I. Going Concern Status -Considerable negative fluctuations, particularly in cash flow or profitability, may give rise to doubts regarding the company's capacity to carry on with business operations. -The company's capacity to fulfill its financial commitments could be endangered by recurring downturns or financial difficulties. -Variations that impact crucial metrics such as debt levels or liquidity ratios can have an effect on the evaluation of the company's ability to continue as a going concern. -To ascertain the implications of variations for the company's continuity, it is imperative to evaluate the underlying causes, which may include market conditions, competitive pressures, or internal challenges. I. Relevant Issues : -Variations could draw attention to hidden problems like production hold-ups, supply chain interruptions, cost overruns, or problems with regulatory compliance. -Negative fluctuations in key performance indicators (KPIs) have the po
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GROUP 5 (FARM FRESH)
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Part A : The Annual Report Part B: Analyzing Problems Calculate the financial ratios for 2 years (2023 and 2024) and provide an analysis of the significant ratio changes for 2 years. Please calculate the financial ratios in the table below: Part C: Finding and Conclusions Based on the significant changes observed in the financial ratios between 2023 and 2024, you are required to: 1. Verify the potential impact of these variations on the company's business risk, going concern status and any relevant issue. a) Finance performance: Farm Fresh’s net profit increased to RM63,281 from RM49,934 in the previous year during the fiscal year that ended on 2023. The substantial increase in turnover reflects a successful strategy or market demand. Total assets and net assets grew, showing that the company is expanding its financial base. b) ESG Risk Rating: Increasing total assets (20.42% increase) can support long-term sustainability i