Tradewinds Sdn Bhd

INTRODUCTION

Financial statements provide an overview of a business or person's financial condition in both short and long term. All the relevant financial information of a business enterprise presented in a structured manner and in a form easy to understand, is called the financial statements.

There are four basic of financial statements including balance sheet that referred to as statement of financial position or condition, reports on a company's assets, liabilities, and net equity as of a given point in time and Income statement also referred to as Profit and Loss statement that reports on a company's income, expenses, and profits over a period of time. Income statement provides information on the operation of the enterprise and also including sale and the various expenses incurred during the processing state.

Other two financial statements including statement of retained earnings which explains the changes in a company's retained earnings over the reporting period and also statement of cash flows which reports on a company's cash flow activities, particularly its operating, investing and financing activities.

Otherwise, financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.

In this report, we are required to choose two companies in the same industry and analyze three year of their financial statement ands forecast it for another three year.

We have chosen plantation as our industry and we use Tradewinds Plantation Berhad as our company and BLD Plantation Berhad as our competitors as they practice the same principal of activities.

OBJECTIVES

Through this analysis, we are able:

I. To analyst the ability of the company to meet their short – term liabilities compared to Industry.

II. To measure the extent to which the firm has been financed by debt.

III. To measure the effectiveness a firm in using its resources or assets.

IV. To measure the overall effectiveness as shown by the returns generated on sales and investment.

V. To compare the performance of the company compared to the Industry in term of level of debt and it profitability.

LIMITATIONS

In order to finishing this report, there are a few limitations:

I. Lack of understanding in the need of report.

Since we are new to this subject