Padini Holdings Berhad Case Study
Padini Holding Berhad (Padini)
(Source: Padini Holdings Berhad, 2016)
The external auditor of Padini is BDO and the auditors expressed that Padini’s financial statements are in true and fair view. According to “Padini Holdings Bhd” (2017), Padini has total three members of audit committee (Which met the minimum requirement on number of audit committee) include the chairman which show are:-
(a). Mr Foo Kee Fatt (Chairman of Audit Committee, Independent). He is qualified to take this position as he is an approved company auditor under Section 8 of the Malaysian Companies Act, 1965. He is also the member of Malaysian Institute of Certified Public Accountants, Malaysian Institute of Accountants and Chartered Tax Institute of Malaysia.
(b). Mr …show more content…
Technology risks. This risk appears when Padini uses of the internet (such as online company’s website (Refer to figure 1.12 under appendixes), online distribution channel (Refer to figure 1.13 under appendixes), and so forth) in order to ensure its businesses are smoothly and efficiently operate. As everyone known, there are certain risks when using internets such as hacking or virus attacks. The main reason for the appearance of this risk is because hackers want to steal or unauthorized manipulation of company data and information.
(b). Personnel risks. As similar to HB’s case, the majority of the boards of directors are in the ageing stage (Refer to figure 1.14 under appendixes). This may result in those boards in the ageing stage of Padini become incapable to hold the position and may be resigned from the position at the same time. Since they are the key person of Padini and it may be a huge problem if Padini unable to find the competence persons (with sufficient knowledge and experiences) to take over the …show more content…
Inventory risks. This risk arises when the company unable to sell its products or there will be a drop in the value. In order to follow up with the fashion trend, fashion companies included Padini must constantly introduce new product designs to ensure that they meet customers’ requirements. But, if the company holds too many inventories of new product and cannot be sold until another new product design is released, the company may need to give high discounts to dispose of those inventories. By referring to figure 1.15 and figure 1.16 under appendixes, I found that there are some inventories are obsolete and had been written off by Padini. Besides, I also found that some inventories of Padini incur a loss and this may be due to the company sell off its inventories at the price below its
(Source: Padini Holdings Berhad, 2016)
The external auditor of Padini is BDO and the auditors expressed that Padini’s financial statements are in true and fair view. According to “Padini Holdings Bhd” (2017), Padini has total three members of audit committee (Which met the minimum requirement on number of audit committee) include the chairman which show are:-
(a). Mr Foo Kee Fatt (Chairman of Audit Committee, Independent). He is qualified to take this position as he is an approved company auditor under Section 8 of the Malaysian Companies Act, 1965. He is also the member of Malaysian Institute of Certified Public Accountants, Malaysian Institute of Accountants and Chartered Tax Institute of Malaysia.
(b). Mr …show more content…
Technology risks. This risk appears when Padini uses of the internet (such as online company’s website (Refer to figure 1.12 under appendixes), online distribution channel (Refer to figure 1.13 under appendixes), and so forth) in order to ensure its businesses are smoothly and efficiently operate. As everyone known, there are certain risks when using internets such as hacking or virus attacks. The main reason for the appearance of this risk is because hackers want to steal or unauthorized manipulation of company data and information.
(b). Personnel risks. As similar to HB’s case, the majority of the boards of directors are in the ageing stage (Refer to figure 1.14 under appendixes). This may result in those boards in the ageing stage of Padini become incapable to hold the position and may be resigned from the position at the same time. Since they are the key person of Padini and it may be a huge problem if Padini unable to find the competence persons (with sufficient knowledge and experiences) to take over the …show more content…
Inventory risks. This risk arises when the company unable to sell its products or there will be a drop in the value. In order to follow up with the fashion trend, fashion companies included Padini must constantly introduce new product designs to ensure that they meet customers’ requirements. But, if the company holds too many inventories of new product and cannot be sold until another new product design is released, the company may need to give high discounts to dispose of those inventories. By referring to figure 1.15 and figure 1.16 under appendixes, I found that there are some inventories are obsolete and had been written off by Padini. Besides, I also found that some inventories of Padini incur a loss and this may be due to the company sell off its inventories at the price below its