A Study On Financial Control Of The Chinaust Group Co., Ltd

With the speedup of the global economic integration, the market competition becomesmore and more fierce. In order to survive and develop, lots of companies establish corporationgroups. During the collectivization, the groups expand the control on their asset scale. How tocontrol the finance becomes more and more essential: to control it excessively will injure itsmember company’s competitiveness; to control it weakly will threaten the groups’ survivaland their development. Our national groups should pay close attention on how to control thefinance of each member company.Firstly this document introduces the definition of corporative groups, and the theories offinancial control. Then it mainly discusses corporative groups’ financial management andcontrol options and specific content from three aspects, including the control models, thesetup of method system and its final supervision. It is said that a whole financial controlprocess includes three succeeding steps: before-hand control, in-process control andafter-hand control. The financial control mode, control process and its supervision consist ofthe whole financial control system. Based on the author’s work experience and thought in thefinancial management department of corporative group, the author introduces and analyzesthe control method of finance in detail through specific cases. The author also proposes someideas and some improvement advice. Finally the author points out that the financial control ofcorporative groups keeps changed and developed. In the fierce competitive and changingmarkets, the development strategy of corporative groups also keeps change, which willchange the financial control model, and its relative control method will also be adjusted.There is no best control, but the most suitable control.This document has5chapters.Chapter1clarifies the purpose and its meaning of financial control, introduces local andinternational corporative groups’ financial control effects, and introduces some otherdocument and the study idea of this document.Chapter2introduces the theoretical fundamentals of financial control, including the definition of corporative groups and their fundamental theories and their financial controltheories.Chapter3introduces from before-hand design to the process execution to after-handsupervision, the whole process financial control, the general principle of financial control anddesign to subsidiaries, three financial control modes and five considerations, including thecompany’s development strategy, the group’s industry selection, the group stage ofdevelopment, the parent company and subsidiaries associate degrees as well as culturaldifferences. It includes five aspects: budget management, financial information control,financial personnel management, important financial matters approval and group’s fundingcentralized management and control. And the author explains the corporative groupperformance evaluation, incentives and monitoring mechanisms from hand-aftersupervision.Chapter4introduces specifically the financial control system and its actions of ChinaustGroup, in which the author works, including the analysis of management model, capitalcontrol, budget management, performance evaluation, and internal audit, especially the usageand some ideas of group company’s capital pool.Chapter5gives the study results and inspiration of group financial control, based on thestudy of the financial control of the author’s group.