Data Gathering and Analysis Report Finance Improvements Rev 1.0

8/9/2019 Data Gathering and Analysis Report Finance Improvements Rev 1.0

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.T STAT6Y AN 6 3 .T " STY CNS*TANCY

A A. /*Y7S C7/ANY *.7.T

DOCUE!T TITLE"

DATA GATHERING AND ANALYSIS REPORT".NANC .7/7NTS

Propriet#ry Inform#tion !otice

T'is 9ocu(ent contains in4or(ation proprietary to yperion Syste(s nineerin /ulic *t9& T'isin4or(ation s'all not e 9isclose9 to t'ir9 parties nor repro9uce9 in %'ole or in part 4or any purpose

%'atsoever, %it'out prior %ritten per(ission o4 yperion Syste(s nineerin /ulic *t9&© 2011 yperion Syste(s nineerin - All ri'ts reserve9&

11&0$&2011 1&0 elease9 to custo(er SS S* A

D$TE %E&. !O DESC%IPTIO! P%EP$%ED CHEC'ED $PP%O&ED

DOCUE!T !O. C/7;C6112300001 %E&. (.)

Hyperion Systems Engineering Confdential & Proprietary

http://www.hyperionsystems.net/

http://www.hyperionsystems.net/



CST7 A A. /*Y7S C7/ANY *.7.T ATA 6AT.N6 AN ANA*YS.S /T

".NANC .7/7NTSN S A A. /*Y7S C7/ANY *.7.T

/<CT .T STAT6Y AN 6 3 .T " STY CNS*TANCY AT 11&10&2011

*CAT.N A A., A /A6 2 " 31

C*.NT 6 CNTACT N: 6S=10=.T=00$) .S.NS C/7;C6112300001 .S.N 1&0

T#ble of Contents

E*ECUTI&E SU$%+..............................................................................,

( I!T%ODUCTIO!....................................................................................-

1&1 Purpose........................................................................................................................................... -

1&2 Scope.............................................................................................................................................. -1&3 loss#ry.......................................................................................................................................... -

1&! %eferences...................................................................................................................................... -

/ O&E%&IE0 O1 $PP%O$CH.................................................................2

2&1 $ppro#ch O3er3ie4....................................................................................................................... 2

2&2 0or5shop Ob6ecti3es 7 $gend#...................................................................................................2

2&3 Schedule of on8site inter3ie4s.....................................................................................................9

: ST%E$ P%OCESS 7 ST$!D$%DS %E&IE0....................................;3&1 Introduction.................................................................................................................................... ;

3&2 <orouge Corpor#te Structure....................................................................................................... ;

3&3 <usiness Process %e3ie4........................................................................................................... (:

3&! St#nd#rds Compli#nce................................................................................................................(:

3&5 %egul#tory %e=uirements........................................................................................................... (:

> IT S+STES %E&IE0.........................................................................(>

!&1 Stre#m D#t#flo4........................................................................................................................... (>

!&2 IT System %e3ie4......................................................................................................................... (>

, $P $!$L+SIS 7 <USI!ESS %E?UI%EE!TS...............................(,

5&1 Introduction.................................................................................................................................. (,

5&2 #p $n#lysis................................................................................................................................ (,

5&3 <usiness %e=uirements.............................................................................................................. /9

yperion Syste(s nineerin Con4i9ential > /roprietary






*CAT.N A A., A /A6 3 " 31


List of T#bles

T#ble (" ?or@s'op aen9a&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&8T#ble /" Sc'e9ule o4 on-site intervie%s&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&8T#ble :" usiness reuire(ents&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&15T#ble >" A99itional usiness reuire(ents&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&2

List of 1igures

1igure (" oroue corporate structure&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$1igure /" oroue 4inance 9epart(ent oraniBation structure&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&121igure :" .T Application .n4rastructure&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&1!







*CAT.N A A., A /A6 ! " 31


Document Control

Customer A A. /*Y7S C7/ANY*.7.T oroueD

1ile !#me 258028262

Pro6ect.T STAT6Y AN 6 3 .T" STY CNS*TANCY %eference

Contract

BOROUGE CONTRACT

NO: GS/10/IT/0096

Document Title 258028262

$uthori@#tion

Process !#me 7 %ole Comp#ny D#te

$uthored by Stavros Spanos yperion 30&0$&2011

%e3ie4ed <y A9 os yperion 11&10&2011

$ppro3ed <y

Signed p#ge"







*CAT.N A A., A /A6 5 " 31


Executive Summary

T'is 9ocu(ent is 9esine9 to lay-out t'e current as-isD situation %it' rear9s to t'e applications an9usiness processes supportin t'e 4inancial operations o4 oroue& T'e 9ocu(ent %ill serve as t'e 4irstrevie% o4 t'e current .T syste(s %it'in t'e %or@strea( an9 'i'li't areas %'ere t'ese syste(s 9o nota9euately support t'e reuire9 usiness processes ap analysisD&

T'e actual 4inancial activities o4 oroue are outsi9e t'e scope o4 t'is proEect an9 t'ere4ore t'is current%or@strea(& at'er t'e 4ocus is on t'e intersection et%een t'e 4inancial activities o4 t'e co(pany an9t'e actual operations, speci4ically t'ose t'at %ill e i(pacte9 y t'e ne% pro9uction 4acility&

T'is 9ocu(ent %as enerate9 4ro( uestionnaires an9 intervie%s con9ucte9 %it' t'e 4inance 9epart(ento4 oroue over a nu(er o4 %or@s'ops& T'e results o4 t'ese %or@s'ops 'ave een collate9 into t'is9ocu(ent, %'ic' %ill 4or( t'e asis 4or t'e suseuent 9eliverales 4or t'is %or@strea(&

ecause o4 t'e speci4ic scope o4 t'is %or@strea(, this document is different from the m#6ority of the#s8is documents& T'e 4ocus in t'is 9ocu(ent 'as een on i9enti4yin t'ose areas %'ere t'e current4inance .T syste( i(pacts or is i(pacte9 y t'e pro9uction syste(s t'at 4or( t'e core o4 t'e current .T" stu9y&

?'ile t'e aps i9enti4ie9 in t'e 9ocu(ent are (ostly 4inance relate9 an9 t'ere4ore reuire a (oret'orou' analysis o4 t'e capailities o4 SA/ an9 an assess(ent o4 %'et'er to invest in a99itional SA/9evelop(ent or to consi9er an alternative approac', t'ere are t%o clear usiness reuire(ents t'at 'avee(ere9 4ro( t'e revie% o4 t'e aps i9enti4ie9 y t'e 4inance 9epart(ent:

1& T'e 4irst reuire(ent is to enerate etter plant pro9uction an9 consu(ption 9ata suc' as cane provi9e9 y a pro9uction accountin=9ata reconciliation syste(&

2& T'e secon9 reuire(ent is t'e nee9 4or oroue to consi9er (aster 9ata (anae(ent ot'%it'in co(ple# syste(s suc' as SA/ as %ell as %it'in t'e SA (i99le%are&







*CAT.N A A., A /A6 ) " 31


Intro!uction

1 Purpose

T'is 9ocu(ent is 9esine9 to lay-out t'e current as-isD situation %it' rear9s to t'e applications an9usiness processes supportin t'e 4inancial operations o4 oroue& T'e 9ocu(ent %ill serve as t'e 4irstrevie% o4 t'e current .T syste(s %it'in t'e %or@strea( an9 'i'li't areas %'ere t'ese syste(s 9o not

a9euately support t'e reuire9 usiness processes ap analysisD&

T'e actual 4inancial activities o4 oroue are outsi9e t'e scope o4 t'is proEect an9 t'ere4ore t'is current%or@strea(& at'er t'e 4ocus is on t'e intersection et%een t'e 4inancial activities o4 t'e co(pany an9t'e actual operations, speci4ically t'ose t'at %ill e i(pacte9 y t'e ne% pro9uction 4acility&

T'e 9ocu(ent t'ere4ore 9oes not provi9e a usiness process revie% ut rat'er provi9es an e#tensive listo4 potential areas an9 aps t'at e#ist in t'e 4inancial .T syste(s t'at (ay i(pact t'e operations o4 oroue 3 an9 are t'ere4ore can9i9ates 4or i(prove(ent, %'et'er y a99itional custo(iBation o4 t'eSA/ syste( or y t'e a99ition o4 ot'er (o9ules an9=or 3r9 party pro9ucts&

.n conEunction %it' t'e to-e 9eliverale %'ic' %ill uil9 on t'e in4or(ation in t'is 9ocu(ent, t'is9ocu(ent %ill 4or( t'e asis 4or t'e suseuent tec'noloy revie% an9 reco((en9ations 9eliverales

4or t'is %or@strea(, an9 %ill e use9 as a @ey uil9in loc@ 4or t'e co(pre'ensive .T stratey an9 "stu9y 9eliverales&

2 Scope

T'e pri(ary oEective o4 t'is 9ocu(ent is to e#a(ine t'e e#istin 4inancial operations o4 oroue an9 t'e.T syste(s t'at support t'e( in relation to t'eir capacity to satis4y t'e nee9s o4 t'e operations o4 t'eoroue pro9uction 4acilities, %it' speci4ic 4ocus on t'e ne% oroue 3 pro9uction 4acility&

T'e 9ocu(ent 9oes not a99ress t'e operations o4 t'e 4inancial 9epart(ent itsel4, an9 e#tensivealterations o4 t'e central 4inancial .T syste( SA/D are also not in scope&

3 G"ossary

A/: Au 'ai /oly(ers = oroue AANF: oroue Australia > Ne% Fealan9/T: oroue SinaporeSA: Services riente9 Arc'itecture

4 Re#erences

N=A







*CAT.N A A., A /A6 " 31


$ Overvie% o# Approac&

1 Approac& Overvie%

T'e as-is 9ocu(ent %ill e ase9 on ot' %or@s'ops an9 intervie%s %it' @ey oroue personnelinvolve9 %it' t'e scope o4 t'e present %or@strea(, an9 ase9 on yperionGs e#perience o4 si(ilar proEects an9 e#istin in9ustry est practice an9 applicale stan9ar9s&

T'e 4irst stae is to provi9e uestionnaires 4or @ey %or@strea( personnel an9 t'en to con9uct s(allroup %or@s'ops an9 intervie%s %it' t'e personnel to at'er in4or(ation on 'o% t'ey con9uct t'eir 9ay-to-9ay usiness an9 'o% t'e currently 9eploye9 .T syste(s support t'ese processes&

T'e yperion personnel %ill also revie% t'e potential i(pact o4 t'e ne% plant 9urin t'ese %or@s'ops to4or( a 9etaile9 vie% o4 'o% eac' strea( %ill nee9 to a9apt to (eet t'e c'allenes pose9 y t'e ne%oroue 3 pro9uction 4acilities&

A4ter t'e %or@s'ops, t'e yperion tea( %ill collate t'e results o4 t'e %or@s'ops an9 revie% t'e( in li'to4 t'eir e#perience& At t'is stae t'ere (ay e a99itional uestions 4or t'e oroue personnel %'ic' %ille co((unicate9 t'rou' e(ail& nce t'is is co(plete t'e yperion tea( %ill procee9 to lay out t'eusiness processes, t'e .T syste(s t'at support t'e( an9 con9uct a ap analysis ase9 ot' on internal

4actors 'o% t'e .T syste(s support t'e current an9 to-e usiness processesD an9 e#ternal 4actorsin9ustry est practice, stan9ar9s co(pliance etcD&

T'e 4inal 9ocu(ent %ill e 9elivere9 to oroue 4or revie%& .t is e#pecte9 t'at t'e 9ocu(ent %ill e (a9eavailale to oroue 2 %ee@s a4ter t'e %or@s'ops are co(plete9 an9 t'at t'e approval cycle %ill ta@e 1%ee@&

A4ter t'e 9ocu(ent is approve9, yperion %ill use t'e aree9 usiness reuire(ents as t'e asis 4or t'esuseuent 9eliverales, inclu9in t'e 4unctional 9esin, t'e solution reco((en9ations an9 t'e solutionproEect scope, c'arter an9 ti(e=cost esti(ates&

2 'or(s&op O)*ectives + Agen!a

T'e %or@s'op oEectives are:

1& iscuss %it' t'e "inance 6roup an9 recor9 in (ore 9etail :1& T'e pre-reuire(ents as t'ose %ere liste9 to yperion prior to t'e %or@s'op&2& A99itional reuire(ents t'at e(ere9 since t'e oriinal list %as co(pose93& A99itional reuire(ents t'at speci4ically relate to t'e oroue-3 e#pansion as t'ose

e(ere9 t'rou' t'e %or@s'op 9iscussions&2& "or eac' o4 t'e aove un9erstan9 t'e current situation As-.sD in ter(s o4 process an9 syste(s

4unctionality an9 capture t'e usiness i(pact&3& eri4y an9 vali9ate t'at in4or(ation %it' t'e roup an9 consoli9ate into a co(pre'ensive list to e

use9 4or t'e To-eD reco((en9ation&







*CAT.N A A., A /A6 8 " 31


T#ble (" ?or@s'op aen9a

%e=uirement $re# D#y (

((8Aul8/)((D#y /

(/8Aul8/)((D#y :

(:8Aul8/)((

Supplement#ryConf. C#ll:8Oct8/)((

"inance .(prove(ents =euire(ents Capture

H H H

"inance .(prove(ents =euire(ents ali9ation

H H H

3 Sc&e!u"e o# on,site intervie%s

T#ble /" Sc'e9ule o4 on-site intervie%s

!o. Inter3ie4ee <orouge Dep#rtment %e=uirement roup (:

17r& S'iu <osy T'o(as

Sr& Accountant"inance ept& ".NANC .7/7NTS

27r& ive@ Iu(ar Sr& Accountant

"inance ept& ".NANC .7/7NTS

3

7s& ?a4a Al 7eer

Syste( Analyst .T usiness Apps ".NANC .7/7NTS

!7r& Yasir A9ulla' I'an

Syste( Analyst.T usiness Apps ".NANC .7/7NTS

T'e 4ace-to-4ace intervie%s too@ place %it' t'e roup aove 4ro( t'e 11t' J 13t' <uly 2011 at t'e oroue'ea9 o44ice in Au 'ai, 4ollo%e9 y a nu(er o4 suseuent p'one an9 e(ail co((unication in t'e%ee@s a4ter, to collect a99itional co((ents an9 vali9ate so(e assu(ptions&

A supple(entary con4erence call too@ place on 3r9 ctoer 2011, to 9iscuss t'e As-.s situation an9aps=reuire(ents particularly relate9 to t'e /ro4it Centre Accountin processes an9 practises&







*CAT.N A A., A /A6 $ " 31


Stream Process + Stan!ar!s Revie%

4 Intro!uction

As state9 in t'e intro9uction, t'e pri(ary purpose o4 t'is %or@strea( %as to revie% t'e current 4inancial.T syste(s an9 to 'i'li't t'e areas %'ere t'e syste( currently 9oes not 4ully (eet t'e reuire(ents o4 t'e oroue 4inance 9epart(ent an9=or t'e reulatory or leal reuire(ents o4 oroueGs various areas

o4 operations&

oroueGs central .T syste( 4or 4inancial operations is SA/, an9 e#tensive alterations or replace(ent o4 t'is core syste( are outsi9e o4 t'e scope o4 t'e current proEect&

?'at t'e proEect %ill consi9er is t'ose areas %'ere t'e current syste( 9oes not currently (eet t'eusiness reuire(ents o4 t'e oroue 4inance an9 operations 9epart(ents, %it' speci4ic 4ocus on t'oseaps t'at %ill e e#acerate9 y t'e a99ition o4 t'e oroue 3 plant&

5 -orouge .orporate Structure

T'ere are t%o (ain *eal entities in t'e oroue 6roup:

• Au 'ai /oly(ers Co(pany *t9& incorporate9 in A, co((only re4erre9 to as A/ -co(pany co9e ()D

• oroue Sinapore /T *t9& incorporate9 in Sinapore, co((only re4erre9 to as /T -co(pany co9e ,)D

T'e A co(pany is a sinle leal entity %'ile un9er t'e Sinapore co(pany t'ere is a (ore co(ple#structure o4 susi9iaries (anu4acturin an9 sales=(ar@etinD, representative o44ices an9 ranc'es %'ic'cover t'e %'ole usiness o4 t'e roup in t'e Asia=/aci4ic reion an9 *eanon, as per t'e c'art elo%&

1igure (" oroue corporate structureyperion Syste(s nineerin Con4i9ential > /roprietary






*CAT.N A A., A /A6 10 " 31


Not visile in t'is c'art J un9er A/ t'ere are seven 'us or 9istriution centresD %'ic' enale t'e9istriution loistics:

- C u%ais istriution Centre %'ic' covers lan9 9eliveries o4 pro9ucts to t'e 6CC countries- /ort I'ali4a- /ort <eel-Ali- /ort 7ina Fay9e to e replace9 y /ort I'ali4a %'en 3 co(es on strea(D

- /ort S'an'ai- /ort 6uanBou- /ort Sinapore

T'ere is also an .nnovation Centre %'ic' %ill e 4or(ally estalis'e9 in 2012 in Au 'ai, %it' trans4er o4 personnel currently resi9in in t'e u%ais plant&

<orouge 1in#nce Dep#rtment B Org#nis#tion

T'e 'ea9 o4 t'e "inance epart(ent is t'e / o4 "inance %'o is co((on 4or ot' (ain co(panies, an9toet'er %it' t'e / o4 .T an9 / o4 /rocure(ent, report to t'e S/ o4 S'are9 Services %'o in turnreports to t'e C&

eportin to t'e / o4 "inance, are 4our 7anaers:

• 7anaer J Accountin 7i99le ast• 7anaer J Accountin Asia• 7anaer J Treasury• 7anaer J Controllin







*CAT.N A A., A /A6 11 " 31


T'e oraniBational structure is s'o%n in t'e 9iara(s elo% lue positions are ase9 outsi9e AD:







*CAT.N A A., A /A6 12 " 31


1igure /" oroue 4inance 9epart(ent oraniBation structure







*CAT.N A A., A /A6 13 " 31


6 -usiness Process Revie%

A revie% o4 t'e oroue "inance 9epart(ents usiness processes is outside the scope of this pro6ect& As state9 previously t'e 4ocus o4 t'is %or@strea( is i9enti4yin areas in t'e current syste( t'at (ay ei(pacte9 y t'e oroue 3 pro9uction 4acility an9 i9enti4yin aps in t'e capailities o4 t'e syste( %it'rear9 to t'e plant operations t'at (ay i(pact t'e capaility o4 oroue to rin t'e ne% 4acility to 4ullpro9uction status&

7Stan!ar!s .omp"iance

T'is is not in t'e scope o4 t'e current %or@strea(&

8 Regu"atory Re/uirements

T'is is not in t'e scope o4 t'e current %or@strea(&







*CAT.N A A., A /A6 1! " 31


$ IT Systems Revie%

9 Stream Data0o%

As note9 in t'e previous sections o4 t'is 9ocu(ent, a co(plete revie% o4 t'e .T syste(s involve9 %it' t'e4inancial operations o4 oroue is not in t'e scope o4 t'is proEect

10 IT System Revie%

T'e (ain in4or(ation syste( ac@one use9 y t'e "inance 9epart(ent is SA/& Currently t'e co(panyis usin SA/ CC 5&0& T'ere is a planne9 tec'nical upra9e to CC )&0 %'ic' is sc'e9ule9 to ein atK!=2011 an9 4inis' in K2=2012& T'e i(ple(entation is (ulti-currency %it' S ein t'e roupcurrency&

T'e SA/ (o9ules i(ple(ente9 to9ay in oroue are s'o%n elo%& Iey (o9ules use9 y "inanceepart(ent are 1ICO "inance=ControllinD, COP$ Controllin J /ro4itaility AnalysisD, an9 <0usiness ?are'ouseD&

1igure :" .T Application .n4rastructure

System Integr#tion

.nteration et%een SA/ an9 t'e ot'er oroue syste(s is provi9e9 y oroueGs custo( SA solutionase9 on Tico en9eBvous&

T'e nature o4 t'is syste( (eans t'at c'anes in t'e source or 9estination syste(s 4or 9ata s'oul9 noti(pact t'e actual SA/ syste( itsel4& T'e (i99le%are %ill e (o9i4ie9 as necessary to cope %it' t'e ne%9ata constructs&







*CAT.N A A., A /A6 15 " 31


1 GAP Ana"ysis + -usiness Re/uirements

11 Intro!uction

T'is %or@strea( 9i44ers 4ro( t'e (ore pro9uction orientate9 %or@strea(s suc' as atc' trac@in or *.7SD in t'at t'e core 4inancial operations o4 oroue are outsi9e t'e scope o4 t'e current 9ocu(ent&

ecause o4 t'is, t'is section 4ocuses on a series o4 speci4ic 4inancial reuire(ents %'ic' are reuire9 toe#ten9 t'e 4inancial SA/ syste(Gs usaility, ot' 4or t'e current oroue operations an9 4or 4utureoperations inclu9in oroue 3&

12 Gap Ana"ysis

As note9 in t'e section aove, t'e i9enti4ie9 aps are speci4ic aps in t'e current capailities o4 t'e4inancial syste( to support t'e operations o4 t'e 4inance 9epart(ent&

An e#tensive revie% o4 t'e current SA/ syste( is not %it'in t'e scope o4 t'e current proEect, 'o%ever t'epotential i(pact o4 t'e SA/ syste( on t'e current an9 4uture pro9uction operations environ(ent o4 oroue is consi9ere9 part o4 t'e proEect, an9 t'ere4ore t'is %or@strea( 'as capture9 t'e current aps

i9enti4ie9 in t'e SA/ syste( %it' rear9s to t'e 4inancial operations o4 t'e co(pany&7any o4 t'ese ite(s %ill nee9 to e a99resse9 as part o4 t'e onoin 9evelop(ent o4 oroue as a(ar@et-lea9in (ulti-national petroc'e(icals co(pany, an9 %'ile t'e proEect %ill not provi9e 9etaile9reco((en9ations on 'o% t'ese aps s'oul9 e a99resse9, it %ill provi9e a revie% o4 t'e aps an9speci4ic reco((en9ations 4or t'ose t'at coul9 9irectly i(pact pro9uction operations, speci4ically o4 oroue 3&

!ote" Alt'ou' t'is is in essence an AS-.S 9ocu(ent, alrea9y 4or (any speci4icreuire(ents liste9 in t'e tales elo%, t'e Comments pararap's a4ter t'e 9escriptiono4 t'e reuire(ent=ap in9icate t'e reco((en9e9 pat' to solve t'e prole(& T'ese o4 course %ill e 4urt'er clari4ie9 an9 presente9 in t'e 4inal 9ocu(ent&

T#ble :" usiness reuire(ents

!o. %e=uirement Description Comments

L2 *ealconsoli9ation • euire9 4or statutory reportin at all 6roup levels, as %ell as 4or

7anae(ent reportin at t'e oroue 6roup level&• All leal entities %or@ 4or consoli9ation an9 (anae(ent reportin on

<an-ec 4inancial year& T'e case is t'e sa(e 4or Ta# eportin %it't'e e#ception o4 .n9ia %'ic' reports 4or ta# purposes on Apr J 7ar&

• Consoli9ation 4or (anae(ent reportin is per4or(e9 on a (ont'lyasis %'ile proper *eal consoli9ation is 9one only yearly&

• Asset accountin %it' /arallel currency: "urt'er(ore, as part o4 t'e







*CAT.N A A., A /A6 1) " 31



annual leal consoli9ation process, oroue 'as to report an asset9isclosure as per ."S1) 4or t'e net e#c'ane 9i44erence arisin ont'e translation o4 t'e 4inancial state(ent 4ro( t'e 4unctional currencyinto presentation currency o4 t'e reportin entity oroue roupcurrency is SD& T'is revaluation is carrie9 out yearly as part o4

leal consoli9ation, so t'at t'e carryin a(ount o4 an asset 9oes not9i44er (aterially 4ro( its 4air value at t'e alance s'eet 9ate&T'ere4ore, 4or all o4 t'e co(pany co9es elo%, t'e 4i#e9 assets nee9to e revaluate9 4ro( 4unctional=co(pany co9e currency to roupcurrency SD& T'e 9i44erences et%een SA/ value in S %'ic'is 'istorical valueD an9 t'e revaluate9 value %ill e consi9ere9 astranslation reserve in t'e leal reportin

• .n t'e oroue-2 proEect t'ere %as a ne% co(pany setup co9e $$Dto accept t'e <ournal ntries resultin 4ro( t'is consoli9ation

e#ercise&• T'is 'elpe9, ut leal consoli9ation is still per4or(e9 (anually %it't'e use o4 #cel, a tas@ %'ic' eco(es very 9i44icult %it' t'eincreasin nu(er o4 leal entities& As t'e usiness ro%s, (oreentities %ill e create9 so t'ere is a nee9 4or a syste( to support t'isoperation&

• T'is syste( s'oul9 e 4le#ile an9 (ore scalale to a9opt (oreleal entities i4 t'ere is in 4uture&

• .t s'oul9 e investiate9 %'et'er t'e nee9 can e est 4ul4ille9 %it't'e use o4:

(a) Te EC!CS (Ente"#"$se Cont"o%%$n& ' Conso%$at$on

Sstem) mo*%e +$, $s #a"t o- te ECC5.0 ,o"e o"

() Te *se o- t$" #a"t so-t+a"e %$e O"a,%e #e"$on (tat

oes o--e" ette" "e#o"t$n& -eat*"es).







*CAT.N A A., A /A6 1 " 31



L3 SA/ ". an9SA/ Creconciliation

every (ont'

• very (ont' t'ere is consi9erale e44ort spent to (anually reconcilet'e "i#e9 Costs as t'ey co(e 4ro( ". an9 CC Cost Centre eportD4ro( C&

• T'e reason is t'at several e#pense transactions are entere9 %it'outein associate9 %it' a Cost Centre, ecause t'ey are part o4MproEects&

• T'e co(pany policy is 4ro( ti(e to ti(e to run a reconciliation in allopen proEects %'ic' results to a sinle transaction entryD t'at iseit'er entere9 as a alance S'eet entry i4 it is a lon ter( CA/OproEectD or a Cost Centre relate9 e#pense i4 it is a s(aller s'ort ter(proEectD

• euire(ent is 4or an auto(ate9 report %'ic' %ill 'i'li't all t'e9i44erences to assist in t'is (anual %or@&

• One +a to so%3e t$s $ss*e $s -o%%o+$n& te #%anne te,n$,a%

*#&"ae to ECC6.0 to $m#%ement te ne+ G4 +$, o--e"s a*to!

"e,on,$%$at$on +$t "ea%!t$me #ost$n&s to ot I an CO mo*%es. e

so*% note tat te $m#%ementat$on o- te ne+ G4 +$%% e $n te"ms

o- e--o"t ,om#a"a%e to a ne+ I/CO $m#%ementat$on s$n,e $t

mate"$a%% ,an&es te Gene"a% 4e&e"7s a",$te,t*"e.

• So*% A e,$e to sta +$t te o% G4 ten a +a to ea% +$t

te $ss*e $s to a te Cost Cent"e as te se,ona" oe,t e3en -o"

te #"oe,t #*",ases. o" t$s te stana" "e#o"t

S;A4R;8<01=611 ,an e *se tat #"o3$es stat$st$,a% an a,t*a%

oe,ts ,ost ,ente" "e#o"t.

L! .(prove9reportin 4or"inis'e9 6oo9san9 Spare /arts

• T'ere is no .nventory Aein Analysis report J neit'er 4or "inis'e96oo9s nor 4or Spare /arts&

• As a -$"st a##"oa, $t so*% e e>am$ne +ete" some stana"

"e#o"ts tat e>$st +$t$n ECC ,an #"o3$e t$s $n-o"mat$on (e.&. ?C@@

' ana%s$s o- $n3ento" t*"no3e" ?C@6 ' s%o+ mo3$n& $tems). I- not $t

so*% e e>am$ne +ete" te B ,o*% e *se to "a+ ata

an e%$3e" tese "e#o"ts.

L5 6eneral *e9erc'anes • Sales Transactions poste9 in t'e 6* 9o not (ention uantity J only







*CAT.N A A., A /A6 18 " 31



t'e (aterial co9e an9 value& T'e uantity 4iel9 s'oul9 e enale9&

• Can e one ,an&$n& te $e% Stat*s G"o*#s $n te "e3en*e

a,,o*nts o- te G4.

• .n A/ an9 /T alance s'eet ite(s relate9 to e(ployees e&& Car*oans, en9 o4 service pensions, ot'er receivalesD are poste9 in 6*%it'out recor9in t'e e(ployee nu(er& T'is 4iel9 s'oul9 eenale9&

• One +o"a"o*n $s to ,"eate a%% em#%oees as eno"s. Ten a%%

#a"o%% an t"a3e% ,%a$m #ost$n&s +$%% "e*$"e an em#%oee n*me".

A&a$n te -$e% ,an e ena%e ,an&$n& te $e% Stat*s G"o*#

"e%ate to tese a,,o*nts.

L oyalties

• oyalties are pai9 only to orealis on t'e asis o4 sales uantity J

not pro9uction&• i44erent oyalty rates per tonD apply to 9i44erent pro9uct ra9es or

4a(ilies o4 pro9ucts&• T'ose are accrue9 on a (ont'ly asis an9 pai9 on uarterly asis&• To9ay t'is is an entirely (anual process 9one on #cel ta@in sales

in4or(ation 4ro( C/A&• euire(ent is 4or oyalties to e auto(atically calculate9 an9

accrue9 per sales invoice 4ollo%in t'e si(ilar (et'o9 y %'ic'sales co((issions to oroue /T are calculate9D

• Special provision nee9s to e ta@en on t'e (et'o9oloy 4oroyalties calculations 4or ANF ecause o4 t'e sales usiness

(o9el 4ollo%e9&

• Can Sa%es tae #%a,e $n te S mo*%e. Te 3a"$o*s Roa%t

,a%,*%at$on o#t$ons nee to e o,*mente an $m#%emente $nto

S. $%% "e*$"e ABA +o".

L8- A

C'inese reports

• C'inese reportin is reuire9 4or C'inese susi9iaries 4or ot'statutory an9 ta# co(pliance purposes&

• Accor9in to our ac@roun9 in4or(ation c'ec@, (an9atory 4inancialreports reuire9 y t'e *a% in C'inese lanuae are alance S'eet,

/>* Account an9 Cas' "lo% Accounts&

• C$nese %an&*a&e +$%% e ena%e +$t te Un$,oe ,on3e"s$on tat

+$%% ,ome +$t te te,n$,a% *#&"ae to ECC 6.0 a%%o+$n& te







*CAT.N A A., A /A6 1$ " 31



#"o*,t$on o- te "e#o"ts.

• Te Bo"o*&e C$na $nan,e e#t. "e,o"e a%so te nee -o" a -*%%

C$nese a,,o*nt$n& sstem e>tene eon "e#o"ts to an

e*$3a%ent C$nese SA ( SA o" a t$" #a"t). SEE BELOW.

L8-

/arallelaccountinsyste( 4orC'ina ntities

• C'ina ntities are reuire9 to @eep 9i44erent set o4 oo@s as per ."Sroup reuire(entD an9 also as per local C'inese accountin 6AA/&T'is is ecause o4 9i44erent treat(ent o4 accountin transactions asper 9i44erent stan9ar9s&

• Currently, in C'ina t'e SA/ syste( is (aintaine9 per ."S, %'ile t'elocal 6AA/ au9it a9Eust(ent is (aintaine9 in #cel 4or au9itpurposes&

• T'is process reuires t'e Accountant in C'ina to (onitor closely onlocal 6AA/ a9Eust(ent yearly&

• ne e#a(ple is t'e case o4 ental o4 /'otocopier :o As per ."S it is an peratin *ease ut as per *ocal

6AA/ it is a "inance *ease&o A (anual re-co(putation=a9Eust(ent o4 9epreciation, "A

Cost, Acc epreciation, ental o4 uip(ent 'as to e9one to (eet t'e local 6AA/ reuire(ent

• It $s an esta%$se est #"a,t$,e $n SA to ma$nta$n $n #a"a%%e%

$--e"ent 3e"s$ons o- te same set o- oos as #e" $--e"ent

a,,o*nt$n& stana"s. It nees to e 3e"$-$e $- te 3e"s$on ,*""ent%

*se $n Bo"o*&e #"o3$es t$s -*n,t$ona%$t. E%se a t$" #a"t

a,,o*nt$n& so-t+a"e ma e ,ons$e"e.

L$ usiness Travel7anae(ent • To9ay usiness Travel e#penses suc' as per 9ie(s, transport, as

%ell as ta#es relate9 to t'ese are poste9 into 6* %it'out re4erence tot'e e(ployee see also reuire(ent L5D

• T'ere nee9 to e connections to t'e 6* 4or t'e ri't Cost Centres&

• SA T"a3e% ?ana&ement mo*%e +$%% #"o3$e te "e*$"e

-*n,t$ona%$t. A%so a%% em#%oees m*st e asso,$ate +$t ,ost

,ente"s so tat a%% t"a3e% e>#enses a"e #"o#e"% a%%o,ate to te

,o""e,t ,ost ,ente"s.

L80 A99itional toolsor • T'ere is a 9i44erence in t'e %ay ANF oroue Australia > Ne%







*CAT.N A A., A /A6 20 " 31



en'ance(ents4or intra-roupreconciliation

Fealan9D %or@s co(pare9 to all ot'er susi9iaries& ANF purc'ases4ro( A/ an9 t'en sells to its custo(ers& T'ere4ore it (aintainsinventory so it 'as no prole(&

• T'e ot'er co(panies purc'ase ac@-to-ac@ to t'eir sales an9 t'ispractice results to so(eti(es sales ein entere9 %it'out t'e

correspon9in C6S or vice-versaD& T'ere is a nee9 o4 C6S Jevenue (atc'in report&• To9ay t'ere is no auto(ate9 %ay to i9enti4y an9 reconcile inter-

co(pany transactions et%een roup co(panies& T'e prole(oriinates 4ro( t'e asence o4 a sinle transaction re4erence nu(er et%een t'e roup co(panies& T'e re4erence nu(er in t'e sellerGsoo@s is 9i44erent 4ro( t'e re4erence nu(er in t'e uyerGs oo@s&

• T$s $s not "ea%% a sstems $ss*e ' $t $s a #o%$, an a SA

$m#%ementat$on $ss*e.

• Te a,t$3at$on o- te T"a$n& a"tne"D ,on,e#t +$%% a%%o+

$m#%ement$n& an $nte"!,om#an #"o,ess. Inte"!,om#an sa%es o"

#*",ases +$%% e "e,o"e a*tomat$,a%% +$t te same "e-e"en,e

n*me" *s$n& te EI (E%e,t"on$, ata Inte",an&e) -*n,t$ona%$t an

IOC (Inte"me$a" o,*ments) an ten "e,on,$%$at$on +$%% e

#oss$%e +$t te *se o- te ICR (Inte" Com#an Re,on,$%$at$on)

?o*%e.

L81 6oo9s in transit6.TD issues inANF

• Currently, t'e co(pany policy is to reconiBe revenue ase9 on =* -ill o4 la9in 9ate& Since t'e sen9in location A/D reconiBes t'erevenue on t'e 9ay t'e oo9s are s'ippe9 =* 9ateD, t'ere is a nee94or t'e receivin location ANFD to recor9 6oo9s-in-transit 6.TD, inor9er to avoi9 reconciliation 9i44erences&

• BAN nees to $m#%ement a se#a"ate GIT %e&e" to "e,o" &oos

tat a"e $n t"ans$t e$te" -o"m A o" -"om Bo"ea%$s. U#on &oos

"e,e$#t GIT 4e&e" +$%% e ,%ea"e an te BAN G4 +$%% e

,"e$te.

• T$s $s not "ea%% a sstems $ss*e ' $t $s a #o%$, an a SA

$m#%ementat$on $ss*e.

L201"rei't Costsnot capture9 inC/A

• Trans4ers o4 oo9 et%een storae locations usD carry associate94rei't costs& e4ore t'e policy %as to inore an9 stoc@ %as value9t'e sa(e at every location

• Ne% policy reuires value o4 stoc@ at eac' location to e ur9ene9%it' t'e euivalent "rei't > pro9uct 'an9lin costs& T'is is 4or t'e







*CAT.N A A., A /A6 21 " 31



total inventory at a location an9 not 4or in9ivi9ual consin(ents&• T'is is 9one t'rou' t'e intro9uction o4 t'e MCostin S'eet in SA/

C (o9ule&• T'e prole( is t'at %'ile t'ese costs are capture9 in C, t'ere is no

lin@ to pass to C/A Jas a result t'e inventory values are 9i44erent in

t'e t%o (o9ules&

• Us$n& te Int"a!Com#an ,on,e#t a ne+ ,on$t$on ,an e "e,o"e

to ,a#t*"e te -"e$&t ,osts $n mate"$a% mo3ements ma$n& $t

a3a$%a%e to ot CO an COA.

L202/en9in Mopen/rocess r9ers • /rocess r9ers are issue9 to plants to initiate pro9uction o4 oo9s&

/ost pro9uction, t'ese process or9ers nee9 to e co(plete9=settle9&• Settle(ent is not 9one an9 as a result t'ere is a ac@lo o4 unsettle9

/rocess r9ers since t'e einnin o4 oroue 1 in 2001=2002&• .n t'e 4ra(e o4 oroue-2, a process or9er co(pletion routine %as

i(ple(ente9 in SA/ to settle t'ese open process or9ers, 4or a perio9o4 a (ont'& o%ever, %'en e#ecute9 t'is routine eins settlinor9ers 4ro( 2001 an9 leaves (any unsettle9 9ue to errors&

• T$s $s $nte"na% o*se ee#$n&D ' $t +$%% "e*$"e man*a% +o" *t $t $s

ne,essa" to ,%ean te #ast "e,o"s so tat te "e#o"ts +$%% +o"

#"o#e"%.

L203/ro9uctionCostin

Seuences

• /ossile (anu4acturin co(inations o4 (ac'ines=lines 4or t'e

(a@in o4 every pro9uct pro9uction versionsD are pre-9e4ine9 an9pre-coste9 in t'e /ro9uction 7aster ata s'eet in //&

• T'e sa(e in4or(ation e#ists in C 4or costin purposesprocure(ent alternativesD&

• T'ere is a nee9 to ensure t'at :o T'e pro9uction (aster 9ata is @ept up to 9ate in // %it' all

ne% e(erin co(inationso T'e correspon9in in4or(ation in C is @ept sync'roniBe9

%it' t'e oriinal in4or(ation in //

• T$s $s one o- se3e"a% "e*$"ements +$, $&%$&t te nee to

esta%$s a ,om#an!+$e ?aste" ata ?oe% an a3e a s*##o"tteam to #"o#e"% ma$nta$n $t.







*CAT.N A A., A /A6 22 " 31



L20!Neativet'ylene an97ono(ersD.nventory

• t'ylene consu(ption is auto(atically up9ate9 in SA/ t'rou' t'einteration %it' plant 9ata syste(s&

• t'ylene pro9uction is not up9ate9 auto(atically& .t is a (anual inputprocess 4ro( t'e plant operators& T'e sa(e stan9s 4or t'e oriinal4ee9stoc@ 4ro( pipelines into t'e t'ylene pro9uction units&

• T'is (anual input 4ro( t'e plant is not 9one reularly, %'ic' resultsto neative inventory in t'e accountin syste(s&

• "inance allo%s t'is to 'appen in or9er 4or t'e %'ole syste( to %or@,ecause i4 neative inventory is pro'iite9, t'en t'ere %ill e (oresevere 9isruption 9o%n t'e line& o%ever, t'is results to inaccuracies

• Nee9 to eit'er o "orce t'e plants to per4or( t'e (anual up9ate 9iliently

'o%ever, %'en plant is M4orce9 to 9o t'e up9ate, it reuires2 %or@in 9ays to reconcile t'e in4or(ationD

o Auto(ate t'is up9ate s'oul9 e possile ecause t'e real-ti(e plant 9ata syste(s cover all areasD


$m#%ement "o*,t$on A,,o*nt$n& +$, +$%% #"o3$e "e,on,$%e

mate"$a% a%an,e ata on a a$% as$s.

L205ill o4 *a9in.nclu9e ill o4 *a9in as a (an9atory 4iel9 in Sales ocu(ents invoices =9elivery notesD so t'at reports can e enerate9 an9 i4 o* 9ate 4alls into t'e4ollo%in (ont', a (anual a9Eust(ent o4 Sale an9 C6S is (a9e&

• A m$no" ,an&e +$, ,o*% e one $n o*se te $nte"na%

Bo"o*&e SA S*##o"t team.

L20)// > / Scrapuantity trac@in • Scrap is sol9 to t'ir9 party ven9ors&

• Transactions are entere9 (anually as 6* .nvoices ase9 on t'e9elivery note pro9uce9 4ro( t'e u%ais 7aterial an9lin%are'ouseD& T'ey are not associate9 %it' pro9uction or inventory or trace9 in any ot'er %ay&

• T'is is a potential au9it=ta# ris@ J not ein ale to Eusti4y t'e value o4 t'e scrap invoices&


$m#%ement "o*,t$on A,,o*nt$n& +$, +$%% #"o3$e "e,on,$%emate"$a% a%an,e ata on a a$% as$s.

• T$s +o*% e ,om$ne +$t a S,"a# A,,o*nt$n& #"o,ess tat ,an







*CAT.N A A., A /A6 23 " 31



e $m#%emente $n "o*,t$on Cost$n&.

L20-A

6asolineinvoicin • 6asoline is sol9 to Ta@reer&

• Transactions are entere9 (anually as 6* .nvoices ase9 on uantityprovi9e9 y t'e 7aterial an9lin %are'ouseD&

• T'ey pro9uction inventory in4or(ation e#ists, 'o%ever instea9 o4 t'einvoice issue9 t'rou' t'e S (o9ule, t'is (anual issue (et'o9t'rou' ". 9oes not 'ave an i(pact on inventory J it only a44ects 6*in ".D&

• T'e inventory is correcte9 (anually once a (ont'&

• Nees #"o#e" ,on-$&*"at$on o- te $n3o$,$n& #"o,ess $n S. • I- a##%$,a%e Gaso%$ne so*% a%so e ae as a !#"o*,t on te

BO? ($%% o- mate"$a%s) o- te #a"ent #"o*,t.

L20-

Tail 6asinvoicin • Si(ilar to 6asoline, aove, Tail 6as is also sol9 to Ta@reer, %it' t'e

sa(e current syste( s'ortco(ins&

• Nees #"o#e" ,on-$&*"at$on o- te $n3o$,$n& #"o,ess $n S (as #e"

sa%es &*$e%$nes e%o+).

• I- a##%$,a%e Ta$% Gas so*% a%so e ae as a !#"o*,t on te

BO? ($%% o- mate"$a%s) o- te #a"ent #"o*,t.

Tail Gas Sales Guidelines:

Bo"o*&e EU!2 %ant #"o*,es Ta$% Gas. T$s +$%% e s*##%$e to TAFREER ase on a&"ee mont% #%an an TAFREER *ses $t $n $ts G"een $ese% Un$t.

At te e&$nn$n& o- ea, mont Bo"o*&e sa%% s*m$t e>#e,te Ta$% Gas

SU4 *ant$t an *a%$t -o" tat mont to TAFREER.TAFEER +$%% "e3$e+ te$" "e*$"ements ase on G"een $ese% *n$t o#e"at$on an s*m$ts$ts E?AN "e*$"ements to BOROUGE an BOROUGE UHO.(Bot A on $n$3$*a% Com#an 4ette"eas).

Base on TAFREER eman Bo"o*&e +$%% s*##% Ta$%s Gas to TAFREER.

Te ta$% &as tat $s s*##%$e to TAFREER $s sam#%e Bo"o*&e %a an %a

sens te *a%$t ,e"t$-$,ate to Bo"o*&e /UHO. Bo"o*&e "e3$e+s an -o"+a"s te same to TAFREER e#t.

An %anne s*to+ns +$%% e ,omm*n$,ate e$te" #a"t to te ote" 90 as $n a3an,e an *n#%anne s*to+ns as soon as #oss$%e.

Bo"o*&e mete"s meas*"e te Ta$%s Gas s*##%$e to TAFREER $n ?ass *n$ts.







*CAT.N A A., A /A6 2! " 31



At te en o- ea, mont Bo"o*&e sa%% $nt$mate te t"ans-e""e Ta$%

Gas *ant$t an *a%$t to TAFREER /BOROUGE $nan,e a-te" 3a%$at$on -"om BOROUGE UHO O#e"at$ons.

BOROUGE $nan,e +$%% $n3o$,e TAFREER e-o"e 15 t o- ea, mont -o" te

#"e3$o*s mont *ant$t as #e" te -o%%o+$n&:

TAFREER +$%% #a te $n3o$,e amo*nt to BOROUGE e-o"e %ast a o- te

$n3o$,e mont -o" te #"e3$o*s mont *ant$t.

L208S'ort Ter(*iui9ity eport4or Treasury

• Treasury reuests a s'ort ter( cas'=liui9ity report to e calculate9ase9 on A J A/ J /ayroll&

• Analyse9 separately per currency

• Re*$"ement +$%% e -*%-$%%e $m#%ement$n& te TR!C? (T"eas*" '

Cas ?ana&ement) mo*%e. Te e--o"t "e*$"e $s ,ons$e"e to e

%$m$te.

L20$ Actual/ro9uction Costeport

• To9ay, actual pro9uction cost 4or a perio9 is calculate9 y (anuallyoin to every process or9er i4 settle9 J see L202D %it'in t'is perio9an9 9ivi9e t'e total cost y t'e total pro9uce9 uantity, to otain t'eactual unit cost&

• T'e report to9ay ives in4or(ation only 4or a speci4ic process or9er&?e nee9 t'is to e provi9e9 also 4or a perio9 provi9in averaevalues an9 analysis per pro9uct ra9e&


$m#%ement "o*,t$on A,,o*nt$n& +$, +$%% #"o3$e "e,on,$%emate"$a% a%an,e ata on a a$% as$s.

L20$ u9et7onitorin • u9etin to9ay is entirely 9one on #cel&

• T'is 9oes not allo% any auto(ate9 (onitorin o4 t'e u9et

• o" CAPEX *&et$n& te I? (In3estment ?ana&ement) mo*%e

a%%o+s *&et$n& to e $nte&"ate +$t te a,t*a% #*",ases an

,ont"o%s on a3a$%a$%$t at ea, *s$ness *n$t %e3e%.

• o" OPEX *&et$n& s$&n$-$,ant +o" +$%% e "e*$"e +$t$n SA to

$m#%ement *&et$n& -$e%s on e3e" ,ost ,ent"e an e3e" G4 %e3e%.

T$s e--o"t +o*% ,om#a"e to a &"ass!"oots $m#%ementat$on o- a t$"!

#a"t s#e,$a%$Je so-t+a"e ' me"$ts a ,ost/ene-$t ana%s$s o- a%%







*CAT.N A A., A /A6 25 " 31



o#t$ons.

L210 Custo(erState(ents • To9ay custo(er state(ents are sent entirely (anually& eports are

printe9, t'en scanne9 an9 4a#e9 or e(aile9&• T'ere s'oul9 e a %ay 4or custo(er state(ents to e sent

auto(atically eit'er event-ase9, or ti(e-ase9D• Te stana" SA t"ansa,t$on .2< ,an e *se -o" $ss*$n&/sen$n&

Statement o- A,,o*nt to ,*stome"s.

L211 Cre9it ol9 o4S'ip(ents • Nee9 4or an auto(ate9 %ay to release s'ip(ent to custo(ers %'ic'

are on cre9it 'ol9 or on a9vance9 pay(entD once t'e 4un9s arereceive9 into t'e oroue an@ account&

• Te "e%e3ant stana" SA t"ansa,t$on +o*% e F?1 -o" +$, an

a*tomate o nees to e s,e*%e.

L212Cost Centres

• T'ere is nee9 to revie%, re-vali9ate an9 clean t'e Cost Centres%'ic' are currently in use& T'ere are Cost Centers %'ic' are not inuse, in'erite9 y previous con4iurations o4 t'e syste(&

• T'ere is capaility 4or 'ierarc'y o4 Cost Centres %'ic' can eoraniBe9 in 6roups& ac' Cost Centre (ust elon to a sinle6roup& o%ever t'ere are cost centres t'at (ay e 4oun9 to elonto (ultiple roups&

• T'e na(in convention 4or Cost Centres is OO-000 %'ere OO is t'e

co(pany co9e an9 000 is t'e Cost Centre co9e& Anot'er 9i(ensiono4 t'e prole( is t'at t'rou' t'e years t'e various co9es in use areso a%@%ar9ly 9isperse9 t'at it is 9i44icult to 4in9 a place to enter ane% cost centre co9e&


esta%$s a ,om#an!+$e ?aste" ata ?oe% an a3e a s*##o"t

team to #"o#e"% ma$nta$n $t.

• Ea, Cost Cent"e as a 3a%$$t #e"$o.

• A ne+ set o- Cost Cent"es m*st e es$&ne -"om s,"at,

,ons$e"$n& te "e*$"ements o- Bo"o*&e!=. Ten a ,an&eo3e" ate

m*st e ,osen -"om +$, te ne+ ,ost ,ent"e st"*,t*"e +$%% e

a,t$3ate • Te o% ,ost ,ent"es +$%% "ema$n $n te sstem as $na,t$3e to e *se

-o" "e#o"t$n& on $sto"$,a% ata #"$o" to te ,an&eo3e" ate.







*CAT.N A A., A /A6 2) " 31



L213Not ein aleto calculate t'enet pro4it(arinD perpro9uct=custo(er an9 across t'e

co(pany

• oroue nee9s to (easure custo(er pro4itaility per pro9uct = perusiness unit = per custo(er per =.NC ter(s o4 sale transactions&T'is pro4itaility analysis is a oar9 level reuire(ent&

• T'ere 'as een a li(ite9 i(ple(entation o4 /ro4it Centers on t'e(anu4acturin si9e in A/, ut in 7ar@etin /CA %as never

i(ple(ente9& Currently t'ere is a separate onoin internal proEect4or 9evelopin pro4itaility reports in ? e#tractin 9ata 4ro( C/A&

• oroueGs usiness (o9el 'as eco(e (ore co(ple# t'rou' t'eyears:

o ?'en t'e syste( %as 9esine9 4or Cost an9 /ro4it centers,t'ere %as only one pro9uction entity A/D an9 one salesentity /TD& Since t'en oroue re% to setup(anu4acturin 4acilities an9 sales entities in 9i44erentcountries&

o T'e co(pany still 'as 4our s /ipe, "il( > 7oul9in, ?ire> Cale, 7oilityD ut t'ose are e#pecte9 to increase too,eit'er y a99in ne% 4a(ilies o4 pro9ucts or y splittine#istin s e&& "il( > 7oul9in splittin to "il( an97oul9inD

o .n a99ition to t'e (ultiple pro9uction locations, t'ere are no%also sucontract (anu4acturers in C'ina, %'o o4ten receiveinter(e9iaries, process t'e( to ot'er inter(e9iaries orpro9ucts an9 return t'e( to oroue, %it' t'e pro9uctioncosts c'are9 as a @in9 o4 Mservice 4ee& T'e output 4ro(su-contractor (ay e ta@en into stoc@ or sol9 9irectly tocusto(er, an9 t'e o%ners'ip o4 t'e oo9s re(ains %it'oroue t'rou'out t'e process&

o So, t'e transactional (ec'anics 'ave also eco(e (ore

co(ple#& "ro( t'e situation %'ere A/ %as t'e onlysupplier, no% t'ere is i(port, e#port, re-e#port 4ro( on9e9storae, an9 -turn sales

• T'ere is a stron nee9 to re9esin an9 properly i(ple(ent /ro4itCentre Accountin /CAD, in a %ay structure9 %it' a roa9 vie% in4uture& T'e /CA i(ple(entation is not a trivial tas@, since it involves(assive con4iuration=9evelop(ent c'anes %'ic' nee9 toacco((o9ate t'e 4ollo%in:

o Custo(ers are not uniue to a sinle , sales location or.NC ter(&

o Sa(e /ro9ucts can e sol9 4ro( (ultiple (anu4acturin4acilities, %it' potentially 9i44erent pro9uction costs&

o T'e ne% pro4it centers 'ave to ta@e into account t'e leal,







*CAT.N A A., A /A6 2 " 31



ta#ation an9 AT aspects o4 every possile transactionvariant&

o 7any e#istin (aster 9ata (ay 'ave to e re(appe9&o "or t'e ne% /CA to %or@ t'ere (ust e transparency o4

costs 4ro( A/ to /T an9 t'e ot'er %ay aroun9&•

T$s $s a "e*$"ement +$, oes not st"$,t% "e%ate to Bo"o*&e!=e>#ans$onK o+e3e" $ts a3e"se $m#a,t on te Bo"o*&e *s$ness +$%%

e,ome mo"e a,*te +en B!= ,omes on st"eam.




L21! irectConsu(ption o47aterial

• rror 4ro( /ro9uction Accountin unallocate9 M9e4icit o4 ra%(aterialD ets poste9 9irectly to Cost Centre %it'out associate9 %it'any /rocess r9ers


$m#%ement "o*,t$on A,,o*nt$n& +$, +$%% #"o3$e "e,on,$%e

mate"$a% a%an,e ata on a a$% as$s.

L215 7aterialaluation ClassCorrection

• T'e 7aterials Co9es 150 (aterialsD in t'e 7aterial 7aster ata7o9el nee9 correction& Catalysts are liste9 as A99itives, an9 ot'ersi(ilar 9iscrepancies&

• /ossily it (ay e 9one internally ut nevert'eless liste9 as areuire(ent




L21) Aevaluation o4t'e 2001openin alance

• n Au 1st 2001 9urin t'e (ove 4ro( t'e ol9 leacy syste( to SA/,t'ere %as a calculation o4 t'e openin alance in A an9 S ast'e roup currency&

• T'e rate A=S in t'e leacy syste( %as 3&, ut t'e rate inSA/ %as 3&)1

• T'is resulte9 to an in4late9 asset value o4 P31&2( %'ic' appeare9only in t'e S oo@s an9 'as een carrie9 over since&

• T$s $s not an IT $ss*e ! $ss*e ' so*% e an%e +$t a

mana&ement e,$s$on.







*CAT.N A A., A /A6 28 " 31








*CAT.N A A., A /A6 2$ " 31


$ddition#l %e=uirements $ssoci#ted 4ith <orouge :

T#ble >" A99itional usiness reuire(ents


L301 Separate/ro4itaility 4or

eac' p'ase • Au 'ai state provi9e9 invest(ent incentive in Ta# 'oli9ay&

o oroue-1 Ta# oli9ay en9s in ec 2013o oroue-2 Ta# oli9ay en9s in ec 2015

• "ro( <anuary 201! t'e co(pany is e#pecte9 to e ale toreport separately t'e pro4it enerate9 4ro( t'e 1 asset roup

L302 /ayroll Accountin4or secon9ees an9Contractors

• SA/ (o9ule 'an9les t'e eneral issues associate9%it' Secon9ees 4ro( orealis an9 ANCD an9 9irectContractors, ut not payroll, %'ic' is 9one (anually into 6*&

• Currently t'ere are $0+ secon9ees an9 15 9irect contractors%'ic' are e#pecte9 to increase 9ra(atically ecause o4 t'e 3

proEect• Ce, $- t$s $s to e ,o3e"e te SA R *#&"ae #%anne

-o" L2/2012

L303 3 Sales olu(eCapture • Alrea9y is reueste9 4ro( "inance 4or usiness plannin

purposes to create (aterial co9es, pro9uct recipes an9 ot'ercostin ase in4or(ation 4or oroue-3 assu(ptionsD

• .4 'istory %ill e repeate9 %'at 'appene9 %it' oroue-2Dt'ese ase in4or(ation %ill NT e retrospectively re-vali9ate9revie%e9 an9 up9ate9 accor9inly a4ter 3 co(es on strea(&

T'ey %ill e auto(atically passe9 on an9 eco(e unreli#ble operational 9ata&

• TIS IS NOT A RELUIRE?ENT ER!SE. TIS IS INANCE

EART?ENT IG4IGTING A BA BRACTISE O TE

AST IN ORER TO BE AOIE IN TE UTURE.

L30! .nvest(ent Approval "or(s • .nvest(ent Approval is a %or@ process %'ic' is paper-ase9,

ti(e consu(in an9 %it' (any aps&• T'e co(ple#ity o4 t'e prole( %ill e increase9 %it' t'e

einnin o4 t'e oroue-3 proEects an9 t'e several

associate9 approvals&• o" CAPEX $n3estments te I? (In3estment ?ana&ement)

mo*%e a%%o+s *&et$n& to e $nte&"ate +$t te a,t*a%







*CAT.N A A., A /A6 30 " 31



#*",ases an ,ont"o%s on a3a$%a$%$t at ea, *s$ness *n$t

%e3e%.

• Te *$%t!$n +o"-%o+ ,a#a$%$t$es o- te mo*%e m*st e

$n3est$&ate -*"te" ' #"oa% te +o*% e ae*ate to

a*tomate te *s$ness #"o,ess. E%se $t +o*% "e*$"e

a$t$ona% *t$%$Jat$on o- te B -*n,t$ona%$t.

13 -usiness Re/uirements

T'e aps i9enti4ie9 in section 5&2 'i'li't several areas t'at i(pact t'e potential pro9uction operationso4 oroue, an9 %'ic' %ill 'ave a 9irect i(pact on t'e success o4 t'e oroue 3 .T environ(ent& .nconEunction %it' t'e (ore eneralise9 4inancial i(prove(ents 'i'li'te9 aove, t'ese 4or( t'e (aEor reuire(ents 4ro( t'e current as-is stu9y&

Production $ccounting

A nu(er o4 t'e 4un9a(ental pro9uction 9ata aps in t'e SA/ syste( L20!, 20), 20$, 21!D illustrate t'enee9 4or a etter 9ata reconciliation an9 pro9uction accountin process to e i(ple(ente9 at oroue&T'ese 9ata aps %ill only e e#acerate9 y t'e a99itional pro9uction 4acilities an9 t'ere4ore t'ei(ple(entation o4 a pro9uction accountin syste( eco(es even (ore i(portant&

Unified #ster D#t# odel

ne o4 t'e core a9vantaes o4 an SA (i99le%are solution as 'as een 9evelope9 internally y oroueis t'at t'e (aster 9ata (o9el 4or all s'are9 9ata oEects is (anae9 %it'in t'e SA an9 in9ivi9ualsyste(s are t'ere4ore relatively s'iel9e9 4ro( variations in (aster 9ata in ot'er syste(s&

o%ever t'is 9oes not necessarily a99ress t'e reuire(ents o4 (aster 9ata t'at is not necessarilys'are9 et%een syste(s, an9 in t'e case o4 a co(ple# syste( li@e SA/, %'ere (ultiple (o9ules s'are

(aster 9ata an9 t'e nee9s o4 t'e various (o9ules in ter(s o4 9ata structure an9 reportin 9o not al%aysalin, t'ere is an al(ost inevitale 9ri4t 4ro( t'e oriinal 9ata (o9el as (ore oEects or in9ee9 entirene% (o9ulesD are a99e9 to t'e core 4unctionality&

7aster 9ata (anae(ent continues to e a (aEor issue 4or al(ost all co(ple# .T syste(s an9environ(ents& T'e (aster 9ata aps i9enti4ie9 in t'is %or@strea( L203, 212, 215, 30!D 'i'li't t'enee9 4or oroue to consi9er (aster 9ata (anae(ent %it'in co(ple# syste( suc' as SA/ as %ell as int'e SA (i99le%are&

1in#nci#l Systems #ps

T'e (aEority o4 t'e aps i9enti4ie9 in section 5&2 aove relate to speci4ic areas %'ere t'e current SA/syste( #s currently implemented 9oes not (eet t'e reuire(ents o4 t'e 4inance 9epart(entsG usinessusers& As %it' al(ost all 4inancial 9epart(ents, t'ere are a nu(er o4 activities %'ic' are still larelycarrie9 out in #cel 4or instance u9etin L20$DD&







*CAT.N A A., A /A6 31 " 31


T'ere are a nu(er o4 %ays to consi9er a99ressin t'ese 4inancial aps an9 t'e to-e report %ill loo@into t'ese in (ore 9etail&

Documents

Data Gathering and Analysis Report Finance Improvements Rev 1.0