Padini holding berhad essay

The consumers passing the budget on garment are depending on the season. Another failing of Padini is they have no online shopping web site. It besides non all the client is populating in the metropolis and near to shopping Centre.

Padini holding berhad essay

On top of that, the financial and strategic objectives set by the management to meet its goals are also outlined in the body of the report. Through the analysis of the financial statements, the liquidity position of the group can be gauged by using a number of measures like the trade receivables and payables period, current and quick ratio, and also its working capital cycle.

Besides, an analysis of the capital structure of the group shows that there is a lack of equity funding as compared to debt funding in the past three years while the group moves to a more conservative approach in managing its debts.

On the other hand, while its gearing ratio increases slightly as compared to the past year, it still meets the industry average ratio and hence poses no threat to the going concern of the group.

The success of the company can be attributed to the prudence of it management and the commitment of its staff. Each brand represents a fashion philosophy; each philosophy covers a comprehensive range of products aimed at a targeted consumer.

In terms of the share price, it is noted that there is a significant decrease in share price of the group in year due to a share split involving subdivision of its existing shares to enhance its share liquidity. However, due to the fact that its growth rate in dividend is increasing annually, its share price is expected to increase in future periods.

Introduction Purpose of report This research is carried out to enable us have a better understanding on the financial statements and business direction of Padini Holdings Berhad. Padini and Vincci are its most prominent brands.

It was subsequently renamed to the present Padini Holdings a year later. The year witnessed the establishment of Padini Dot Com Sdn Bhd to provide electronic business services and solutions for the group. They are committed to achieve this goal through hard work, discipline and creative endeavor.

Objectives i Financial Objectives Padini Holdings Berhad is involved in investment holding and provision of management consultancy services to its subsidiaries. Hence, prices are set affordable for this segment of customers which will definitely attract their attentions.

On top of that, Padini also exports its products to ThailandBrunei, India and other countries with their Made-in-Malaysia stamp. Improvement in its management setting and product innovation is continuously done so as to remain as the top fashion company. High quality products along with high standard of designs are maintained by Padini through the payment of lump sum bonus as a motivation to employees if targeted sales were achieved.

The increase in payables period may be a good sign as it shows that suppliers have confidence with its payback ability by granting longer credit period.

The group takes the full advantage of credit facilities by using the interest free loan to finance its daily operation and subsequently improve its performance. The decrease in quick ratio in to 1.

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However, the quick ratio of greater than 1 indicates that the group is in relatively good short-term financial standing and will be able to pay its current obligations in time when they fall due.

Working capital cycle of Padini decreases from days in to 52 days in but subsequently increases to days in due to significant changes in inventory days. Although the substantially increase in working capital cycle implies cash being tied up for longer duration, it does not necessary reflects the inefficiency in working capital management.

C Sources of fund utilized by Padini Equity Funding From the financial statement, we noticed that there is no issuance of new share by Padini for the past three years. There is only a share split involving subdivision of every one existing share of RM1.

The share split is ranked pari passu in all respects amongst themselves. Debt Funding Long and medium term funding of Padini is made up of two main categories which are long term loan and hire purchase, finance lease obligation.

For long term loan, it shows that there is a continuous increase for the past three years. It indicates that there is a significant increase which contributes to the large percentage of the total long term funding of Padini.


Even though there is a drop in its hire purchase, the significant increase of its long term loan has off set the drop and thus constitutes to an increase in total long term loan.

In conclusion, Padini has been adopting a conservative approach as their financing policy by using long term source of finance in primarily funding their current assets. By utilising more on long term sources of finance, it benefits Padini with the priority of claim in the event of liquidation and debt interest is tax deductible.

Padini holding berhad essay

This contributes to a slight decrease of the gearing ratio by 0. From toshare equity increases by RM 48,, non-current borrowings increased substantially by RM 12, However current borrowings decreases slightly by RM 1, which leads to 0.

Although the gearing ratio increases slightly, it meets the industry average ratio. Thus, it is acceptable.

Padini background

Padini is less vulnerable to downturns in the business cycle and will not face the risk of going concern. The ability to distribute by way of dividends to shareholders is secured. The interest cover increases significantly by Debt Ratio As we can see from the analysis, the debt ratio of the company has increased slightly in these three years.

However, the rate of increase from to is only approximately half of that in previous year, from to The significant drop of the share price in is due to share split decision made by BOD involving subdivision of each ordinary share of RM0.

The wealth of the shareholder comes from dividends received and market value of the shares. The share price will also go up with the increase in the dividends received by shareholders.Today, Padini Group is a leader in the multibillion textile and garment industry in Malaysia. We have nine labels in our family of brands and retail in freestanding stores, franchised outlets and consignment counters in Malaysia and around the world.

Padini Holdings Berhad is a Malaysia-based investment holding company. Padini has setup its operation in Malaysia’s apparel industry, manufacturing and trading. Its product line includes garments for men, women and children; women shoes, maternity wear and fashion accessories for men, women and.

Over the years, PADINI has solidified a reputation as a retail provider with durable and trustworthy products that are fashionable and current.

In line with our vision 'to be the best fashion company ever', we work to bring you up to the minute fashion items to suit your changing lifestyle and taste. The weakness of Padini Holding Berhad is the profit is unstable.

The consumers spending the budget on garment are depending on the season.

Padini background

In Malaysia, the profit will be at the highest peak where there is festival season like Chinese New Year or Hari Raya.

In , Padini Holdings Sdn Bhd was converted to a public listed company and changed their name to Padini Holding Berhad soon they’re listed in Second Board in KLSE.

Padini holding berhad essay

Padini was then transferred to the Main Board in Padini is a Malaysian-domiciled investment-holding company headquartered in HicomGlenmarie Industrial Park, Shah Alam.

Incorporated in as proprietorship under the trade name Hwayo Garments Manufacturers Company, Padini was initially engaged in .

Padini Holdings Berhad