Missile Target Sdn. Bhd. (MTSB) was involved in selling of consumer products such as branded electrical products, furniture, jewelleries, China wares, crockeries, motorcycles, boats and others. Sales of the company were growing at a rapid pace and it was eyed by many merchant banks proposing to take the company public. The company gained popularity via conducting sales through installments by deducting directly from the (Government) employees' salaries through a collection body called Angkasa. This collection at source had resulted with no bad and doubtful debts. But unfortunately the company continued to increase its loans and borrowings until year 2000 hence had to be restructured. The main problem of the company was when the franchisees started to go for cash transactions, in other words, becoming money lenders where the customers received cash instead of receiving products. However, all documentation processes were done systematically and in order. There was also a declaration form with thumb print of individual customers stating that each of them received products in good working order. In the year 1997, these transactions grew by leaps and bounds, but the effect on collection was very bad. Collections were static because these customers do not want to pay a higher amount as billed in the invoice whereas their actual receipts were only 40-45% of invoiced prices. Due to this, MTSB faced difficulties in their cash flow management that warranted continuous borrowings. Bank loans kept ballooning although the credit period cycle either of 36 months or 60 months had been completed. The banks by year 2000 realized through the Accounts that something was not favorable and decided not to disburse any more loans, which suddenly resulted in a bid drop of sales to less than RM100 million in year 2001. Two other problems identified were the ordering and bulk purchases of products. Usually suppliers would entice MTSB to buy products in large quantities that were going to be phased-out within six months to a year period. These products were to be paid to creditors within a 45 days term period whereas the reselling process may take a year or so to sell, more so with phased-out models. The second problem was with the EDP where the Department was still trying to resolve the data lost during year 1992 to 1995 and with its reconciliations process with the hard copies. As such 10% of bad debts accumulations were difficult to trace with no remedial action.