Managerial Accounting : Padini Holding Bhd.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student
Name of the University
Author Note

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MANAGERIAL ACCOUNTING
Table of Contents
Background of company:.................................................................................................................2
Development of the company:.........................................................................................................2
Market development:.......................................................................................................................3
Technology and expertise:...............................................................................................................5
General prospects:...........................................................................................................................6
Financial position and trends:..........................................................................................................7
Products profitability:......................................................................................................................8
Liquidity:.........................................................................................................................................8
Capital structure and gearing:..........................................................................................................9
Operational viability:.......................................................................................................................9
Risk and prospects:........................................................................................................................10
Share price movements and trend:.................................................................................................10
Financial Position and Trend.........................................................................................................11
Capital Structure and Leverage..................................................................................................14
Efficiency and Operational Performance...................................................................................14
Product Profitability...................................................................................................................14
Conclusion.....................................................................................................................................15
References list:...............................................................................................................................16

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MANAGERIAL ACCOUNTING
Background of company:
Padini Holding Bhd. Is a well-known Malaysian holding company whose subsidiaries are
solely engaged in the marketing and retailing of the garments and textile industry. Its operations
began in the year 1971 as a manufacturing company named as Hwayo Garments and is affiliated
in garment manufacturing and wholesaling (Corporate.padini.com, 2020). Eventually it entered
as a retail industry with the flagship brand called Padmini. This group is broadly categorized into
five different sections of strategic trading which include:-
1. Vincci Ladies' Specialties Centre Sdn. Bhd,
2. Padini Corporation Sdn. Bhd,
3. Seed Corporation Sdn. Bhd,
4. Yee Fong Hung (Malaysia) Sendirian Berhad,
5. Mikihouse Children's Wear Sdn. Bhd.
There are several other operating segments of this investment which comprises of the
management services and investment holding. However most of the business is operated in
Malaysia.
Development of the company:
It started to facilitate the retailers and the distributers with its manufacturing, trading and
supply through its apparel industry. The concept of the PADINI Concept Store is to sell all the
brand held by Padini in one single store thereby creating a one stop shopping. It was in Johor
Bharu City Square, in Malaysia that the first shopping outlet of Padini Store was set up. Padini
became the major forces of the apparel and the garment industry in Malaysia. Apart from being
involved in distribution it is also engaged in retail services of its own fashion labels through 190

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MANAGERIAL ACCOUNTING
freestanding stores, franchise and consignment counters. The leading products of Padini are
formal, fashion wear and accessories. It is well known fashion brand in the Malaysian cities
having its well established brand houses widespread in Malaysia. One of the most significant
feature of this investment is the brand image associated with it which acts as s fashion
philosophy and engages an extensive range of products which aims at the target consumers
available. The real value of its brand image indicate 3 most important factors like Quality,
Functionality and Price, which any customer will value at the time of purchase and investment.
The ruling brands which are produced by Padini are PADINI Authentic, PDI,P & CO,
Seed, Miki, Vinci Accessories. All the 5 brands are well known to target both males aw well as
the female populations. Ther brands are gaining prominence not only in the apparel sector but
also the brand called Seed café is a new dimension to PADINI as its spreading its wings in the
food operations for its company. The famous brands Vincci and Vincci accessories are more
focused on the flexible taste of women consumers on shoes, bags and accessories
(corporate.padini.com 2020).
Market development:
Story of Padini can be seen as tracing the development of small business into one of the
largest fashion retailers of the world. Sole proprietorship basis was used to wholesale the
finished and manufactured ladies garments to the departmental stores with further expansion into
textile trading. Products in the domestic market are sold through consignment counters, various
retail stores and external and internal online portal. Marketing of the products is done by the
group by utilizing a great number of housing brand and also merchandizing the value for money
(Dales, 2019).