Financial Statement Analysis Report: BONIA Corp vs PADINI Holdings

This report provides a comprehensive financial statement analysis of BONIA Corporation Berhad and PADINI Holdings Berhad. It begins with an introduction to both companies, outlining their business activities and corporate structures. The analysis then delves into the companies' operating liabilities, examining components such as trade payables, other payables, and income tax liabilities. Next, the report explores financing liabilities, categorizing them into secured and unsecured, as well as conventional and Islamic financing sources. The analysis covers hire purchase, term loans, and various types of financing. The report also assesses equity financing, including share capital, share premium, treasury shares, and retained earnings. Finally, it compares the financing activities of the two companies, highlighting key differences and similarities in their financial strategies. The report uses financial highlights and extracts from annual reports to support the analysis, providing a detailed overview of the companies' financial positions and performance.

Running head: FINANCIAL STATEMENT ANALYSIS
Financial Statement Analysis
Name of the Student:
Name of the university:
Authors Note:

2FINANCIAL STATEMENT ANALYSIS
Table of Contents
Part 1..........................................................................................................................................2
Introduction................................................................................................................................2
BONIA CORPORATION BERHAD:...................................................................................2
PADINI HOLDINGS BERHAD...........................................................................................4
PART 2:.....................................................................................................................................5
Description and analysis of operating liabilities........................................................................5
BONIA CORPORATION BERHAD:...................................................................................5
PADINI HOLDINGS BERHAD:..........................................................................................7
PART 3:.....................................................................................................................................9
Description and analysis of financing liabilities........................................................................9
BONIA CORPORATION BERHAD:...................................................................................9
PADINI HOLDINGS BERHAD:........................................................................................11
PART 4:...................................................................................................................................12
Description and analysis of equity financing:..........................................................................12
BONIA CORPORATION BERHAD:.................................................................................12
PADINI HOLDINGS BERHAD:........................................................................................14
PART 5:...................................................................................................................................16
Comparison of the financing activities of the companies:.......................................................16
PART 6:...................................................................................................................................17
SUMMARY:............................................................................................................................17
Reference..................................................................................................................................19

3FINANCIAL STATEMENT ANALYSIS
Part 1
Introduction
BONIA CORPORATION BERHAD:
The company is engaged in the manufacture, wholesale, marketing, promotion,
distribution and retail of luxury leatherwear, apparel, footwear, accessories and eyewear for
both men and women under its own in-house brands as well as international brands. The
group is also involved in management, development and rental of commercial properties and
management of food and beverages services (Abdullah, 2016). The company is the owner of
more than 1200 sales outlet and also operates more than 185 sales boutiques internationally
including countries like Singapore, China, and Dubai, Indonesia etc.
The corporate structure of the company can be summarised as follows:
It has 100% holding in
a) SBG Holdings Son Bhd. This includes the following:
b) Scarpa Marketing SdnBhd
c) Vista Assets SdnBhd
d) Active World Pte Ltd.
It has 705 holding in Jeco (Pte) Ltd.In terms of manufacturing it holds Long Bow
Manufacturing Sdn Bhd. In terms of property development it holds BCB properties Sdn Bhd.
In addition, MakabumiSdn Bhd.
In terms of Property Investment it holds:
a) CB Holdings Sdn Bhd.
b) Luxury Parade Sdn Bhd.

4FINANCIAL STATEMENT ANALYSIS
c) Ataly Industries Sdn Bhd.
d) Maha Asia Capital Sdn Bhd.
FINANCIAL HIGHLIGHTS OF THE COMPANY:
PADINI HOLDINGS BERHAD
It is engaged in the business of retailing involving garments, shoes accessories of men
and women, ancillary product, children’s garments, maternity wear and accessories via
various subsidiaries (Dalnial et al., 2014). Some of the most prominent under its arsenal are:
1) VINCCI
2) MIKI
3) SEED
4) PadiniAuthentics
The company is operating mainly in Malaysia and exports its goods to The Middle
East and South East Asian countries.

5FINANCIAL STATEMENT ANALYSIS
The corporate structure of the company is as follows:
It has 100% holding in the following subsidiaries:
a) MIKIHOUSE CHIKDREN’S WEAR SDN BHD.
b) PADINI CORPORATION SDN BHD.
c) SEED CORPORATION SDN BHD.
d) YEE FONG HUNG SDN BHD.
e) PADINI DOT COM SDN BHD.
f) VINCCI HOLDINGS SDN BHD
g) VICCI LADIES SPECIALTIES SDN BHD
h) THE NEW WORLD GARMENT MANUFACTURERS SDN BHD.
i) PADINI INTERNATIONAL LTD.
The financial highlights of the company are as follows:

6FINANCIAL STATEMENT ANALYSIS
PART 2:
Description and analysis of operating liabilities
BONIA CORPORATION BERHAD:
The components of the operating liabilities of the company are as follows:
a) Trade payables
b) Amount owing to subsidiaries
c) Other payables
d) Contingent consideration for business combination
e) Deposits
f) Accruals
g) Malaysian income tax

7FINANCIAL STATEMENT ANALYSIS
h) Foreign income tax
Trade payables represent the amount which is due in respect of normal trade credits
and doesn’t bear any interest element along with it. It can be clearly inferred from the picture
that the trade payables of the group has reduced from the year 2015 to 2016. The company
had no balance in respect of the trade payable (Mohanram et al., 2017).
The amount owing to the subsidiaries represent the amount which have been paid in
advance, behalf and are payable on demand in the form of cash and cash equivalents. It can
be seen that in respect of the company the amount has increased substantially.
It is clearly evident that both in case of group and the company the amount
corresponding to other payables has increased substantially from the year 2015 to 2016. The
contingent consideration for business combination represents the amount that has been paid
for the purpose of acquisition of the business of IBB (Grimm & Blazovich, 2016). It can be
seen that in respect of the group the amount has substantially increased from the year 2015 to
2016 whereas the company had no balance in this respect.
It can be noted that the deposit with the group has increased from the year 2015 to
2016 whereas the accruals with the company has reduced from the year 2015. The accrual in
case of the company has also reduced from the year 2015 to 2016.
It can be seen that the group’s income tax liability both in respect of Malaysian
Income tax and Foreign Income tax has reduced from the year 2015 and similarly in case of
the company the income tax liability of in respect of Malaysian Income tax has reduced from
the year 2015 to 2016.

8FINANCIAL STATEMENT ANALYSIS
PADINI HOLDINGS BERHAD:
The components of the operating liabilities of the company are as follows:
a) Third parties under the head trade payables.
b) Other payables
c) Accruals
d) Deferred revenue from customer royalty points
e) Malaysian tax expense
f) Foreign tax expense
The ‘third parties’ represent the amount payable as part of normal trade credit and
doesn’t bear any interest with it. It generally ranges from 30-90 days. It is clearly evident

9FINANCIAL STATEMENT ANALYSIS
from the figure that the amount in respect of the group has increased from the year 2015 to
2016. Whereas in case of the company it had no balance as on, that date.
Other payables includes a sum which represents an amount owing to the bank in
respect of bank acting as a settlement and paying agent on behalf of the group before the
expiry of the period granted by the trade payables under a trade related financial agreement
entered between the group and the bank (Grant, 2016). It can be seen that both in the case of
the group and the company the amount pertaining to the other payables has increased.
Accruals represent the amount of outstanding expenses of the company. It can be
clearly seen that both in case of the group and the company the amount has increased.
Deferred revenue from customer loyalty points represents the amount of
unredeemed rebate vouchers by the customer.it can be clearly seen that the corresponding
amount has increased in case of the group from the year 2015 to 2016 (Safdar, 2016).

10FINANCIAL STATEMENT ANALYSIS
PART 3:
Description and analysis of financing liabilities
BONIA CORPORATION BERHAD:
As it can be seen from the figure above that, the components of the financial liabilities
of the company are as follows:
The financial liabilities of the group and the company can be broadly categorised as
secured and unsecured and can be further sub- categorised as conventional sources of
finance and Islamic financing liabilities:
The components of secured and conventional sources of financial liabilities are as follows:
a) Hire purchase and lease creditors:

11FINANCIAL STATEMENT ANALYSIS
It should be noted that the hire purchase liability of the group has reduced in respect
of the previous year 2015. Similarly, the company has also been bled to eradicate the
hire purchase liability from its balances outright in the year 2016 (Maheshwari, 2017).
b) Term loans:
The term loans of the group in the year 2016 has increased in respect of the term loans
balance in the year 2015 whereas the balances of term loans of the company has
decreased in the year 2016 from that of the year 2015 (Gong, 2017).
The components of the secured Islamic financial liabilities are as follows:
Tier financing-i:
As per the extract of the annual report above the tier, financing balances both in the
respect of the group and the company has increased from the year 2015 to the year 2016.
The components of the unsecured conventional sources of finance comprise of only of
term loans. It can be observed from the extract that in case of the group the balance of the
term loan has reduced and the in case of the company it didn’t have any balance of term loan
in the past and has not taken any term loan this year too (Demmer et al., 2016).
PADINI HOLDINGS BERHAD:

12FINANCIAL STATEMENT ANALYSIS
As it can be observed from the extract of the annual report that the components of the
financial liabilities of the company are as follows:
a) Hire purchase
b) Term loans
The detailed description of the liabilities is given here under:
a) Hire purchase-
It can be deciphered from the extract that the hire purchase balance has reduced in case of
the entire group from the year 2015 to 2016 whereas the company has not taken any hire
purchase in the year 2016 too thus keeping the balance at zero (Drake et al., 2017).
b) Term loans:
The term loans balance in both the cases of the company and of the group has
reduced. This suggest that the company and the group are following the same trend
and have focussed to reduce the balance of their term loan (Omar et al., 2014).