Consider this - for a company which acquired an entire processing plant /operation, as well as having 6 farms to work, the total capital expenditure (investing cashflow) commitment during F17 was $1.011M. Of this, $580,000 was spent during SepQ16, as the following table demonstrates:
|
 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
| 1 |
Item
|
SepQ
|
DecQ
|
MarQ
|
JunQ
|
F17
|
| 2 |
Invested effort
|
|
|
|
|
|
| 3 |
- PPEQ
|
285
|
113
|
109
|
78
|
585
|
| 4 |
- Other NCASS
|
297
|
182
|
0
|
5
|
484
|
| 5 |
= Raw Investing outflow
|
582
|
295
|
|
83
|
1,069
|
| 6 |
Disposals
|
|
|
|
|
|
| 7 |
- PPEQ
|
2
|
2
|
54
|
0
|
58
|
| 8 |
= Net Investing CF
|
580
|
293
|
55
|
83
|
1,011
|
| 9 |
|
|
|
|
|
|
| 10 |
Dep’cn Exp H17
|
|
482
|
|
|
|
So, BOD's mantra of being cash neutral QonQ is achieved in part through deferring on CAPEX commitments /spending /refreshing of assets, as well as deferring payment of accrued ADMIN fees, etc. In some ways, this sounds like another VDL (just by different name, and different origin of ownership). In other words, through financial chicanery, the BOD managed to be CF neutral (so to speak), not because they are running the business efficiently, profitably, effectively, and currently (ie: current assets, refreshed, at their peak, instead of risking being run down, etc).
