Corporate Governance and Ethics Analysis: Ausdrill Limited

This report provides a comprehensive analysis of the corporate governance and ethical practices of Ausdrill Limited, a prominent mining company. It begins with an executive summary highlighting the company's acquisitions, sales, and financial performance, including labor expenses and depreciation. The introduction emphasizes the importance of government ethics in resource building. The discussion section introduces and summarizes Ausdrill, detailing its history, acquisitions, and financial performance. It further examines the company's corporate governance, including board composition, reports from the Chairperson and CEO, and the remuneration report. The report explores board orientation and interprets company communications using Legitimacy Theory. The analysis incorporates key financial variables and assesses the impact of resource development on the Australian mining industry, emphasizing the importance of ethical practices and effective board management.

Running head: Corporate governance and ethics
CORPORATE GOVERNANCE AND ETHICS
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Corporate governance and ethics
Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
1. Introduce and summarise the company..................................................................................3
2. Summary of corporate governance at your company............................................................5
2.1 Composition of board.......................................................................................................5
2.2 Reports from Chairperson and CEO.................................................................................5
2.3 Remuneration report.........................................................................................................6
Base pay and benefits.................................................................................................................6
3. Board orientation....................................................................................................................7
4. Interpretation of company communications using Legitimacy Theory.................................7
Conclusion..................................................................................................................................9

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Corporate governance and ethics
Executive summary
The company is performing well. In 2012, the AUSDRILL LIMITED Company has
acquired about 100% stacks of Best Tractor Parts business for consideration at a huge amount
of AUD 165 million. With the acquisition, the company is slowly building its composition
towards the involvement of the mining and drilling industries. In the year 2016, the company
sold the Drilling tools for Australia business to Robit Plc to about AUD 66 million. In the
same year, the company exited the DT HI Load truck tray manufacturing business. The
labour expense of the company increased by 18% and the main reason is the increase in the
headcount ratio in Africa from 2791 to 3216 and the amount of depreciation expense has
increased by 19.9%.
Through the use of better accessibility of resources, the improvement in the
innovation and drilling tools will definitely increase the implementation that has pertained the
improvement in the operating and investment activities. The company is now one of the most
important mining company in Australia and in order to do this they have to burn lots of cash.

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Corporate governance and ethics
Introduction
The main purpose of the report is to highlight the importance of government ethics
that will be helpful for the development of resource building process. The report will identify
the process that will identify the corporate governance and the ethics that are mainly
responsible for smooth performances of the company. In order to increase the corporate
ethics, the study has taken into account the composition of the board members and how the
board members will be willing to develop the policies that will increase the overall efficiency
of the AUSDRILL LIMITED Company. In order to identify the resources that are required to
increase the efficiency level, the study has taken into account, the composition of the board
members and the report of CEO and Chairman regarding the policies of counter attacking the
negativity of business accounting. In order to complete the corporate governance the
application of Agency theory and Resource dependency theory has been used. Essential
outcome that will be associated with the study is that the effectiveness of company board
members in meeting the negativity.
Discussion
1. Introduce and summarise the company
The company has emerged to one of the mining companies in Australia starting its
journey as the drilling company. In 1997, the company has purchased the drilling
equipment’s and entered the market of drilling permanently. In the year 1998, the company
formed an alliance with Henry Walker Eltin to form the Australian mining industry. On the
other hand, through the development of resources and their capitals, the company is entering
the drill market. The AUSDRILL LIMITED Company has also purchased number of
diamond communications that has enabled the company to increase their market share in the
engineering grounds and have increased their involvement in the drilling and mining industry

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Corporate governance and ethics
(Ausdrill. 2019). The company has recruited more than 7000 employees across twelve
countries. The company is doing business in 12 integrated mining business. In 2012, the
AUSDRILL LIMITED Company has acquired about 100% stacks of Best Tractor Parts
business for consideration at a huge amount of AUD 165 million. With the acquisition, the
company is slowly building its composition towards the involvement of the mining and
drilling industries. In the year 2016, the company sold the Drilling tools for Australia
business to Robit Plc to about AUD 66 million. In the same year, the company exited the DT
HI Load truck tray manufacturing business (Ausdrill. 2019).
In the year 2017, the company successfully raised almost AUD 100 million of
revenue growth to the growth of the fund. In the year 2018, big success came for the
company in the form of purchasing more than 100% of Bar Minco, a leading underground
hard rock mining sectors that made the company second largest company indulged in the
drilling and mining industry.
The company has successfully earned revenue amounting to about $887.3 million of
revenue. The AUSDRILL LIMITED Company has successfully extended contracts and new
jobs worth AUS 500 million. In the year 2017, the company had a EBIT of about 73.5% and
in the year 2018, the company got EBIT of about 103.5%. Increase in income after deducting
tax and interest is showing the fact that the company is increasing the income (Ausdrill.
2019). It is important in the sense that through the development of economic resources and
financial variables so that the Australian mining industry will get boosted in the production
level.
The labour expense of the company increased by 18% and the main reason is the
increase in the headcount ratio in Africa from 2791 to 3216 and the amount of depreciation
expense has increased by 19.9%. The company is using the improved level of the resources,

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Corporate governance and ethics
in order to bring the innovation in the mining industry. Through the incorporation of better
policies will automatically improve the development of resources distribution that will
increase the resources canalisation techniques. On the other hand, using the better
technologies will be able to increase the production technology and the company will looking
forward to incorporate better human and capital resources that will increase the overall
production ability of the company and the human resources.
2. Summary of corporate governance at your company
2.1 Composition of board
In most of the companies, the composition of the board mainly consists of chairman
and according to law of LODR for Listed Companies (Listing Obligations and Disclosure
Requirements) about 50% of the company directors should be non-executive directors. On
the other hand, some of the members that are mainly consisting the board of directors will
basically consists of members from audit committee, members of nomination and
remuneration committee, stakeholders committee members and risk management committee
members. Chairperson of the company is not an independent director because of the fact that
in order to take any kind of big decision, the chairman of the company alone will not be able
to take the decisions. This is important factor behind the development of the company as the
decisions to be taken for the benefit of the company (Ausdrill, 2019).
2.2 Reports from Chairperson and CEO
The main report that has been taken from the point of chairman and CEO is that in
order to increase the development of effectiveness of preparing the annual report, the
AUSDRILL LIMITED Company has successfully contributed to the auditors independently
and the collaboration with the independent auditors has not only induced the company to

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Corporate governance and ethics
clearly stating their key financial variables in the form of balanced sheet, income statement,
cash flow statement and many more.

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Corporate governance and ethics
2.3 Remuneration report
Highlighting the remuneration report it is important for the company to identify the
members that earn the money from the company. The elements of the remuneration is
basically base pay plus benefits, including superannuation, short term performances
incentives, and long term incentives through participation in Ausdrill Employee participation
plan. Now the remuneration of the employee is going to identify the cash flow and the
company is producing the development of cash flow.
Base pay and benefits
The employees are getting base pay plus based on the company packages and the
benefits that they are getting is actually matching with the prescribed benefits of the
company. It is important in the sense that executives are given fixed amount of payment and
the remuneration committee is basically increasing the development of the resources. In order
to increase the employee participation rate the executives are being paid on the basis of
comparative incentives and the development of resources will be more agile in nature. There
is guaranteed pay of fixed amount and there is no guaranteed increase of the payment
(Ausdrill. 2019). Through the incorporation of effective business, the superannuation benefits
that are given to the employees are not included in the remuneration reports (Ausdrill, 2019).
Now the retirement benefit plans are one of the important component of remuneration report.
This is included in the base payment because of the fact that in order to increase the
development of resources it is important for the country and the government to indulge better
relationship with the stakeholders.
In order to increase the development of resources, the Ausdrill Company is basically
looking forward to increase the development of resources so that the company will be paying
highly and effectively.

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3. Board orientation
Taking into account the development of overall resources activities will increase the
strength of the company to use the required level of useful materials and the company is
basically willing to indulge the incorporation of better possibilities that has pertained the
improvement in the development of company. In order to increase the overall resources
development will not only bring the improvement within the financial variables will
definitely induce the overall potentiality in bringing effective leadership and contingency
theory. The company is mainly looking to indulge the better policies so that the position of
the company will definitely improve and in order to increase the development of resources, it
will be crucial for the company to carry on their mining and other activities regarding the
development of mining trades. Through the use of better accessibility of resources, the
improvement in the innovation and drilling tools will definitely increase the implementation
that has pertained the improvement in the operating and investment activities. The company
is now one of the most important mining company in Australia and in order to do this they
have to burn lots of cash.
Through the incorporation of better technologies the development of resources is
going to include the development is going to increase the board of members is going to
increase the stakeholders is going to increase the development of the company. It is highly
important for the company to constitute perfect board members so that they can take perfect
decisions that will increase the overall resource development in the form of increasing human
and capital resources. It is highly important to find the right guy for the board orientation that
will increase the overall level of efficiency. It is highly important in the sense that through the
increased level of board orientation the company is going to increase the scope of future
aspects. It is important aspects in the sense that through the development of accounting
principle the company will be aiming to increase the level of investments in future. Through

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Corporate governance and ethics
the incoming of FDI the company will be aiming to increase the level of resources that will
automatically increase the improvement of amount of investment that will definitely help the
company to maintain certain rules and regulations.
Through the incorporation of effective policy will induce the economic activities to
indulge the development of resources in an effective way. On the other hand, using the
technologies will definitely increase the long run future operation of the company. It is an
important aspects in the sense that through the development of resources in form of both
investment opportunity and funding investment. Board orientation is required and in order to
achieve future growth of the company is mainly AUSDRILL LIMITED Company is going to
indulge the improvement in the economic activities. Through the constitution of board
overboard, the company will be aiming to increase the overall level of the development in the
mining industry.
The main responsibility of the board members is to increase the overall reputation of
the company in bringing out full employment and in order to indulge better planning and
corporation. So in order to increase the level of the impact of both the Ceo and the
chairperson the company is mainly willing to increase the development of equipment. It is
important to increase the overall development of the economy and the company will be
mainly willing to increase the development of resources identification.
Through the improvement of economic and as well as company initiatives the
economy will be mainly aiming to increase the innovation in the economy. Through this, it is
important for the AUSDRILL LIMITED Company to bring out better and effective level of
investment that is going to increase the development of overall information to increase the
level of income. Through the use of legitimacy theory, the communication gap will be
minimised. It is important for the benefit or the factor of investment to indulge in the

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Corporate governance and ethics
development of better accessibility to incorporate the development of economic activities to
pertain in the economy. The economic activities and the financial activities that are mainly
going to increase the development of resources to increase the effectiveness of the economy.
In order to highlight the importance of resource it is important to bring the best members on
board to fight all the negative aspects of the company. Through the incorporation of better
development of the resources and activities, the company will be mainly aiming to indulge
the development of economic indulgence.
The development of board will be aiming to increase the overall resource distribution
to bring in better and cumulative income level. It is important for company to increase the
level of efficiency of human and capital resources. It is an important aspect in the sense that it
will definitely increase the development of production ability of the resources. The labour
expense of the company increased by 18% and the main reason is the increase in the
headcount ratio in Africa from 2791 to 3216 and the amount of depreciation expense has
increased by 19.9%. The company is using the improved level of the resources, in order to
bring the innovation in the mining industry. It is important in the sense that through the
increased level of resource productivity that will increase the resource distribution. Through
the indulgence of capital resources the company will be aiming to increase the investment in
both human and capital resources.
4. Interpretation of company communications using Legitimacy Theory
Using Legitimacy theory and the communication the organisation will mainly looking
to increase the development of resources and the level of communication. The company
through the communication is mainly indulging the innovation in the technologies that are
being used within the company. The theory is the pillar of relationship among the
performances of the organisation and the social expectations that has enabled the
improvement in the CSR of the Ausdrill Company towards the society. It is important in

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Corporate governance and ethics
nature regarding the fact that in order to indulge the resource capabilities, the performances
of the organisation is depending on the social expectations. On the other hand, through this
theory, the existence of organisation is established both by the strength of the market and
social expectations and stranding by the social deal will more or less depends and will
determine the improvement in the financial performances of the company. In determining the
physical infrastructure it is responsibility of the company to think of social damage the
development is bringing in. In order to survive in the market, the communities expectations
will be one and only pre-requisite conditions.
This will determine the level of tastes and preference the company is having and in
order to indulge the improvement in the development of data will bring more or less
improved level of technology. Corporate annual report is the tool to maintain the legitimacy
relationship with the organisation. The value system of any organisation is mainly congruent
with larger interest of the community. The main role that is played by the country and the
rules and regulations is to maintain that congruency and the mining industry of the Australia
will improve them in order to bring that level of effective relationship. It is important in the
sense that through the incorporation of better and effective level of customer attractions the
Ausdrill Company will be mainly looking into the development of basic relationship with the
environment and other activities. It is highly important for the policymakers to increase the
development of resources through maintaining harmony with natural environment that has
implied an improvement in the development of better customer and common people
interaction.
Changing expectations of the society and engaging them with the revenue of the
company is mainly inducing the government and the company to indulge the development of
better techniques for the production ability. On the other hand, using the techniques of the
economic counterparts, it is important for the Ausdrill Company to increase the level of

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Corporate governance and ethics
legitimacy that will not only induce the improvement in the business but will definitely allow
the economic benefits to reap faster. It is highly important for the company to increase the
development of resources and inducing the communication level in order to identify the tastes
and preference of the consumers. It is important in the way as through the incorporation of
better accessibility will definitely indulge the improvement in the economic activities.
Through the increased level of resources, the company will mainly deal with better boosting
technology.
Conclusion
The overall study is going to highlight the overall performances of the company in
both domestic and international market and it is important in the sense that through the
improvement in the policy and the communication level, the whole economy is mainly
induced to increase the development of resources. Through the resources mobilisation the
government and the Ausdrill Company will definitely indulge the recruitment of proper
activities that will definitely increase the performance of the company. Through the use of
Legitimacy theory and the communication the organisation will mainly looking to increase
the development of resources and the level of communication. The company through the
communication is mainly indulging the innovation in the technologies that are being used
within the company.

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Corporate governance and ethics
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