The Maple Syrup Company is a potentially new client. You need to complete a due diligence of the Maple Syrup Company in order to recommend/not recommend whether your FSP takes this client on as a new client. Detailed below are the financial statements for the Maple Syrup Company forecasted for the next five years.

1.1. Describe the industry that you believe the Maple syrup Company is in? (3)

1.2. What are the factors that contribute to profit in this industry as a whole? Provide reasons for your answer?(4)

1.3. Using the financial statements calculate the following: Liquidity ratio Debt/solvency ratio Profitability ratio (6)

1.4. Discuss the profitability of the company. What data are you using to come to this conclusion?

Which financial ratios that have assisted you in coming to this conclusion.(4)

1.5. Based on an analysis of the financial statements conduct a SWOT analysis for the Maple syrup Company. What do you believe are the business and financial risks that this company faces? Make sure you differentiate between business and financial risks?(5) 1.6. List at least 4 regulations that would affect a company of this nature in South Africa?(4)

1.7. What would you say the core competencies of the company are? Provide reasons for your answer .(4) 148

1.8. Based on the following scenarios suggest the recommendation you would make in terms of specific financial instruments to the Maple Syrup company and give reasons for your recommendations?(10)

1.9. Develop a trading strategy for the maple syrup company based on the 3 year financial statements that you have examined for the Maple Syrup company ( what financial instruments would you recommend for this company based upon the analysis and research you have conducted above.) Be sure to provide a motivation for the recommendations you make. (10)