Analysis of Cash Flows, Other Comprehensive Income Statement and Corporate Income Tax of Ausdrill Limited

HI5020 Corporate Accounting
Assessment 2 – AUSDRILL LIMITED
STUDENT ID:
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Corporate Accounting
The company that has been selected for the given assessment is AUSDRILL.
CASH FLOWS STATEMENT
(i) The requisite screenshots from the FY2017 cash flow statement have been pasted to
highlight the key elements c
One of the key elements as indicated above is the customer receipts which unlike revenue
reflect the actual cash that the customers have paid to the company with regards to the goods
and services offered. It is apparent that there is a very marginal 1.5% increase in these
receipts. Another key element is the payment that is made to suppliers along with employees.
This is imperative in order to provide customers with products and services having
commercial worth. The increase in this regards in FY2017 is less than 1%. Besides, these
there are other items related to interest income and the underlying costs incurred in this
regards. Also, the income tax paid has also been reflected based on which it is apparent that
in FY2017, there is a significant jump over the previous year i.e. FY2016 (AUSDRILL,
2017).
Considering the capital intensive nature of the business, on expected lines the major element
is the investment on PP&E which amounts for the major portion and has seen a big jump over
the corresponding FY2016 which stood at $ 12.42 million. Besides this, there are payments
on account of other assets that the company has purchased whereas proceeds tend to emerge

Corporate Accounting
from the sale of businesses and financial assets. In contrast with FY2016 where there was a
net cash inflow to the tune of $ 60.85 million, FY2017 has a net cash outflow to the tune of
$101.13 million. This has been caused due to decrease in proceeds from sale of business on
one hand and increase in payments related to PP&E acquisition (AUSDRILL, 2017).
In relation the financing activities, the primary item relates to cash inflows and outflows
arising from the increase in borrowings and also repayments of borrowings. For instance, in
FY2016, the company made repayment to the extent of $ 38.1 million. However, there is no
repayment on this count in FY2017. However, unlike in 2016 when no dividends were paid,
the year FY2017 saw dividends to the tune of $6.25 million being paid to shareholders. The
company seems to be relying unsecured borrowings for the time being since the previous one
are repaid and incremental borrowings assumed. There is considerable drop in FY2017 cash
outflow on account of financing activities when compared with corresponding value in
FY2016 (AUSDRILL, 2017).
(ii) The three major cash flows trends as highlighted over the past three years have been
captured in the following table (AUSDRILL, 2017).
The key observations on account of the above cash flows are as follows (Deegan, 2014).
 The cash flow from operations has shown a slight dip which to an extent is attributed
to the customer receipts. Considering, that this dip is not significant, not much should
be read into this except that this presents the usual fluctuations.
 In relation to investing activities related cash flow, year FY2015 saw a mild outflow
but in year FY2016, there were significant cash inflows on the sale of business. This
coupled with limited spending on PPE implied a positive value for the investing