Friday, 27 March 2015

Draft Ass#1

Annual Report:
The annual report ending June, 2014 can be found at:

Key concepts and questions KCQs that occur to me: A brief overview obtained from website and annual report.
The following information also provides some insights to my firm – Greenearth Energy. It will draw attention to some of the activities, projects, and operations behind my company.
Greenearth Energy is an Australian based renewable energy company. It constantly works toward energy efficient industrial lighting systems and is interested in technology focused solutions to industry energy efficiency and CO2-to fuel conversion markets. One project Greenearth Energy (GEE) is supporting and is involved in is NewCO2Fuels (NCF). It is an Israeli start-up company and is attempting to develop, establish, and commercialise an innovative system to produce profitable fuels from CO2 and water. This process is done by using renewable, high temperature heat from solar or excess heat from industry.
There are a few separate projects that Greenearth is working on, but one other project is called Vivid Industrial. This has been renamed from Greenearth Energy Efficiency and it provides energy efficient lighting to industrial businesses.

Some of its goals include:
1.       Reduce electricity and energy costs
2.       Reduce the CO2 footprint
3.       Decreased lighting maintenance cost
4.       Improve the quality of light
5.       Measure performance with smart lighting controls and analytics

Just recently, the NCF received several awards recognising the uniqueness and outstanding future potential within the field of renewable energy.
Both of these operations - the NCF and Vivid Industrial - are focused on making a positive impact on the environment.

Note: The technology used by NCF, is based on previously developed technology. Neither is it new technology, nor their own. Not that there isn’t any their own different modifications or updates to the equipment perhaps, just that is in fact previously used method and technology.

Given this information is coming from the website or annual reports of Greenearth energy it will always leave reader with their own queries and questions and as the report goes on only more will arise.
Some of my questions are:
·         Why isn’t the renewable energy science of greater effect, influence and value to Australia?
·         How can a field with so many companies behind it working as hard as they do lack the support of the general public? Taking into account the goals which firms like Greenearth energy are pushing towards.
·         Do people not yet realise how useful this technology could become in the future?? Why?
·         How much funding is put toward this technology, research, and projects where it could be used elsewhere, say the transport industry or education??

Areas of my firm’s financial statements I am having difficulty understanding:
It is a very overwhelming task to be expected to read through it and understand it all, but that’s not the point. Given my very newly established journey into accounting it isn’t always about what I understand, but sometimes about what I don’t. Makes one realise how much they are yet to learn, but can be thankful for the process. One thought I got, was that all accountants or people in similar fields, all had to start somewhere. Perhaps they struggled with the same difficulties as I currently am.
One area I am not familiar with involves all the shares and documentation about them in the report. I was not aware of all the different aspects involved in financial statements either. My initial thoughts to financial statements was a few paragraphs and a couple of graphs but that is very wrong. This particular one contains over and above of 70+ pages and I was lost from the very beginning where all the directors were introduced. In saying that, it does become a little easier to follow through it once you get reading s little into it and slowly start making sense.
 Also, all the notes to go with the financial report felt like it was above my level of understanding. It makes me aware, however, of all the work put in to show investors and likely others, the state of the company financially, economically, politically etc.  Business directors are very knowledgeable!
Lastly, the directors report. With all the information stated in there about all the different directors and their positions and qualifications. Not quite understanding why all this is relevant yet, but it wouldn’t be included unless with significant cause.

Areas of its business that seem most important or critical to me:
For me the most important areas of the business would just be what my company is already to trying to achieve in the field of renewable energy. That is - attempting to reach a stage of energy efficient lighting and making it cost effective too. This should be a priority. Looking ahead to an uncertain future creates doubts for everyone though. Things will change for sure over the 10-15 years, it is all just building up to that stage. This research and method of energy instantly becomes more relevant when thinking about how I/they could be effected.
Given the possibility that my kids could grow up, with renewable energy at hand. This is what makes it so important to me - knowing that there will be this new technology available in the future.  To some it may provide financial relief to some, but also has environmentally friendly benefits in the process. It could get very interesting to see how this field develops.

Key challenges my firm seems to be facing:
Greenearth Energy was forced to suspend Geothermal, a local (Australian) work program, after multiple talks were held between various departments and State (Victorian) and Federal Governments. This was decided considering the current and future position of this particular work program. The annual report states that Geothermal did not provide management with the confidence to progress at such a point in time. This ‘point of time’ would be referring to the hardship after an initial challenging financial year (13/14). It is now a slow progress and without direct support, the Government doesn’t hold high expectation regarding industry developments at this stage.
Another being, the consumer base at Greenearth Energy and NCF are focused on making a positive impact on the environment. This can be achieved by reducing their ecological footprint and by creating minimal wastage of resources, however, they face a challenging economic climate. All the solutions are required to be financially viable i.e. a financial return on investment, where the businesses overall performance is improved. All new products and solutions must fit certain guidelines as they are required, but the outcome must be beneficial for all parties.
Greenearth Energy could also face problems in regards to resources. Not necessarily now, but more future prospect.

How does my firm seem to be meeting these challenges:
These challenges are currently being dealt as seem best by Greenearth energy. Yes, the Geothermal work program was suspended here in Australia, but an opportunity has come up elsewhere - Indonesia. Geothermal resources are an increasingly significant source of renewable energy within Indonesia are there are a considerably large amount; reported to be at 40% of the world’s potential. So while the Australian program is closed for now, extra attention is being focused at Indonesia.
As Greenearth Energy works towards reducing their ecological footprint and minimal wastage of resources. This challenge is being faced every day by the company as they do their best to reach a desired outcome for everyone with in the field of renewable energy.

Apparent strategies:
The financial year of 2013/14 saw Greenearth Energy (GER) become clearly focused on a long term strategy with a heavy investment into establishing cash flow generating business units; Greenearth Energy Efficiency/Vivid Industrial and the longer term commercialisation business unit of NCF. With continued concerns around CO2, along with the ongoing development of ground breaking technologies, the opportunities for Greenearth only continue to grow. Both Industrial Energy Efficiency and CO2-to-Fuels sectors are at a stage where opportunities continue to grow and become a substantial discussion point for businesses and consumers internationally. 
Until further notice Greenearth’s Geothermal work program requirements in Australia has been suspended. This was executed during the financial year to ensure GER could deliver on its strategy in the future.

Concerns I have at this stage:
At the moment I am content with the company I have been given. It is an industry I am not very familiar with so it has made for an interesting task for me. I must admit that it’s been a bit of ‘fun’ challenge to get done though. It has been good to read up on Greenearth Energy and seeing the work they do and how it all gets done.
Asking me whether I would have preferred a different company is actually very hard to answer. It is hard for me to compare my current company to another I’ve never actually had. It would have been beneficial to receive a company I was more aware of, but getting one based on renewable energy is nothing to complain about. A very interesting field to invest time in and worth the reading to me. I don’t think I would change if given the opportunity.
My biggest concern is all about the annual report (2014). I have my doubts over whether I have analysed it properly or if I have grasped the key concepts. Upon first sight it is very daunting task to read through it with many others feeling the same way. I won’t be alone when saying I was confused by what to look for in the annual report, but with each company key concepts will differ.
I see by all the companies assigned to fellow students that there is a huge variety. As different as all our companies are there will be some with distinct similarities and differences too. With the presentation of annual reports, each and every company will follow their own outline and structure. However, all companies must follow set guidelines set by the AASB in terms of content. How it is displayed and presented is totally the company’s responsibility, and as for the length, it will always vary from business to business.

Discuss my KQCs on moodle:
I made a post on moodle posting some of my concepts and questions with the link below.

Matthew.
You have a great company. Greenearth Energy sounds like a fantastic company to be involved in, however your right when you consider the value companies like these add and influence Australia it is hard to see why they don't have more support not only from the public but also other companies. At least to try to raise awareness, inform and educate people. 
I was given an Australian retail company RCG corporation (The Athletes Foots & more) which I am enjoying learning more about however I was disappointed with their lack of green efforts, which I guess most people don't expect a retail company to be thriving with green averts, however this is the problem, if more organisations were involved more of the public would be as well.
I think people do realise the advantages of using green energy however it hard for us to look so far into the future and put ourselves out now. (sadly).
I recently watched a YouTube clip called, something like "solar freaking roadways" It’s a bit gimmiky but worth a watch though. It really opens your eyes to the technology that's out there and how it can really benefit the future of the world.
Great questions thanks for sharing.
Grace
It was good to get some feedback from someone in a totally separate industry, especially in retail. My response to her was a comment I made to her blog which can be found at the blog below.
Top 3 blogs:
A lot of effort goes into making a blog look so nice and I think Kailee has a great blog so far. It is full of great information about her company and was a nice read too! Definitely in my top 3. Her initial research into the company was a good basis and she has built from there. It has been beneficial for me as it is almost like an example for me to go by; a guide. It is evident that Kailee understands what is expected and her site is very easy to navigate and control.
Jodie was very open with her blog and I just connected with it from the beginning. I also appreciate the work she has put into it as well. Her company follows a lot of concepts and I consider it to be quite broad. I believe this is the best one so far that I have come across. The way she has summarised it, while keeping it all very simple. Great work! Will be keeping an eye on this blog for sure.

Natasha has nice blog in the making. It has a simplistic style but in many ways it stands out. The information she has provided isn’t overwhelming and very easy to understand. The pictures and memes add a bit of humour where everyone is engaged. It nice to see I’m not alone!

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