It maps whether all requirement are met or not.

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Traceability matrix maps the requirements to the test cases written. The matrix will help us to check if we have attained 100% test coverage or not.

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Traceability refers to the ability to trace back or forward. We need to Maintatin traceability Matrix for both forward and backward traceability.
Traceability traces the system requirements to functional, non-functional and interface requirement, there by to HLD, LLD later to code and all test cases. This will help in tracing the requirements from test case to taest case from requirement.

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From Testing point of view, Requiremnt tracebility is important to map/check that whether relative test planning has been done or not for each functional and non function requirement, so that no requirement should be left un-tested during execution.
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Requirements Traceability is very impertant in Product Testing. Weacknowledge thetesting activity to be complete only when the RTM is complete. The Tester is assured that proper testing is done only when the test cases trace back to all the requirements.
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Requirements traceability matrix maps the requirements to theprepared test casesto estimate completion of requirements coveragein product testing.
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