Padini Holdings Berhad is a company based in Malaysia and is an investment company as well. It includes 9 brands & has retail in 330 free-standing shops, franchisees & consignment stores in Malaysia as well as over the world (Forbes, 2019). Its subsidiaries are:
Over all, they have more than 140 outlets in Malaysia and multiple markets around the world (Padini Corporate, About Us)
The company’s brands are also accessible on their online web-site called Padini.com.
Padini Holdings Berhad was publically listed on the Second Board of Kuala Lumpur Stock Exchange (now Bursa Malaysia) in 1998.
This report evaluates the financial performance of Padini and aims to conduct an overall analysis of the firm for understanding & assessing the financial position in the market and whether or not the company is worth investing into. It uses several financial tools such as financial ratios in order to assess its cash flow situation and its capital structure for understanding whether or not it is feasible to invest in the company. Financial ratios have a crucial role in evaluation of the performance and financial condition of any company. (Chen; Shimerda, 1981)
A comparative analysis with Bonia has also been conducted in order to understand the financial standing as well as position of the company and how well it is doing comparatively in terms of its operations, cash flows, investments, management of its working capital cycle and profits using financial ratios.
The primary objective of financial reporting includes providing data on the financial standing & performance by firms analysed using numbers found in financial records that has been seen as a guide for all their decision-making. People using accounting data for evaluating & forecasting the level of profitability, equity growth, cash flows & dividend of the companies’ economic as well as other decisions, their reliance is more towards this data than any other data found from the financial statements as well as its components(Arkan, 2020).
1.2.1 Type of Industry and Its Contribution to The Economy
The report also analyses the industry that the company is operating in, i.e. AAA manufacturing industry and assesses the financial performance of the industry as well in order to get a broader understanding of how the industry works and analyse the market as well as financial position of Padini in comparison with its competitors within the industry.
Manufacturing- It is an industry which produces goods using raw materials with the help of manual labour/ machinery & which is commonly done systematically and has a proper division of labour and at a large scale (Brittanica, 2020).
The innovative nature of the manufacturing industry has led to a rise in economic productiveness as well. After the Industrial Revolution began, our ways of producing & consuming goods has revolutionized & its innovativeness which has allowed & has continued to allow the economy in becoming increasingly more productive in the services that it offers.
Augustyn, A.(2020).Manufacturing. Retrieved from: https://www.britannica.com/biography/Gustav-Stickley
n.a. (2019).Padini Holdings. Retrieved from: https://www.forbes.com/companies/padini-holdings/#18092949530d
Arkan, T.(2016). The Importance of Financial Ratios in Predicting Stock Price Trends: A Case Study in Emerging Markets. InFinanse, Rynki Finansowe, Ubezpieczenia.
Chen,K.H.& Shimerda. T.A.(1981). An Empirical Analysis of Useful Financial Ratios.Financial Management, Vol. 10(1). Doi: 10.2307/3665113 /https://www.jstor.org/stable/3665113
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