Accounting to Accountability. UK: John Wiley & Sons.
Ferguson, M.R. (2006). The Executive Branch of State Government: People, Process, and Politics. Australia: ABC-CLIO.
Fitch, T. (2007). Career Opportunities in Banking, Finance, and Insurance, Second Edition. Infobase Publishing.
Graham, B. and Dodd, D.L.F. (2008). Security Analysis (6th ed.). USA: Tata McGraw-Hill Companies Inc.
Hitt, M., Ireland, R.D., and Hoskisson, R. (2006). Strategic Management: Concepts and Cases. USA: Cengage Learning.
Kasunic, T.K.F.T., and Kasunic, F.T. (2009). Supersize Your Small Business Profits!: How to Survive the Current Recession and Manage Your Small Business Profitably During Turbulent Economic Times. Australia: Trafford Publishing.
Kyriazoglou, J. (2012). Business Management Controls: A guide. USA: IT Governance Ltd.
Lapovsky, L. and McKeown-Moak, M.P. (2010). Roles and Responsibilities of the Chief Financial Officer: New Directions for Higher Education, Number 107. Australia: John Wiley & Sons.
Lee, A.C., Lee, J.C. and Lee, C.F. (2009). Financial Analysis, Planning & Forecasting: Theory and Application. USA: World Scientific.
Ruralco. (2016). About Us: Available At: https://www.ruralco.com.au/services/ [Accessed On: 21st September 2016]
Tyson, E. (2016). Investing For Dummies. John Wiley & Sons.
Venter, A. ( 2007). Municipal Management: Serving the People. Australia: Juta and Company Ltd.
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