FINANCIAL PLANNING AND INVESTMENT

Financial Planning and Investment

Executive Summary

Before making an investment decision it is necessary to analyse the financial condition of the company and economy of the country to see whether the environment it is favourable or unfavourable. Continental Coal limited is from basic materials sector which is a part of Industrial Metals & Minerals. The financial condition of Continental Coal has been deteriorated badly due to high debt and negative profit from last five years. Furthermore, looking at the current situation of Australia's economy, it has developed modern market economy with a GDP of about 1.23 trillion USD. Among other problems, analysts say that growth in the Australian currency against the U.S. dollar is due to the goods and services from Australia are too expensive on the world market. In April, one Australian dollar was $ 1.0764. This is the highest rate since 1983, or when the country introduced a floating exchange rate of the national currency. In 2010 the central bank of Australia did not change the interest rate benchmark at 4.75% and in 2010 GDP of Australia grew by 2.7%. Financial ratios are not in supporting the investment decision for the investors as none of ratios is above the industry average. Though Continental Coal limited is expanding their operation and making investment but unable to make profits. They have opted for the growth strategy through which they decreasing trend has been reducing. But this does not means that investment would be beneficial rather it is better to wait for the right time to invest in Continental Coal limited.

Table of Content

EXECUTIVE SUMMARYII

INTRODUCTION1

OVERVIEW OF THE COMPANY - CONTINENTAL COAL LIMITED1

ECONOMIC ANALYSIS OF AUSTRALIA2

Current Situation of Australian Economy3

Foreign trade4

Australia's GDP declined in the first quarter of 20115

Investment Climate in Australia6

GLOBAL ECONOMY7

Global Demand, Supply and Commodity Prices8

Global Exports9

Imports9

New phase of Global economy10

FUNDAMENTAL ANALYSIS OF CONTINENTAL COAL LIMITED11

Income Statement Analysis11

Balance Sheet Analysis12

Cash Flows Analysis13

Ratio Analysis14

RECOMMENDATION16

REFERENCES18

APPENDIX20

Financial Planning and Investment

Introduction

Government secretly confiscates an important portion of citizen's wealth, due to the continuous inflation process. Therefore, it is important for citizens to always deal with the money matter. Hence, financial planning improves citizen life worth living. This comprises of chief material life parts as transformation of financial statues which give better quality life and hence, dealing with the financial changes must be conceived. This is the reason for planning of the finance as it plays an important role in the financial survival. The data of Continental Coal Limited will be analysed from using top - down approach for the perspective of a potential investor, whether it is beneficial to invest in this company or not.

Overview of the company - Continental Coal Limited

Continental Coal limited is from basic materials sector which is a part of Industrial Metals & Minerals. It was established in 1985under the category of under Coal Mining Services. This company generally provides coal for mining, Murray Coal Mining, Deep Coal Mining, Modern Coal Mining and American Coal Mining. The main production & thermal sales is in South ...